Kuehne+Nagel Profits from Global Trade Complexities
By Anastasiia Kozlova
(Reuters) - Swiss logistics group Kuehne und Nagel on Tuesday said it has been capitalizing on increasingly complex global trade issues - from U.S. President Donald Trump's tariffs to the Red Sea crisis - by charging customers more for value-added services.
Since the Covid-19 pandemic, shipping and logistics firms have had to navigate several supply chain crises from backed-up sea ports in the United States and China to worker strikes and Houthi attacks on vessels in the Suez Canal.
More recently, supply chains have been rocked by the threat and implementation of Trump's tariffs on U.S. imports, and subsequent retaliatory levies imposed by the country's trade partners.There is huge customer demand for consultancy services in navigating through difficult times, CEO Stefan Paul said in a call on the company's capital markets day.Trump's tariffs, aimed at protecting domestic industries and reducing trade deficits, have had significant impact on logistics companies. "The inflationary impact of tariffs could likely hurt demand," Parash Jain, Global Head of Transport & Logistics research at HSBC, said, adding that the complexity will continue to increase with the several layers of tariffs across countries and types of cargoes. However, for logistics services providers, the added complexity has created an opportunity to expand advisory and customs services beyond traditional transportation brokering, he added. Kuehne und Nagel said last week it plans to open a new site at Texas-Mexico border to meet growing demand for customs support between the United States and Mexico.The COVID-19 pandemic caused global supply chain disruptions, leading to a surge in demand for logistics services, boosting K+N earnings in 2021 and 2022.
(Reporting by Anastasiia Kozlova in Gdansk; Editing by Richa Naidu)
