Fundamental dependence on the global economy and geopolitics
With air freight, ocean freight and overland transport, our forwarding services cover all major modes of transport for international trade. Volume development in the Global Forwarding, Freight division is therefore fundamentally exposed to the general cyclical shifts in global trade flows and potential external influences, including changes in tariffs and trade agreements. Freight forwarding is provided through purchased transport services, meaning that the development of revenue and costs also significantly reflects the development of the relevant freight rates on the market. This increased volatility in revenue is set against the fact that the division’s business model does not require a significant transportation fleet of its own, meaning that little capital is tied up in its global networks.
Seasonality of business
The Global Forwarding, Freight division is dependent on global trade volumes, which can fluctuate throughout the year. This seasonality is reflected by, among other things, shifts in freight rates and freight volumes and seasonally weaker industrial activity in summer. These factors regularly lead to weaker revenue in spring and summer. In both ocean and air freight, the majority of volumes are generated in B2B. A seasonal surge to stock up inventories therefore occurs ahead of the Christmas season, generally in the third quarter for ocean freight and in the fourth quarter for air freight.
Continuously improving products and services
We aim to design our services to be as user-friendly as possible in the Global Forwarding, Freight division. To do so, we systematically record customer feedback by using the Net Promoter Approach and conducting annual satisfaction surveys. Based upon the information received, we define initiatives and actions aimed at steadily improving our products and services.
Our global network is geared to the highest sector-specific security standards, including TAPA certification and the US initiative CTPAT. Our global transport management system in the Global Forwarding business unit is highly scalable and enables seamless expansion of applications and processes. In the Freight business unit, too, we are increasingly standardizing transport management systems. We have customer interaction tools such as the myDHLFreight portal, which is already running in 28 countries.