DANISH forwarding giant DSV saw its air freight volumes and revenues improve in 2024 and is preparing for a volatile market in 2025 while it hopes to complete its takeover of Schenker, reported London's Air Cargo News.

The company registered a nine per cent year-on-year increase in air cargo revenues to DKK55.2 billion (US$7.7 billion) last year, while gross profits were down 10.9 per cent to DKK11.9 billion and air volumes improved by 7.1 per cent to 1.4 million tonnes.

The forwarder said its air freight volumes had grown ahead of the market and revenues had benefited from the higher levels of demand and higher rates. Meanwhile, profits were driven by lower average gross profit yields, while there were also higher costs due to inflation.

The company added that in the second half gross profit improved on a year-on-year basis.

Summing up the air cargo market in 2024, DSV said: "The positive volume trend was most significant for air freight, driven by significant growth in e-commerce volumes from China.

"Demand was positively impacted by a macroeconomic uptrend and an increase in consumer spending, especially in the US, in combination with some pre-loading ahead of a potential implementation of new US tariffs in 2025.

"The growth in global trade volumes remained at a higher level throughout the year compared to 2023 and was above the global GDP growth in 2024.

"The demand for airfreight was also positively impacted by an increase in conversions from sea to air shipments, driven by the narrowed price gap between airfreight and sea freight, disruptions related to the Red Sea situation and risk of strikes on the US East and Gulf coasts.

"Air freight capacity gradually increased during 2024 with the continued return of belly-space capacity from passenger planes, partly offset by airspace restrictions related to the sanctions on Russia."

During the year, DSV also expanded its air charter network with more frequent departures and new routes to support service levels.

In the fourth quarter, air revenues improved by 24.8 per cent year on year to DKK15.6 billion, gross profit was up 2.2 per cent and air volumes increased by 7.4 per cent to 337,223 tonnes.

The overall Sea & Air division saw full-year revenues increase 14 per cent to DKK104.5 billion and operating profit was down 9.9 per cent to DKK11.9 billion. The overall company saw revenues for the year increase 10.8 per cent to DKK167.1 billion, operating profit was down 9.2 per cent to DKK16.1 billion and overall profit slipped 18 per cent to DKK10.2 billion.