The second quarter in the freight industry has seen some phenomenal changes. Global companies across the world have published their reports and shared just how profitable Q2 has been for them.

On August 6th, Agility, one of the world’s leading providers of integrated logistics solutions, published its second-quarter earnings. The company reported 13.8 fils per share net profit of KD 20 million. They witnessed an increase of 18.7% over the same period in 2017.

Just to shed light on the sheer magnitude of the impact – Agility is a publicly traded company with revenue of more than $4.6 billion and more than 22,000 employees working together in over 500 locations across 100 countries.

Their EBITDA (Earnings before interest, tax, depreciation, and amortisation) grew to 13.6% (approximately KD 37.1 million) and their revenue increased by 12.3% (KD 384.2 million)

Using today’s latest technological innovations, Agility Global Integrated Logistics deployed a business strategy that developed effective trade lanes (in air, ocean, and road freight forwarding). They pursued productivity maximisation and offered tailor-made solutions to customers. The combination of all of these generated these results.

A similar news was shared by the World Trade Indicator (WTI) where they said that despite the recent US-China Trade War, the results for the first half of 2018 show that worldwide TEU capacity increased by 4.1% and world trade went up by 10.2%.

While the global containers traffic might have slightly taken a hit (0.3%) due to the trade war, Japanese ports saw their container throughput increase.

Not just that, WTI shared that the world trade registered 140.7 points at the of July this year. This is a 0.6% increase than what was recorded at the end of June, with 80% of countries witnessing an increase in trade and traffic.

With the strengthening of the US Dollar, North-America was the best-performing region. Canada increased by 12.8%. And while the US saw a rapid acceleration in import and export, India rose more than any other country with a whopping 31.3% increase in trade, comfortably beating its previous record of 19.4%.

Also, we have another company that made headlines – Deutsche Post DHL Group. They published that their Q2 EBIT was completely in line with their expectations.

The Deutsche Group revenue improved to more than EUR 15 billion in Q2. They witnessed an organic increase of 6.2%. The overall profitability of DHL divisions i.e. Express, Global Forwarding, and Freight and Supply Chain considerably increased, but due to higher transportation and staff costs, the performance of their Post, E-commerce, and Parcel divisions fell back. They have actively implemented a program that will align the divisions toward long-term growth.

According to the report, they are on the track to achieve their 2018 targets and are pretty confident of meeting their 2020 forecast. Their CEO, Frank Appel, confirmed that they are clear about the challenges that lie ahead and they are already implementing the necessary measures that are required to overcome them.

Kuehne + Nagel International and Panalpina, two other global transport, and logistics companies announced positive results. A clear sign indicating the growth of the industry. A common trend between all these companies is that they were early adopters and implementors of digital technologies.

For instance, Kuehne + Nagel effectively use Blockchain and SCM tools along with KN FreightNet, an online solution that makes placing airfreight orders faster and easier than ever before. Agility GIL has Shipa Freight – a new online platform powered by Agility that makes it easy to get air and ocean freight quotes. And also book, pay, and track shipments online. They’ve also invested into making Blockchain a part of their processes. Panalpina has benefited with their online booking platform and integration of IoT in their supply chain. And, the DHL’s state-of-the-art online booking platform, along with their Blockchain POC, have greatly impacted their profitability.

At FreightBro, we understand the tremendous potential that digital technologies have on businesses. That’s why we’ve developed our tools to be at par with global standards. With FreightBro dashboards and analytics you get all your freight needs satisfied from one intuitive interface.

FreightBro’s dashboard provides you with rate discovery, quote generation, shipment management and a host of other features that make forwarding simple and hassle-free. And, our robust analytics systems are developed to give you actionable insights that allow you to make well-informed business decisions. All of which together help you save time and allow you to focus on the thing that matters most to you — to scale your business to newer heights.

   

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