Home » Dimerco Financial Results January, 2024

Dimerco Financial Results January, 2024

by | Feb 6, 2024 | Press Release

Dimerco Express Corporation (5609) today announced the consolidated sales revenue for the month of January 2024. The consolidated sales revenue of January 2024 is NTD 1,901 million. Due to the decrease in freight rates compared to the same period last year, although Dimerco’s ocean freight and airfreight volumes grew by 10% to 30% in January, the revenue for January this year remains the same as the same period last year. However, it is a 1.5% decrease compared to December of the previous year.

In January, the airfreight market faced a cautious atmosphere due to the presidential election, leading to a shortage of demand for cargo space. As a result, the overall export cargo volume in the market decreased by 5% compared to December, and imports also decreased by 10.6%. The entire airfreight market has been in a relatively sluggish state since January, and with slowing cargo demand, airlines may cancel some flights during the Lunar New Year. The traditional peak season for shipments before the Lunar New Year is not evident, and with only 16 working days in February, most inquiries for cargo space demand are currently concentrated after the Chinese New Year.

March is traditionally a peak season, and as industries generally believe that consumer inventory is decreasing, the demand from e-commerce is expected to gradually heat up. An increase in cargo space demand can be anticipated in March.

For the ocean freight market in January, the Red Sea incident led most shipping companies to detour around the Cape of Good Hope, adding 10-14 days to their sailing times. This disrupted the east-west shipping capacity, causing shortages. From late January, many carriers were forced to significantly increase the number of blank sailings. Additionally, other chain effects may continue to emerge, such as the unavoidable congestion in European ports once the disrupted vessels arrive in Europe. This could lead to a shortage of containers in Asia, as the delayed containers cannot be timely transported back. When the market faces a dual pressure of container and vessel shortages, the east-west ocean freight rates to Europe and North America are expected to continue to remain high with frequent adjustments.

While only some carriers on the US East Coast route are affected by the Red Sea incident, the indirect spill-over effects have led to the highest eastbound rates to both the US West and East since the second quarter of 2023. The upward trend in rates is expected to continue after the Lunar New Year shipping rush. With the arrival of the Lunar New Year holiday, carriers will follow past practices and introduce blank sailings in weeks 8, 9, and 10, resulting in an estimated reduction in market capacity of around 35%.

Facing the challenges of the congested transportation of goods due to the Red Sea incident, Dimerco is collaborating with many customers to customize various alternative transportation solutions. This includes solutions such as sea-air through Jebel Ali/Dubai, China-Europe cross-border rail, container transport to the US West Coast combined with road transport or freight forwarder services, and direct airfreight services.

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. Furthermore, with strong relationships with high-quality multinational corporate clients, Dimerco’s airfreight and ocean freight volumes grew by 10% to 30% in January while the revenue for January this year remains the same as the same period last year due to the decrease in freight rates compared to the same period last year.

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). Besides, in this January, Dimerco has aligned ESG goals with Cathay Pacific’s vision on its Corporate Sustainable Aviation Fuel (SAF) Programme, to support the earth with practical action on reduction of greenhouse gas emissions associated with air travel.

Dimerco is dedicated to technological and digital transformation, elevating the level of Information Security Management (ISM). The implementation of the latest ISM and protection framework ensures that information security measures align with the development of digital transformation. Continuous improvement of management and operational processes is undertaken to address the ever-changing external environmental threats. With the development on Digital Platform and Cloud Networking SCM Platform of Dimerco Value Plus System®, flatter organization and ISO 27001:2022 Cyber Security Certification (BSI Certification N0. IS 743553) 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).

Externally, Dimerco 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.

Dimerco_Press_20240206

Spokesperson: Jack Ruan +886 921-062500 / +8862 ‪2796-3660#222
Find out more on Financial Overview.

Post Tags: English