Monday, May 9, 2011

Freight Forwarder And Logistics Provider Reports Profits

DSV Expands Presence in Energy Sector
Shipping News Feature

DENMARK / UK – Danish based DSV has seen first quarter profits rise in line with those of other freight forwarders and logistics specialists and a move to larger premises in a Scottish part of their operation demonstrates the group’s confidence in the expanding UK energy sector.

The ocean and air freight division led the way in the overall gross profit rise by just over 8%, year on year, in the first quarter of 2011, up to Dkr2.3 billion on revenues of Dkr10.7 billion (US$2.1bn), itself an 11.7% increase against the 2010 figure. DSV’s sea and air activities are centred on Asia to Europe and US trade, plus project forwarding activities and together a 12.7% year on year rise in profits was achieved for the period.

As with other freight forwarders reporting profits a slight dip in TEU was credited to the fluctuation of exchange rates and the company’s road freight activity first-quarter gross profit margin was lower this year, than last. This reflected strong influence on the market from price competition and high-capacity utilisation levels by hauliers.

DSV believe surplus capacity in the warehouse sector results in the continued trend of fierce price competition and reports the operator’s solution division which deals with activities such as freight management, outsourcing of warehousing and customs clearance and distribution shows a resultant smaller increase with profits up only 4.5%.

One sector that seems to be doing well is that of energy and DSV has relocated its Air & Sea (Projects) into new, larger offices in Aberdeen as a result of expansion of its work load in the oil and gas market in the region. Air & Sea already has a strong presence in the energy sector in Norway, Italy and Denmark and the team in the new office, on the 11th floor of the Salvesen Tower on the port, already handles a range of exports from the UK for the energy markets worldwide but specifically in West Africa, Australia, Singapore and Houston. Graham Roper, Project Manager, DSV Air & Sea Ltd commented:

“We are also handling some significant imports, including wind farm equipment for projects in the Clyde on behalf of DSV Denmark, but we want to expand our presence in the energy business,”