Today, Hong-Kong based 3PL Kerry Logistics released its H1 2018 interim results, which show a 22 percent year-over-year increase in core net profit to about US$89 million.
“Although the world economy experienced growth in H1 2018, global demand has been flat,” said William Ma, group managing director of Kerry Logistics. “Nevertheless, the China-U.S. trade dispute has caused manufacturing capacities to shift from Mainland China to other Asian countries, bringing about an increase in shipping volume and production activities in Asia,” especially Southeast Asia.
Chairman George Yeo built on this narrative, explaining that “certain markets in Asia are likely to benefit conversely from the increased intra-Asia trade as customers look for alternative supply sources beyond Mainland China and the U.S.” However, the company also said that rising labor costs, “subpar performance of certain customers in the electronics sector,” and the China-U.S. trade conflict detracted from performance in its mainland China section of business.
Kerry Logistics completed phase two of its Kerry Bangna Logistics Centre in Thailand and phase one of the inland ports in Mandalay, Myanmar, during H1 2018. Its upcoming logistics facilities in Changsha and Wuhan in mainland China and Guanyin in Taiwan are still under construction.