Swiss logistics group Kuehne + Nagel International has reported a 113% increase in third-quarter core earnings, citing robust global demand, but said it does not expect any significant change in the constrained logistics market in the near future.
The disruptions to the global economy during the pandemic have upset supply chains across continents, causing shortages of goods and services from car parts and microchips to container vessels that transport goods across the seas.
Problems such as port congestion and Chinese power shortages have put additional strain on global supply chains.
'Best Possible Logistics Solutions'
"In the current situation with supply chains that are difficult to plan, our Kuehne + Nagel experts are working tirelessly to implement the best possible logistics solutions for our customers," chief executive Detlef Trefzger said in a statement.
"We are on track and were again able to achieve an excellent business result in the third quarter. In the coming months, we do not expect any significant change in the constrained market situation."
Earnings before interest and tax (EBIT) were CHF 789 million, above the CHF 371 million it reported a year earlier, as all business units of the group exceeded their prior-year results.
Sea Freight Gains
Sea freight, the largest part of the group's business, EBIT rose 256% year-on-year as the unit continued to focus on the transport of goods with complex requirements.
In October, Kuehne + Nagel's rival DSV raised its earnings expectations for the year, citing brisk business in the third quarter and continued tight capacity in the market.