GLOBAL FORWARDING, FREIGHT

Lively global trade raises revenue and volumes in freight forwarding business

The GLOBAL FORWARDING, FREIGHT division increased revenue in the first half of 2010 by 24.4% to €6,728 million (previous year: €5,410 million). The total includes exchange rate gains of €288 million as a result of the weak euro. Revenue grew organically by 19.0% in the reporting period. Overall, global trade picked up considerably in the first half of 2010; our freight forwarding business also reflected this positive trend. 

The Global Forwarding business unit generated €4,992 million in revenue in the first half of the year, up 31.9% on the prior-year figure of €3,784 million. The increase was 25.6% after adjustment for exchange rate gains of €240 million. Despite continued high freight rates and fuel prices, we were able to improve gross profit by 9.8% from €989 million to €1,086 million.

Air and ocean freight volumes continue to rise

Transport volumes increased clearly compared with the prior year. Demand for transport services has risen in both the air and ocean freight sectors. Limited freight capacities therefore increased the prices of transport services considerably. Since the first quarter, we have been increasingly able to pass on these higher prices to our customers. Freight rates have remained extraordinarily high, especially on trans-Pacific trade lanes. Our gross profit margin in the reporting period reflected this. 

Air freight volumes in the first half of the year gained 31.2% on the previous year and are now only 3% below the levels in the first half of 2008, i. e., pre-crisis levels. Second quarter volumes were 5% above the first quarter. The air freight market also benefited, albeit more modestly, from low inventories in many industries since this boosted demand for fast-transit products. Industries that suffered the most during the crisis, such as the high-tech sector, are now growing the fastest again. Thus, volume and revenue increases largely originated in Asia. Air freight revenue in the first half of the year was up 42.9% on the prior year. 

Our global air freight network responded rapidly and successfully to the air space closures throughout the EU due to the volcanic eruption in Iceland. We procured multi-mode transport solutions and additional charter capacities. Our customers were therefore able to minimise freight backlogs and in some cases avoid plant shutdowns. 

Global Forwarding: revenue
€m
	H1 2009 adjusted	H1 2010	+/– %	Q2 2009 adjusted	Q2 2010	+/– %
Air freight	1,775	2,536	42.9	874	1,367	56.4
Ocean freight	1,235	1,556	26.0	579	853	47.3
Other	774	900	16.3	408	496	21.6
Total	3,784	4,992	31.9	1,861	2,716	45.9