Dimerco Express Corporation (5609) today announced the consolidated sales revenue for the month of November 2023. The consolidated sales revenue of November 2023 is NTD 1,960 million, a decrease of 22.3% compared to November 2022, and an increase of 0.8% compared to previous month, as the highest month of this fiscal year. The consolidated sales revenue of November 2023 YTD is NTD 19,570 million, a decrease of 49.2% compared to the same period last year.
For the airfreight market in November, despite the gradual increase in passenger flights between China and the United States since November 9, which has boosted the belly cargo capacity, the actual increase in freighter capacity is limited. This is due to strong demand for passenger flights, which has also occupied a significant amount of cargo space. Additionally, the demand for airfreight from Asia to the United States is expected to remain strong throughout the period from mid-November to the Lunar New Year due to factors such as e-commerce, the demand for electronic products, and disruptions caused by the volcanic eruption in Anchorage and snowstorms.
Besides, several airlines have canceled cargo flights between Asia and the United States, leading to a substantial increase in air freight rates on the Asia-to-US route. This situation has resulted in an increased demand for ad-hoc charter flights. Moreover, the urgent demand for shipments related to Black Friday, Christmas, and New Year’s holidays in the United States is anticipated to keep the demand for airfreight from Asia to the U.S. robust, despite the Christmas and New Year holidays in late December.
As for the ocean freight market in November, despite a strong rebound in China’s ocean export goods in October, the ocean freight market weakened noticeably in November. China’s manufacturing Purchasing Managers’ Index (PMI) dropped from 50.2 in September to 49.5 in October, even lower than the 49.7 index in August. This decline might explain why the freight rate increases implemented by container shipping companies on the Trans-Pacific Eastbound and Europe Westbound routes in early November were not very successful. After maintaining for a week or two, the increased rates sharply fell, with decreases exceeding 23% and 40% on these routes, respectively. To prevent further rate declines, many container shipping companies have announced comprehensive rate increases effective from December 1, with increases of approximately 15% and 55% on the Trans-Pacific Eastbound and Europe Westbound routes, respectively.
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 with the increasing demand of eCommerce growth in China and AI Supply Chain product from Asia to USA. 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 November.
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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