DSV Air & Sea segment outperforms in 2020

Third-party logistics company DSV today reported year-over-year financial gains for 2020 in revenue and operating profit on a companywide basis and for its Air & Sea operations. The company’s 2020 report attributed the improvements to the successful completion of its integration with Panalpina. [caption id="attachment_89849" align="alignright" width="450"] DSV teamed with Cargolux on the legacy Luxembourg to Huntsville route. Photo courtesy of DSV.[/caption] The 3PL reported 61% YoY growth in operating profit, or EBIT, for the Air & Sea division in 2020. The division vastly outperformed the Road and Solutions divisions, which grew YoY by 12% and 19%, respectively, and make up a much smaller share of DSV’s business. The Air & Sea division reported EBIT of $1.14 billion in 2020, while DSV reported a total EBIT of $1.55 billion across its divisions. The significant improvement in Air & Sea EBIT resulted from both the Panalpina integration and cost reductions during 2020. Freight volumes for the division were “impacted negatively” due to capacity reductions from the COVID-19 pandemic, according to the report. But DSV still reported airfreight volume growth of 19% YoY for 2020, thanks to the integration with Panalpina. The sector’s profitability was also helped by steep transportation rates, particularly in airfreight, the report stated. Looking ahead, DSV’s outlook for 2021 assumes a largely stable market of “continued gradual recovery of the global economy after the COVID-19 crisis,” according to the report. Meanwhile, staffing in the division and across the company fell significantly during the year. YoY staffing numbers had jumped in 2019 with the Panalpina acquisition but the company has since reduced its headcount as part of the integration, and in response to the pandemic. The total number of employees declined by 7.5% YoY to 56,621 in 2020. In the Air & Sea division, the number of full-time employees at the end of 2020 had fallen by 16.3% YoY to 18,008. After combining with Panalpina, DSV was ranked the second-largest freight forwarder by airfreight tonnes in Air Cargo World ’s most recent Power 25 ranking.

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DSV Air & Sea segment outperforms in 2020

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