Dachser, announces ambitious investment plans totaling around EUR 500 million for the year 2024. This decision comes amidst challenges faced by the industry, particularly in air and sea freight, which have experienced overcapacity and declining rates. Despite these hurdles, Dachser remains committed to its strategic expansion and enhancement of networks.
The year 2023 witnessed a shift in the logistics landscape as the industry grappled with weak demand and significant overcapacity. Dachser, like many others, experienced a decline in revenue, which decreased to approximately EUR 7.1 billion, reflecting a 12.5 percent drop compared to the previous year. Transported volumes also saw a decline, with shipments falling by 4.6 percent and tonnage decreasing by 6.5 percent.
Burkhard Eling, CEO of Dachser, acknowledges the challenging market environment but highlights the company’s focus on productivity, capacity utilization, and quality improvement amidst these conditions. He comments, “Against the backdrop of an ailing global economy, supply chains were under considerably less strain in 2023, which allowed us to focus on improving productivity, capacity utilization, and quality.”
Dachser’s strategy for navigating these challenges involves significant investments in acquisitions and joint ventures worldwide. In 2023, the company expanded its global network through strategic acquisitions and joint ventures in various regions, including the Netherlands, Australia, New Zealand, Japan, Italy, South Africa, and Sweden. These ventures position Dachser for growth and resilience in the face of market fluctuations.
Eling emphasizes the company’s deliberate and farsighted approach to investments, citing strategic acquisitions in key markets and the establishment of new footholds in overseas territories. He states, “In 2023, we deliberately took a countercyclical and farsighted approach to investments.”
Looking ahead to 2024, Dachser anticipates modest growth amidst conservative economic forecasts. The company remains committed to its goal of becoming the world’s most integrated logistics provider and will continue to invest in expanding networks, digitalization, climate action, and employee development. With plans to increase investment to over EUR 500 million in 2024, Dachser is poised for strategic growth and resilience in a dynamic market environment.
Business Development Highlights:
- Road Logistics: Despite challenges, Dachser’s Road Logistics business field saw a modest revenue increase of 1.8 percent to EUR 5.8 billion in 2023. The European Logistics segment maintained stability, while the Food Logistics division recorded significant revenue growth.
- Air & Sea Logistics: Weak demand and overcapacity in air and sea freight led to a revenue decline of 46.3 percent in 2023. Despite this, Dachser remains committed to enhancing its capabilities in this segment.
- Contract Logistics: Dachser expanded its Contract Logistics services significantly in 2023, investing in additional capacity and increasing the number of pallet spaces to support its growing operations globally.
In alignment with its strategic objectives, Dachser aims to further integrate its Road Logistics and Air & Sea business fields to capitalize on growth opportunities outside Europe. The company’s workforce grew in 2023, reflecting its expansion efforts and acquisitions in key markets.
