DACHSER LAUNCHES NEW SERVICE PROVIDING UK EXPORTERS WITH FRICTIONLESS EU MARKET ACCESS.

Northampton – 10 April 2024 : DACHSER have today announced the formal launch of their new Smart border connect services, connect40 and connect42. These services will provide UK exporters, shipping on DDP incoterms, with frictionless access to DACHSER’s quality market leading European groupage network which transported 65.7million intra European shipments in 2023.

Commenting on the launch the UK and Ireland Sales and Commercial Manager, Mark Cosgrove said: “As more and more UK exporters chose to minimise the impact of post Brexit trading conditions on their EU customers by shipping on DDP incoterms DACHSER has developed a scalable, cost-effective solution, to meet this growing demand.”

Since Brexit DACHSER has created many bespoke customer DDP solutions, however Smart border connect is designed to give UK exporters, of all sizes frictionless access to what has always been its most important asset, Europe’s quality market leading groupage network.

Smart border connect was piloted at the beginning of February, and since then there has already been huge demand from both existing and new customers. Many have now taken the decision to renegotiate their existing DAP incoterms to DDP to take advantage of the fastest transit times in the market.

UK Export Market Perspective

 “From an overall market perspective, we are entering an important new phase in post Brexit UK / EU distribution trends,” continued Cosgrove,  “Customs solutions are no longer the primary driver of customer procurement consideration, and we return to the historic logistics purchasing drivers of speed to market (i.e., transit times) and quality of service allied with competitive pricing.”

DACHSER is convinced that the new Smart border connect services will assist UK exporters in regaining and maintaining their competitiveness on an even playing field with their European competitors in what are incredibly challenging global economic conditions.

About DACHSER

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide.

Thanks to some 34,000 employees at 382 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 7.1 billion in 2023. The same year, the logistics provider handled a total of 77.4 million shipments weighing 40.0 million metric tons. Country organizations represent Dachser in 43 countries. For more information about Dachser, please visit dachser.com

• Investments in several acquisitions and new joint ventures worldwide. 
• European overland transport provides stability; air and sea freight suffers from overcapacity and decline in rates.
• Investments totaling around EUR 500 million are planned for 2024.

Kempten/Munich, March 21, 2024 – After the economic boom in logistics resulting from the coronavirus pandemic and worldwide disruption to supply chains, normalcy returned to the industry in 2023. Dachser was among those whose financial year was marked by weak demand for logistics services in the face of significant overcapacity and a sharp decline in air and sea freight rates.

As a result, Group revenue decreased to some EUR 7.1 billion, 12.5 percent down on the previous year. Transported volumes fell by 4.6 percent to approximately 77.4 million shipments, while tonnage decreased by 6.5 percent to some 40.0 million metric tons.

“Against the backdrop of an ailing global economy and a challenging market environment, supply chains were under considerably less strain in 2023, which allowed us to focus on improving productivity, capacity utilization, and quality. At the same time, we made considerable investments in the expansion of our networks,” says Burkhard Eling, CEO of Dachser.

Compared to the last pre-crisis year 2019, turnover in 2023 was over 25 percent higher. At that time, Dachser had reported turnover of around EUR 5.7 billion.

Significant expansion of the global network

In 2023, 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). Of these, only the acquisitions in the Netherlands and Oceania in the first half of the year feature in the revenue figures for 2023.

“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. In 2023, Dachser invested more than EUR 244 million; it plans to increase that figure to over EUR 500 million in 2024.

Business development in detail

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 percent to EUR 5.8 billion in 2023. By way of contrast, the number of shipments fell by 4.7 percent and transported tonnage by 6.5 percent.

The European Logistics business line generated revenue of EUR 4.4 billion, roughly on a par with the record year of 2022. Business was good across European business units, with Iberia coming out on top with a revenue increase of more than 2 percent. Shipment numbers and tonnage declined overall due to Germany’s weak economy, which also had a negative impact on the close-knit countries in the North Central Europe region.

The Food Logistics business line also had a successful financial year in 2023, recording a 9.7 percent increase in revenue to EUR 1.4 billion. This jump in revenue stemmed from positive business development at branches in Germany as well as from inorganic growth through the acquisition of Müller Fresh Food Logistics in the Netherlands and the purchase of the remaining shares in Dachser Hungary. In total, Dachser Food Logistics transported 10.9 million shipments, slightly more than in the previous year, while tonnage fell by 3.8 percent.

In the Air & Sea Logistics business field, the combination of weak demand and substantially more capacity in air and sea freight had a profound effect. Plummeting freight rates were responsible for a drop in revenue of 46.3 percent—compared to 2022—to EUR 1.3 billion. The number of shipments rose by 2.4 percent, while tonnage fell by 7.9 percent.

Contract Logistics—a combination of transport, warehousing, and customer-specific value-added services—also underwent large-scale expansion in 2023. Dachser invested in additional capacity during the year and increased the number of pallet spaces to just under 400,000. Dachser now offers a total of more than 3 million pallet spaces across 164 warehouse locations on five continents.

Looking to the future, Eling announced 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’.”

Dachser’s workforce grew in 2023 by more than 1,100 people to a total of approximately 34,000. This is a reflection of the expansion of sales and IT teams, as well as the acquisitions of Müller Fresh Food Logistics and ACA International.

Overview of revenue:

About Dachser

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide.

Thanks to some 34,000 employees at 382 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 7.1 billion in 2023. The same year, the logistics provider handled a total of 77.4 million shipments weighing 40.0 million metric tons. Country organizations represent Dachser in 43 countries. For more information about Dachser, please visit dachser.com