Dimerco Express Corporation (5609) today announced the consolidated sales revenue for the month of October 2023. The consolidated sales revenue of October 2023 is NTD 1,945 million, a decrease of 32.6% compared to October 2022, and an increase of 7.1% compared to previous month. The consolidated sales revenue of October 2023 YTD is NTD 17,611 million, a decrease of 51.1% compared to the same period last year.
For the airfreight market in October, Due to China’s National Day Golden Week at the beginning of October and increased inventories in the United States in preparation for the Black Friday shopping season, airfreight capacity from China and Southeast Asia to the U.S. remains tight. As a result, airfreight rate has consistently remained at higher levels, while other Asian routes maintain stability. It is anticipated that the demand for cargo space on the mentioned routes will continue to be strong from mid-November until the Lunar New Year.
Tensions such as the Israel-Palestine conflict and the Russia-Ukraine conflict have not significantly impacted the airfreight market from Taiwan and China to Europe. Additionally, due to Lufthansa (LH) joining cargo operations for the Taiwan-Germany route at the end of October, the demand and pricing for cargo space from Taiwan to Israel and various European destinations have been generally stabilized. Comparatively, the airfreight rate from Taiwan to Europe is approximately around NTD$110 per kilogram, whereas to the United States, it ranges from NTD$130 to 140 per kilogram.
Furthermore, with various countries adopting the “China plus one” strategy, the demand for air freight markets from Taiwan, Hong Kong, China, Southeast Asia to India has not experienced a low season this year. Dimerco continues to strengthen its investments and services in air and ocean transportation and warehousing for India to meet the robust market demand. Looking ahead to 2024, the overall airfreight market in Taiwan is expected to have considerable growth compared to 2023.
As for the ocean freight market in October, the rapid growth in ocean demand in China became particularly pronounced a week after the end of the Golden Week holiday. In response to the significant freight demand in the market, most container shipping companies are planning to comprehensively raise freight rates on most routes starting from November 1st. Simultaneously, to prevent a subsequent decline in freight rates after the increase, ocean carriers are expected to continue implementing measures such as blank sailing.
During the Golden Week period, an estimated 35% of capacity exited the market. Specifically, capacity reduced by 34% on the trans-Pacific eastbound route and by 40% on the Europe westbound route. Additionally, the recent decision by the European Union not to extend the Consortia Block Exemption Regulations (CBER), set to expire in April 2024, has been made. While some in the freight industry are evaluating whether this decision will impact ocean carriers, others believe that terminating the CBER will not affect the existing three major alliances (2M, Ocean Alliance, and THE Alliance). Alphaliner believes that in reality, only very few ocean alliance carriers currently benefit from and are applicable to CBER. Hence, the cancellation of CBER is not expected to have a significant impact in the industry.
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).
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 October.
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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