Kuehne + Nagel Says Market Remains Challenging Despite Slight Demand Uptick

By Dominic Chopping

Kuehne + Nagel saw slightly improving demand for sea transport and air logistics during the first months of 2024 but the overall environment remained challenging, it said.

The Swiss logistics company said cost-efficiency measures were intensified during the first quarter and its previously announced reporting structure reshuffle will allow for further efficiency gains and profitable growth.

Earlier this month the company said it was discontinuing its regional structure, creating a new direct reporting line of its units to simplify responsibilities, allow quicker responses to rapidly changing market developments and enable business decisions to be implemented faster.

"Our focus on efficiency and streamlined structures allowed us to reduce costs per unit by 12% in sea logistics and 14% in air logistics," said Chief Executive Stefan Paul. "By discontinuing the regional structure, we have laid the foundations for further growth and enabled more direct access to our customers worldwide."

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 23, 2024 01:34 ET (05:34 GMT)

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