Dachser invests despite revenue falls

News Story
- 28 Mar 2024 ( #1172 ) - Kempten, Germany
2 min read
Dachser has pushed ahead with investments
Dachser has pushed ahead with investments

Family-owned German logistics multinational Dachser has been affected by weak demand for logistics services in the face of significant overcapacity and a sharp decline in air and sea freight rates.

Group revenue for 2023 dropped 12.5% to EUR7.1 billion (USD7.68 billion).

Despite the fall, Dachser has pushed ahead with investments in the expansion of its networks.

CEO Burkhard Eling notes that the company made strategic acquisitions and established new joint ventures in the Netherlands (Müller Fresh Food Logistics), Australia and New Zealand (ACA International), Japan (50% joint venture Dachser Japan), Italy (80% joint venture Dachser & Fercam Italia), South Africa (100% share acquisition Dachser South Africa) and Sweden (Frigoscandia). 

"In 2023, we deliberately took a countercyclical and farsighted approach to investments: we completed our European groupage network in Italy with the third-largest acquisition of our company history. We tapped key food logistics markets in the Benelux and Nordic countries. Moreover, we now have our own locations in the large overseas markets of Japan and Australia," Eling says.

Given the conservative economic forecasts, Dachser still expects low volumes and only slight revenue growth in 2024. "In pursuit of our goal of becoming the world's most integrated logistics provider, we are continuing to invest in expanding and enhancing our networks, in digitalization, in climate action and of course in our employees," Eling says. 

Dachser's Road Logistics business field—which comprises the transport and warehousing of industrial and consumer goods (European Logistics) and food (Food Logistics)—increased its revenue by 1.8%;  the European Logistics business line performed roughly on a par with the record year of 2022 and the Food Logistics business line recorded a 9.7% revenue increase  while Air & Sea Logistics business field was perhaps hardest hit, with a 46.3% drop in revenue.

Looking to the future, Eling says that Dachser will focus even more on closely integrating the Road Logistics and Air & Sea business fields. "In the coming years, significant growth impetus will come from markets outside Europe. In order to continue serving our customers worldwide with high quality and reliability, we are linking the processes and systems of our two business fields even more closely together in order to develop an integrated global, door-to-door groupage solution that we call 'Global Groupage'."

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