Kerry Logistics records positive growth for 2018 but warns rivalry between China and U.S. will continue
Asia-based, global 3PL Kerry Logistics has announced the Group’s annual results for 2018. The report reveals a 24% rise in turnover, an 11 % rise in core operating profit and net profit climbed by 12 %.
However the company warns that strategic rivalry between China and the US will continue for years to come and disrupt existing global supply chains.
The report reveals the impact on the company: “The China-US trade dispute had significant impact on Chinese export trade in 2018 2H. Customers slowed down their investment and expansion plans which were set out in 2018 1H, resulting in lower-than-expected growth. In Mainland China, the segment profit of the IL business recorded a 12% drop in 2018.”
Commenting on the annual results George YEO, Chairman of Kerry Logistics, said: “Despite uncertainties, Kerry Logistics did well in 2018 achieving double-digit growth. Looking ahead, we see three major trends affecting global logistics:
First, China’s market will continue to grow and become the biggest in the world. Kerry Logistics will broaden and deepen its reach in China selectively.
Second, strategic rivalry between China and the US will continue for years to come and disrupt existing global supply chains. In order to serve our customers well, Kerry Logistics must be able to offer a range of network solutions to them.
Third, technology is steadily disrupting all aspects of the logistics industry. Kerry Logistics will give emphasis to the use of information technology, blockchain and AI wherever practical in warehouse, fleet, freight, contract, and e-commerce management.
We will stay nimble and agile even as our network grows in response to changing threats and opportunities in Asia and the world.”
Opportunities in Asia
The report says: “The fast-changing logistics landscape in Mainland China called for innovation and flexibility in order to capture and serve new and emerging business models and brands. The Group is making significant efforts in boosting performance through speeding up response time to customers’ evolving needs and tapping into the expanding import sector.
“Stronger growth is anticipated to persist in Asia, particularly in Southeast Asia and India, owing to increasing domestic consumption and rising investment. Leveraging its established network in Asia to take advantage of the booming intra-Asia trade, the Group’s business growth in Asia is expected to maintain in 2019.”
William MA, Group Managing Director of Kerry Logistics, said: “With an unparalleled network in Asia, Kerry Logistics is well-positioned to capitalise on the robust growth in the region. Increasing demand in intra-Asia trade and e-commerce business accelerated the Group’s IL businesses. We recorded a double-digit increase in turnover, core operating profit, and core net profit in 2018, achieving positive growth for the ninth consecutive year.”