European overland road transport and food logistics helped logistics specialist DACHSER continue to grow in fiscal year 2016, generating consolidated gross revenue of around 5.71 billion euros – up 1.7 per cent on the previous year. The number of shipments rose by 2.4 per cent to 80 million and tonnage by 2.4 per cent to 38.2 million tonnes.
“Despite the volatility of the global economy, we were able to maintain our stable market position through organic growth at the previous years’ levels, while simultaneously developing solutions for tomorrow’s market,” said DACHSER CEO Bernhard Simon. The company is also looking at furture growth outside Europe by expanding intra-Asian transport operations and through the targeted organic growth of its network in the Americas.
DACHSER’s Road Logistics business field, which accounts for 75 per cent of its total revenue, reported a 2.4 per cent increase in gross revenue to 3.5 billion euros. Shipments and tonnage increased by 2.2 and 2.3 per cent, respectively.
“Our country organisations have benefited all around from the strong demand for cross-border transports in the European single market. As far as the exchange of goods is concerned, Europe is and will remain stable and closely interconnected,” comments Simon.
DACHSER Food Logistics once again achieved the highest growth rate, with revenue increasing by 9.5 per cent to 812 million euros. It has been buoyed primarily by strong domestic business in Germany’s consumer goods sector. The second component in its success is the European Food Network for cross-border food transport.
With 13 partners, 10 associate members and regular line haul services among 34 countries, the Food Network has the greatest geographic coverage in Europe, Simon added.
In the DACHSER Air & Sea Logistics business field, revenue decreased by 3.0 per cent to 1.54 billion euros, while the number of shipments remained constant. This decrease in revenue was due to low international freight rates, especially in sea freight and negative currency effects, the company said.
DACHSER has increased the volume of its planned investments from 125 million euros in 2016 to 177 million euros in 2017. The main focus of these investments lies on expanding network locations, IT systems, and research and development.
“We are intensively studying all aspects of the logistics solutions of the future and the extent to which they can be digitalised. DACHSER has launched group-wide innovation processes at numerous levels in order to maintain its pioneering role in the industry,” Simon says.
The logistics provider has also been investing in the expansion of its contract logistics services, creating more than 350,000 square meters of additional warehouse space providing room for over 300,000 pallets in the past two years alone. DACHSER can thus now offer its customers over two million pallet spaces in almost 200 warehouses on four continents.