Kuehne+Nagel (K+N) Dominates Air Freight Market in 2023
Kuehne+Nagel (K+N) retained its position as the world’s leading air freight forwarder in 2023, outperforming DHL Global Forwarding despite significant market challenges. According to consultant Armstrong and Associates, K+N experienced an 11.2% decline in cargo volumes, handling 2 million tonnes for the year
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DHL Global Forwarding and DSV Face Volume Declines
DHL Global Forwarding, ranking second, saw a 12.1% decrease to 1.7 million tonnes. DSV, placed third, reported a 16.2% decline to 1.3 million tonnes. DB Schenker, in fourth place, registered a 13.4% drop to 1.1 million tonnes. The overall market pressures were evident across these leading forwarders.
E-commerce and Geopolitical Events Boost Q4 Demand
Despite early-year struggles, the airfreight market rebounded in the final quarter of 2023 due to increased e-commerce activity and the Red Sea crisis affecting ocean shipping. K+N’s annual report highlighted a surge in export demand from China, driven by the e-commerce boom, which put pressure on yields.
DSV’s Focus on High-Yield Cargo
DSV attributed its performance to a strategic focus on high-yield cargo and pricing discipline. This approach resulted in a below-market airfreight volume performance but maintained profitability amidst challenging conditions.
Top 25 Forwarders See Overall Volume Decline
The top 25 airfreight forwarders collectively saw a 9.8% year-on-year drop in cargo volumes, totaling 15.3 million tonnes in 2023, as per Armstrong and Associates. Inflationary pressures and a modal shift back to ocean freight contributed to weaker consumer spending and overall market contraction.
US and Japanese Forwarders Follow European Trends
US and Japanese forwarders mirrored the performance of their European counterparts, grappling with reduced consumer spending and inflation. Japanese firms, in particular, faced a tough year due to economic struggles, including two consecutive quarters of GDP decline and a three-quarter drop in domestic demand.
China-Based Forwarders Experience Growth
Conversely, Chinese forwarders had a strong year as the country’s economy reopened, recovering from the challenges of 2022. Sinotrans, China’s largest forwarder, posted a 15.5% increase in volumes to 902,000 tonnes, benefiting from the surge in e-commerce airfreight.
Impact of Mergers and Acquisitions
Mergers and acquisitions played a significant role in shaping the 2023 airfreight landscape. Bolloré Logistics saw a 10.3% decline in volumes, influenced by the separation of its African logistics business and subsequent merger with CMA CGM’s CEVA Logistics. This restructuring will reflect in the 2024 rankings.
Maersk Logistics’ Remarkable Growth
Maersk Logistics emerged as the fastest-growing forwarder in percentage terms, climbing from the 25th to the 16th position. The Danish company’s volumes increased by 39.5% to 295,000 tonnes, driven by its acquisition of Senator International and Pilot Freight Services. These acquisitions, completed in mid-2022, allowed Maersk to benefit from a full year of integration in 2023.
Conclusion: A Dynamic Year for Airfreight
2023 was a year of significant challenges and dynamic shifts in the airfreight forwarding industry. Leading companies like K+N and Maersk Logistics demonstrated resilience and strategic growth, while the overall market adjusted to evolving economic conditions and consumer demands. The coming year will likely see continued transformations as the industry adapts to new opportunities and challenges.
