million tons in 2018
tons per day
Kuehne + Nagel’s airfreight business continued its outstanding development in 2018. The company increased tonnage by 11.0 percent to 1.74 million tons, thereby once again achieving significantly higher growth than the market. EBIT and conversion rate exceed prior-year levels and reflect the overall very positive development in this business unit. A further improved service portolio with a focus on industry-specific solutions and selective investments were drivers of this success.
In 2018, global e-commerce and the increasing demand for temperature-controlled shipments and time-critical freight led again to an increase in worldwide transport performance in airfeight. However, market volume growth only reached about 2.2 percent, being much below the previous year. This was sparked in part by insecure exporters observing protectionist tendencies globally, as well as increasing fuel prices.
In this environment, Kuehne + Nagel focused again on the expansion of its service offering through acquisitions in particularly fast growing segments. The acquisition of Quick International Courier, one of the major of its kind in the history of Kuehne + Nagel, complements the Group's portfolio with a global leader in time-critical transport and logistics solutions for the pharma & healthcare and aviation industries. Acquiring the business of Panatlantic Logistics SA, an Ecuadorian company specialised in the airfreight transport of perishable goods, Kuehne + Nagel confirms its position in the export market to the United States, Europe and Asia Pacific. With both acquisitions, the company strengthens its presence in high yield growth markets while expanding its industry-specific solutions.
The fact that the slightest delay can lead to high additional expenses illustrates the complexity of refurbishing aircraft cabins. KN InteriorChain is the answer to the challenge of creating highly efficient logistics processes for airlines and suppliers. By continuously enhancing its industry-specific offerings, such as KN EngineChain for production and spare parts logistics and maintenance of aircraft engines, or KN PharmaChain, a transport and logistics solution for pharmaceutical products, the company ensures a steady uplift of its airfreight business.
High-performance digital platforms, such as the AirLOG operational system will continue to serve as a basis for automation and increased efficiency in the future; in 2018, the global roll-out of AirLOG has almost been completed. Enabled by myKN, an integrated customer platform launched end of the year, online bookings via KN FreightNet are set to generate double-digit growth rates. This development will be supported by eTouch offerings that are based on semi-automated solutions and give Kuehne + Nagel a clear competitive edge.