net turnover in 2018
In 2018, Kuehne + Nagel continued the prior years’ successful development of the overland business unit with industry-specific, regionally diversified and digitally supported service offerings. The company once again increased turnover, gross profit and EBIT significantly. Business in European groupage and less-than-truckload shipments were primary growth drivers, as well as intermodal shipments and transport management for key customers in North America. Specialised solutions in event logistics for major events and for the pharma & healthcare industry also contributed to this success.
At the same time, the operating environment in overland was challenging: In the core markets USA and Europe rates further increased; capacity bottlenecks and a continued shortage of drivers marked the European business environment. In addition to being highly fragmented, the overland market is shaped by a variety of trends. While on-time delivery is the critical factor in less mature markets, customers in the more mature European markets tend to select service providers who can contribute positively to network optimisation. This is where Kuehne + Nagel can demonstrate best its expertise. Based on customer-specific requirements, market data and logistics know-how, experts plan and implement efficient and flexible logistics networks.
The further expansion of digital expertise and services will continue to be a strategic focus for overland in the coming years. As part of the company-wide eTouch strategy, Kuehne + Nagel has set itself the goal to considerably increase the percentage of automated overland shipments by 2022, thereby contributing significantly to raise efficiency. Thus, the company’s online quotation, booking and tracking platform, KN FreightNet, is set to continue gaining ground. An additional key priority is the e-commerce business in the USA. Due to a sustained high demand for temperature-controlled overland shipments, Kuehne + Nagel has already started to expand its pharma trailer fleet which will become the largest in Europe.
In addition to the successful upgrading of the transport management system in Europe, the systems in North America are being consolidated in the current year. Asia will pilot an end-to-end digital system starting mid-2019. In the very attractive segment of customs clearance, which has been part of the overland business unit since 2018, the focus will be on the introduction of an IT system for North America to further increase productivity.