DACHSER’s growth gets a tailwind - DACHSER Intelligent Logistics

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4/17/2018
DACHSER’s growth gets a tailwind

For the first time, the logistics provider achieves revenue of over EUR 6 billion with growth driven by strong export business in Europe and invigorated global trade.
Road-trail-wind
DACHSER’s growth gets a tailwind

In the 2017 financial year, DACHSER achieved over EUR 6 billion in revenue for the first time. The global logistics provider increased its consolidated gross revenue by 7.2 percent to EUR 6.12 billion. DACHSER also set other company records by handling a total of 81.7 million shipments (+2.1 percent) weighing 39.8 metric tons (+4.3 percent). On a global level, DACHSER created 1,648 new jobs in 2017.

“We systematically pursued our successful export strategy for European overland transport and gained an additional tailwind from an invigorated global trade,” says Bernhard Simon, CEO DACHSER SE. “Rising market rates for air and sea freight, in particular, resulted in a significant increase in revenue.”

Business development in detail

In 2017, DACHSER’s Road Logistics business field—which comprises the transport and storage of industrial goods (European Logistics) and food (Food Logistics)—achieved gross revenue of EUR 4.44 billion (+3.1 percent). Shipments and tonnage increased by 2.1 and 3.6 percent respectively. In the European Logistics (EL) business line, a constant focus on European export business within the EL network once again provided for robust growth. In particular, this applies to the EL North Central Europe business unit, which reported growth of an impressive 7.4 percent, but also to EL France & Maghreb and EL Iberia and the dynamic growth of their contract logistics business. “Germany remains the backbone of our operation, but France is well on its way to becoming a second pacesetter for cross-border overland transport business. We’ve been systematically setting up this strategic logistics axis over the past few years,” Simon explains.

In the Food Logistics business line, growth was once again above average. This was thanks primarily to the German business, with a contribution from several new customers acquired for cross-border transports. “Five years on from the birth of the European Food Network, we can now take stock: the decision to establish a strong partner network under our system leadership was the right one,” says Simon.

In the Air & Sea Logistics (ASL) business field, greatly invigorated business combined with a rise in freight rates—especially in air freight—to push gross revenue up by 15.7 percent to EUR 1.79 billion. All three regional ASL business units saw double-digit percentage increases in revenue, with the Asia business achieving the largest revenue growth, of over 20 percent. The number of shipments the business field handled overall went up 6.7 percent, while TEUs and tonnage increased by 8.5 and 23.3 percent respectively.

“Air and sea freight is a volatile business with revenue as ever swinging between extremes,” said Simon. “We are, however, focused on ensuring sustainably profitable growth. So we are increasingly dovetailing our two business fields and are pushing forward with system integration.”

Forward-looking investment in network and personnel

Despite the favorable tailwind, which continued through Q1 2018, Simon recognizes capacity bottlenecks and the growing shortage of drivers as the major factors that could potentially limit future growth. “For this reason, our commitment to training has top priority.” In 2017, the first 22 professional truck drivers completed their training through “DACHSER Service und Ausbildungs GmbH” (DACHSER Service and Training) in Germany. In the same year, 106 drivers started their training at 35 German locations. “We want to increase the number of trainee drivers every year and establish our quality concept also in other European countries,” Simon said.

DACHSER’s investment in network locations, fleets, technology, and IT systems increased by 5 percent to EUR 136 million in 2017. “Last year we vastly expanded our capacity in Germany, especially in the food business,” Simon said. DACHSER announced that it has earmarked a further EUR 188 million for investment in 2018, this time focusing on industrial goods.

Overview of gross revenue:

Gross-Corporate-Figures-2017-English

Overview of net revenue:

Net-Corporate-Figures-2017-English
U.S. revenue increased by 9.2 percent to USD 198 million

Development in the United States

DACHSER SE’s subsidiary, DACHSER USA Air & Sea Logistics Inc.’s revenue increased by 9.2 percent to USD 198 million in 2017. Sea and air freight shipments advanced both by 7 and 7.9 percent, respectively.

“To better serve our customers we have been expanding our U.S. footprint now for more than a decade” says Frank Guenzerodt, President & CEO of DACHSER USA. “The U.S. is among the top trading partners for most countries, therefore we need a substantial office network to support our customers’ needs and the overall growth of DACHSER” Guenzerodt continues. Planning to grow organically, at least 2 new offices are slated to open in 2018.

Excellent customer service is a number one priority for DACHSER USA. Dedicated customer service staff is available at the offices to build long-term customer relationships. “As a family-owned company with strong family values our employees are our most valuable asset. Gaining the best team members and then looking after them with training and development opportunities is vital to our success” Guenzerodt said.

DACHSER USA focuses on key markets in Asia, Europe and South America and specifically the automotive and industrial manufacturing industries. DACHSER expanded its Contract Logistics service offering in the U.S. which it plans to further grow over the coming years.

Combining it’s international transportation strength with contract logistics and domestic service offerings allows DACHSER to fully integrate customers’ supply chains with a one-stop shop approach. With the completion of the rollout of DACHSER’s global transport management system in the U.S., the company offers seamless visibility of the entire transportation chain.

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