Agility reports decline in profit despite airfreight gains

Kuwait-based Agility Logistics reported a cumulative negative impact from the coronavirus pandemic during the first half of 2020, with overall net profit down 61.3% year over year to 16.2 million Kuwaiti dinars ($53.1 million). Across Agility’s Global Integrated Logistics (GIL) division, revenue was strong for contract logistics, project logistics and airfreight segments, but fell in the ocean freight and the fairs and events segments. Agility’s vice chairman and CEO Tarek Sultan described the effects of the pandemic on the company’s various business units as “uneven,” with several of the GIL segments performing well, while some segments in the Infrastructure group suffered financial setbacks. See also: Cargo Chat: Agility Logistics on post-COVID cargo capacity “Our contract logistics business and logistics parks have weathered this reasonably well because demand for storage space has been steady or increased, especially as customers have looked to add to safety stock or support pandemic-driven increases in e-commerce sales,” Sultan said in a press release. He added, “Other Agility businesses, such as aviation and airport operations have been directly impacted by the decline in air travel and traffic and are now pivoting towards the development of pioneering new technologies that will be essential to the re-enablement of global travel.” In terms of Agility’s airfreight logistics business, despite a 23.6% YoY decrease in tonnage, yields were higher due to capacity shortages and demand for urgent shipments of personal protective equipment and other medical equipment. Higher yields contributed to a 17% YoY increase in airfreight revenue for the first half. The 3PL provided little guidance for the remainder of the year, citing the “many possible scenarios and many unknowns” resulting from ongoing uncertainty about the global trajectory of the pandemic. However, Sultan said the company is focusing on “disruptive enablement for logistics, and expansion into new market segments like e-commerce,” which he said are “more important than ever” in adapting to the tumultuous economic environment. Agility has prioritized expanding its digitalization of logistics since well before the pandemic began. The company invested $100 million in online logistics platform Shipa.com in 2018, offering services around e-commerce, deliveries and freight forwarding. Agility ranked at No. 14 in the most recent Power 25 ranking of the world’s top airfreight forwarders based on 2019 tonnage. Agility, listed as AGLTY on Kuwait’s stock exchange Boursa Kuwait, last traded at 0.627 Kuwaiti dinars as of market close Aug. 17 and has a market capitalization of 1.23 billion Kuwaiti dinars ($4 billion).

Agility reports decline in profit despite airfreight gains

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