K+N Q12022 turnover up 68% to $10.6bn on unabated demand
Air logistics volumes up 33% YoY; signs long-term deal with Atlas Air for two Boeing 747-8 freighters.
Kuehne+Nagel reported a 68 percent increase in net turnover to CHF10.2 billion ($10.6 billion) marked by continued strong demand for high-quality transport services.
While earnings nearly doubled to CHF 832 million ($865 million), free cash flow increased by almost CHF 1 billion ($1.04 billion), according to an official statement.
"Strong demand for capital and consumer goods continued in the first quarter of 2022," says Dr. Detlef Trefzger, CEO, Kuehne + Nagel International AG. "In parallel, the already strained supply chain situation deteriorated further. Kuehne+Nagel was well prepared for this scenario and we were able to reliably meet customer demands for high-quality logistics services."
Deal with Atlas Air for air freight
The sudden closure of Russian airspace led to multiple changes in air freight routes between Asia and Europe, the statement said. "Together with the overall limited capacities, this led to a significantly higher operational workload in the first quarter of 2022. Air freight volumes in the first quarter of 2022 were 574,000 tonnes, and net turnover almost doubled (up 91 percent) to CHF 3.1 billion ($3.2 billion).
Air logistics volumes during the first quarter was 33 percent above last year including an acquisition impact of 30 percent.
To secure capacity for strategic customers, Kuehne+Nagel concluded a long-term agreement with Atlas Air for two Boeing 747-8 freighters. The two aircraft will be chartered on an exclusive basis and will be deployed on international routes from the third quarter of 2022."
Sea logistics biz topline doubles, Disruption Indicator launched
The on-going congestion at many international seaports continued to characterise the first quarter of 2022. The tense market environment once again led to an exceptionally high operational workload in sea logistics. Container volumes in the first quarter of 2022 were 1 million TEU, down 4 percent from last year, and the business unit's net turnover more than doubled to CHF 4.9 billion ($5.1 billion).
"Since January, Kuehne+Nagel has been measuring the congestion at port hotspots around the world with the Disruption Indicator. This reflects the waiting times of container ships in the eleven most important international port clusters on a daily basis. The Indicator is integrated into Sea Explorer, Kuehne+Nagel's industry-recognised, real-time digital seafreight visibility tool."
Road logistics turnover up 13%
Road logistics net turnover increased 13 percent year-on-year to CHF 982 million ($1.02 billion). "In March, the business unit formed a partnership for more transparency in supply chains. As part of the Chorus research project, which belongs to Google parent Alphabet, sensor and orchestration technologies are being developed to locate and track goods. For example, temperature or humidity data are to be processed and interpreted seamlessly through the use of artificial intelligence."