Dimerco Express Corporation (5609) today announced the consolidated sales revenue for the month of September 2023. The consolidated sales revenue of September 2023 is NTD 1,817 million, a decrease of 41.0% compared to September 2022, and an increase of 6.5% compared to previous month. The consolidated sales revenue of September 2023 YTD is NTD 15,665 million, a decrease of 52.7% compared to the same period last year.
For the airfreight market in September, due to the increasing demand of eCommerce growth in China and AI Supply Chain product from Asia to USA, airfreight rate keeps increasing. On the other hand, charter flight demand and freight rate have increased due to Apple’s new products while airfreight rate has increased with capacity shortage within Asia and between Asia and USA/Europe due to Mid-Autumn Festival & National Day Holiday in China and end of the Q3 demand. Besides, 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 Q4 and Q1, 2024 while Panama Canal’s low water levels leads high freight rate between Asia and Eastern USA & Mid USA.
As for the maritime market for September, Alphaliner released rankings for the top 30 container ports for the first half of 2023, showing a widespread decline in container operations in major ports in Europe and the Americas, with declines ranging from 5% to 25%. In contrast, Chinese ports performed relatively well, showing a growth of 4.8% compared to the same period last year. Despite the “China +1” policy, the growth of major transshipment ports in Southeast Asia, such as Singapore and Port Klang in Malaysia, has been limited. Although imports from Asia to the United States have decreased by 21% in the first eight months of the year, shipping companies have managed to maintain a certain degree of stability in Trans-Pacific Eastbound freight rates by continuously reducing capacity since early July.
According to a report from Sea-Intelligence, shipping companies plan to reduce excess vessel capacity on the Trans-Pacific Eastbound route by 14% in October, nearly double the reduction seen in September. In contrast, the outlook for the Westbound route to Europe is less optimistic, with shipping companies expected to actively cuts capacity by 25-30% in October to prevent a rapid decline in freight rates. Given the extensive vessel withdrawal strategies, the maritime market is facing increased unpredictability in freight rate fluctuations and other challenges such as changes in schedules, shut-out and transshipment.
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 September.
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.
The MyDimerco platform includes the ability for global customers to easily access and obtain carbon emissions data for their shipments starting from the Q3, 2023, covering shipments from 2022. This data can be retrieved through the platform, and statistical reports can be generated. This initiative aligns with customers’ participation in the green supply chain movement and their collective commitment to safeguarding the planet.
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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