German logistics company, Dachser’s accounts show that it is continuing its growth pattern, with a reported gross revenue of €5.71 billion in 2016, a 1.7%n increase on the year before.
According to figures just published by the company, the number of shipments rose by 2.4% to 800 million, while metric tonnage went up in parallel to 38.2 million metric tons.
This growth was driven by European overland transport as well as food logistics, and came int he face of challenging market conditions, said the company.
“Despite the volatility of the global economy, we were able to maintain our stable market position through organic growth at the previous years’ levels, while simultaneously developing solutions for tomorrow’s market,” says Dachser CEO Bernhard Simon.
Road logistics accounts for 75% of Dachser’s total revenue, in which the European logistics line profited from the company’s consistent export strategy, resulting in a 2.4% increase in gross revenue to €3.5 billion. Meanwhile, shipments and tonnage increased by 2.2 and 2.3%, respectively.
Dachser food logistics achieved the highest growth rate, not for the first time,, with revenue increasing by 9.5% to €812 million. This was buoyed primarily by strong domestic business in Germany’s consumer goods sector, and the European Food Network for cross-border food transport.
With thirteen partners, ten associate members, and regular line haul services among 34 countries, the Food Network has the greatest geographic coverage in Europe.
“Our market-leading level of quality and the positive effects of the European Food Hub in Erlensee near Frankfurt contributed to this satisfying growth,” said Simon.
In the Dachser Air & Sea Logistics business field, revenue fell by 3% percent to €1.54 billion, while the number of shipments remained constant. This decrease in revenue was due to low international freight rates, especially in sea freight, and negative currency effects. “We know how to deal with the volatile nature of international air and sea freight, and are consistently expanding this business field,” says Simon.
On the back of this positive report, Dachser has increased the volume of its planned investments from €125 million in 2016 to €177 million in 2017, with the main focus of investment in expanding network locations, IT systems, and research and development.
“We are intensively studying all aspects of the logistics solutions of the future and the extent to which they can be digitalised. Dachser has launched group-wide innovation processes at numerous levels in order to maintain its pioneering role in the industry,” Simon said.
The logistics provider has also been investing in the expansion of its contract logistics services, creating more than 350,000 square meters of additional warehouse space providing room for over 300,000 pallets in the past two years alone. Dachser can thus now offer its customers over two million pallet spaces in almost 200 warehouses on four continents.
