DB Schenker emerged as a standout performer for Deutsche Bahn in the first half of 2024, despite the parent company facing financial challenges. The German logistics provider reported a 6.6% decline in revenues year-on-year, totaling €9.4 billion, while adjusted earnings before interest and tax (EBIT) fell by 16.9% to €520 million. Notably, airfreight volumes saw a modest increase of 1%, reaching 576,100 tonnes.
However, this growth in airfreight volumes lagged behind competitors Kuehne+Nagel and DSV, which recorded increases of 7.3% and 10% in the second quarter, respectively. DB Schenker attributed its performance to the overall growth in e-commerce demand, although it acknowledged its relatively low market share in this segment.
“The airfreight market in the first half of 2024 can be divided into two segments: the new e-commerce business from China and the traditional airfreight market,” Deutsche Bahn explained. “While the traditional market showed only slight growth in the first quarter, the inclusion of the e-commerce segment led to nearly double-digit growth.”
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The company noted that the e-commerce boom has created significant regional disparities in demand, resulting in global freight rate increases, though these fluctuations vary widely by region. DB Schenker’s EBIT decline was partially attributed to falling freight rates outside the rapidly expanding e-commerce sector in China. “In airfreight, rates remained stable or declined outside of Asia/Pacific, where DB Schenker’s presence is limited,” the company added.
While expenses in air freight decreased, they did not drop as sharply as revenues, reflecting the challenging market conditions.
Deutsche Bahn also provided a brief update on the potential sale of DB Schenker, stating that the process for selling up to 100% of the shares is proceeding as planned. The outcome remains uncertain, but the Supervisory Board has resolved that any proceeds from a sale should be retained within the DB Group to significantly reduce its debt. A sale would only be pursued if it is economically beneficial for the group.
Recent reports indicate that Bahri has withdrawn from the bidding, leaving DSV and a private equity consortium led by CVC as the remaining contenders.
Overall, the Deutsche Bahn Group reported a first-half EBIT loss of €677 million, attributing this loss to strikes, severe weather conditions, and necessary infrastructure investments.
