DHL sees H1 profits plummet, but XPO gains momentum in North America
There was a mixed bag of first-half results for two global logistics operators this week: ...
AMZN: APPEAL UPDATEDSV: PRESSURE BUILDS AAPL: OPENAI FUNDING INTERESTCHRW: ANOTHER INSIDER CASHES INHLAG: GRI DISCLOSUREMAERSK: HOVERING AROUND FOUR-MONTH LOWSTSLA: CHINA COMPETITIONDHL: BOLT-ON DEAL TALKAMZN: NEW ZEALAND PROJECTDHL: SURCHARGE RISKKNIN: LEGAL RISKF: 'DEI' HURDLESPLD: RATING UPDATEXOM: DISPOSALS
AMZN: APPEAL UPDATEDSV: PRESSURE BUILDS AAPL: OPENAI FUNDING INTERESTCHRW: ANOTHER INSIDER CASHES INHLAG: GRI DISCLOSUREMAERSK: HOVERING AROUND FOUR-MONTH LOWSTSLA: CHINA COMPETITIONDHL: BOLT-ON DEAL TALKAMZN: NEW ZEALAND PROJECTDHL: SURCHARGE RISKKNIN: LEGAL RISKF: 'DEI' HURDLESPLD: RATING UPDATEXOM: DISPOSALS
Here is the latest update concerning ocean freight market trends by DHL Global Forwarding:
Carriers financial performance continued to be positively impacted by stable freight rates and low bunker prices in Q1 2020 while volumes were down only marginally at the beginning of the year.
Rates are however coming under pressure as volumes are negatively affected by the COVID-19 lockdowns across all regions which will hit the second quarter. Maersk expects total liftings to fall by 20-25% in that quarter.
Also higher variable costs including storage costs resulting from the COVID-19 pandemic will impact earnings.
So far carriers were able to avoid the collapse of freight rates by reducing capacity. Drewry therefore observed that decrease in rates is much less than the steep slide during the 2008 financial crisis.
Although some unblankings are now announced, SeaIntelligene Consulting founder Lars Jensen does not believe that this is a sign of returning demand but rather a sign that the enormous amount of capacity withdrawals was slightly overdone.
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