Home » Dimerco Financial Results December, 2023

Dimerco Financial Results December, 2023

by | Jan 8, 2024 | Press Release

Dimerco Express Corporation (5609) today announced the consolidated sales revenue for the month of December 2023. The consolidated sales revenue of December 2023 is NTD 1,929 million, a decrease of 15.8% compared to December 2022, and a decrease of 1.6% compared to previous month. The consolidated sales revenue of December 2023 YTD is NTD 21,500 million, a decrease of 47.3% compared to the same period last year.

For the airfreight market in December, the Taiwan Manufacturing Purchasing Managers’ Index (PMI) remains at 46.8%, unchanged from the previous month, and the future outlook index has been on the rise for two consecutive months. In the electronics industry, after year-end inventory checking and rushing urgent orders, companies are awaiting geopolitical changes after elections to adjust their production lines and product layouts. As a result, recent indicators for new orders and production have experienced a decline. The manufacturing sector has positive expectations for the U.S., Mexico, the EU, and the Indian markets this year, leaning towards a more conservative stance for the Chinese market. The recent Red Sea crisis primarily impacts the supply side, causing short-term fluctuations but is not expected to significantly affect freight rates and inflation conditions, with a focus on long-term demand.

Despite natural and man-made disasters affecting the world’s two major canals, demand for sea-air transportation is not prominent. As we enter January 2024, traditionally a month where air freight tends to slow down after December, three major variables, including election years in various countries, climate change causing food issues, and the timing of inflation and interest rate changes in the United States, will impact global capital flows. Promising industries for this year include artificial intelligence (AI) and the information and communication technology (ICT) industry. The advent of generative AI is expected to drive a wave of upgrades in personal computers (PCs) and smartphones. However, the improvement in the machinery and textile industries remains to be observed. In the air freight sector, continued observation and pursuit of opportunities in high-tech, energy control, semiconductor, consumer electronics, electric vehicles, telecommunications, and the cross-border e-commerce market are emphasized.

As for the ocean freight market in December, shipping companies continued with a similar blank sailing strategy as in November. Both the trans-Pacific eastbound and the Europe westbound, the two major routes, experienced a reduction in capacity of approximately 10% to 20% per week in December. The freight rate increases implemented on December 1st and 15th were successfully executed due to a significant increase in market demand. This has instilled confidence in most freight operators to push for freight rate hikes before the Lunar New Year.

Recent developments, such as a substantial drop in water levels in the Panama Canal due to prolonged drought, have led to a tighter capacity situation on routes to the U.S. East Coast compared to the West Coast. The uncertainty caused by the recent terrorist attack in the Red Sea has directly impacted all routes passing through the Strait of Mandeb. Although the three major shipping alliances, 2M, Ocean Alliance, and THE Alliance, promptly took contingency measures by rerouting westbound routes from Asia to Europe and certain North American East Coast routes around the Cape of Good Hope instead of traversing the Suez Canal, the indiscriminate terrorist attack by the Houthi group on commercial ships has once again posed a crisis to the international supply chain. In response to the potential disruption, Dimerco has prepared various alternative solutions, including air freight, sea-air service, and Cross-Border Rail Transport via the China-Europe freight train, to assist import and export businesses in navigating the crisis efficiently and swiftly.

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, 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 in both air & ocean freight volume with revenue in December.

After the ISO 14064-1:2018 verification at the end of 2022 and declaration of commitment to green supply chain and carbon reduction goals to reduce the carbon footprint, Dimerco has taken further steps in 2023. Implemented the EcoTransIT World system certified by the international organization Smart Freight Centre (SFC), Dimerco utilizes this system to calculate carbon emissions for air, sea, and land transportation, aligning with the Global Logistics Emissions Council (GLEC) framework and meeting the requirements of the GHG Protocol (corporate standards).

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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