Kuehne + Nagel Air Logistics Demand Gets Boost From Red Sea Disruption

By Dominic Chopping

Kuehne + Nagel benefited from improving demand for air logistics during the second quarter, when supply chains became more congested during continued disruptions in the Red Sea.

Container operators have been forced to send their vessels on longer, more expensive routes around southern Africa's Cape of Good Hope to avoid the Red Sea after Houthi rebels began attacking commercial vessels at the end of last year, creating a shortage of vessels despite continued strong demand.

The Swiss logistics company said earnings were supported by cost-efficiency measures launched earlier this year, while a previously announced organizational reshuffle allowed for efficiency gains and improved customer proximity.

The company has discontinued its regional structure, creating a new direct reporting line of its units to simplify responsibilities, allow quicker responses to rapidly changing market developments and allowing business decisions to be implemented faster.

The company reported a net profit of 288 million Swiss francs ($323.7 million) in the second quarter of 2024, down from CHF400 million in the same period a year earlier, while turnover rose 1.2% to CHF6.05 billion.

Analysts polled by FactSet had expected net profit of CHF286 million on turnover of CHF6.1 billion.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 23, 2024 01:32 ET (05:32 GMT)

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