As they recover from the global economic recession, many shipping companies have relied on a few major industries to boost their bottom lines. One of those is the technology industry.
However, that strategy may not be paying at the moment. Recent reports show that DHL is experiencing a revenue decline as a result of weak demand in the technology, engineering and manufacturing sectors.
According to an article on Air Cargo World, DHL saw a 6.3 percent revenue decline in its global forwarding and freight divisions. Though the decrease is actually only about 4 percent when adjusting for exchange rates, revenue and cargo volume still fell below 2012 levels.
In addition, the article reported that weaker demand along east-west trade lanes cut into ocean freight revenues, putting further strain on DHL. Still, thanks to cost controls and slight revenue increases in European shipping, the carrier managed to boost overall revenue by about 2 percent.
"Our strength in the international express business and in Germany's parcel market has paid off once again in the past few months," said Frank Appel, DHL CEO. "Our focus on cash flow generation is also increasingly bearing fruit."
Still, weak technology-related revenues are a cause for concern. But given the nature of these items, DHL can build customer loyalty by ensuring that more of these expensive, often fragile pieces of equipment make it to their destinations without damage.