Dimerco Express Corporation (5609) today announced the consolidated sales revenue for the month of August 2023. The consolidated sales revenue of August 2023 is NTD 1,706 million, a decrease of 50.3% compared to August 2022, and an increase of 0.1% compared to previous month. The consolidated sales revenue of August 2023 YTD is NTD 13,848 million, a decrease of 53.9% compared to the same period last year.
According to IATA, for the airfreight market in August, due to the demand for summer vacation, passenger flights in the Asia-Pacific region have recovered to 65.3% of the 2019 level while there is ample capacity with stable airfreight rate. On the other hand, airfreight demand from Asia to the United States has increased due to the growth in eCommerce, resulting in higher airfreight rate. Additionally, Apple is set to launch new products in September and the upcoming AI servers are expected to significantly increase airfreight demand from China, Vietnam, India, Taiwan to the United States and Europe, leading to an anticipated increase in airfreight demand in the fourth quarter.
As for the ocean freight market in August, most long-haul shipping routes have seen a significant increase in shipping rates due to ongoing reductions in shipping capacity by ocean carriers. According to data from Sea-Intelligence, after a 14.7% reduction in capacity on Trans Pacific routes to the US West Coast in June, shipping companies further reduced capacity by 21.7% in July. It is expected that shipping carriers will continue to reduce the number of scheduled sailings by about 9% – 10% in the coming weeks. Besides, the reduction in shipping capacity in August effectively pushed up shipping rates, although it was not as prosperous as in previous peak seasons. While carriers initially attempted to raise rates by 75% on westbound routes from Europe in early August, they eventually rolled back to a 35% increase. On the contrary, importation from Asia to the United States has been relatively steady, with five consecutive months of growth to reach 1.46 million TEUs in July. This is why Trans Pacific route rates have remained relatively stable and continued to rise by around 15% in early September.
Due to Dimerco’s global network of forwarding and logistics locations and our cloud-based SCM international logistics service platform with clear market positioning and effective digital marketing to attract customers, Dimerco has been able to deliver solid results. Besides, especially in response to the US-China tensions and considering geopolitical risks, many European and American customers have been requesting manufacturers to adopt a “China plus one” policy. This involves relocating some production lines to Southeast Asia and India. As a result, regional freight volumes have increased. Companies like Dimerco have benefited from having established long-term marketing and service points in Southeast Asia and India, which has led to significant business growth. Furthermore, with strong relationships with high-quality multinational corporate clients, Dimerco has been able to sustain growth even when facing economic recession risks in Europe and the United States, as businesses seek to reduce inventory.
With the development on Digital Platform and Cloud Networking SCM Platform of Dimerco Value Plus System®, flatter organization and ISO 27001 Cyber Security Certification by BSI, Dimerco internally upgrades digital capability to strengthen operation & management efficiency and cost-effective solutions for our customers with mobility via application of Robotic Process Automation (RPA) while externally upgrades online services and integrates off-line & online services via its upgraded MyDimerco platform and POMS (Purchase Order Management System) to further enhance customer services. The services include not only the coordination of purchase orders between customers and their suppliers, supplier performance management, product management, and logistics cost analysis but also online booking of cargo space and online customer support, through various channels, regardless of when or where they need assistance.
Looking to the future, through promotion with digital marketing and clear market positioning from brick-and-mortar to online platform, Dimerco enhances not only on supply chain value to customers and business development but also on additional benefits and productivity to worldwide network via application of Semi-Automation during its Digital Transformation to meet our customers’ needs and achieve our business goals.
Spokesperson: Jack Ruan +886 921-062500 / +8862 2796-3660#222
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