DSV has reported a tonnage fall of two per cent in the second quarter to 170,301 tonnes but posted a rise of one per cent to 340,404 tonnes in the first half of 2019.
The Danish freight forwarder said the slowdown follows the market trend but was also impacted by the termination of an unnamed high-volume, low-margin customer contract.
DSV estimates that the global air freight market declined four per cent in the first half of the year, impacted primarily by political uncertainty relating to the US-China trading relationship.
Gross profit for the air freight segment was up to DKK 1,224 million (US$182 million) from DKK 1,186 million in the same quarter last year. In the first half of the year, gross profit for the division was DKK 2,454 million, a rise on the DKK 2,251 in the same quarter in 2018.
DSV said the air and ocean divison’s “underlying gross profit per shipment showed a satisfactory development” in the first six months of 2019 and improved most significantly for air freight.
This was due to the termination of a high-volume, low-margin customer contract also impacted gross profit per shipment for air freight.
DSV’s total revenue across its entire business, grew five per cent in the first half of 2019 reaching DKK 40,058 million and was up two per cent in the second quarter to DKK 20,079 million.
In the first half of the year, it achieved a profit of DKK 2,112 million, up on the DKK 1,956 million in the same period last year. In the second quarter, profit was down to DKK 1,149 million from DKK 1,187 million in the second quarter in 2018.
Group CEO Jens Bjørn Andersen said: “We are very pleased with the strong results for the second quarter of 2019. Global transport markets are soft – especially within air freight, but DSV has managed to outgrow the market while still delivering market leading profitability.
“We expect that the Panalpina transaction will close in Q3 and we look forward to combining two strong companies and leveraging our extensive networks and expertise to provide even stronger customer offerings.”