In 2016, the number of TEU handled by Kuehne + Nagel exceeded the 4 million mark for the first time. With a volume increase of 6.1 per cent, the company grew almost twice as fast as the market and maintained the conversion rate with 31.4 per cent at a high level. The result confirms Kuehne + Nagel’s position as market leader as well as the resilience of its business model in rough seas.
In the eighth year of the shipping crisis characterised by weak demand, overcapacity and record low freight rates, its effects were particularly evident. A major Asian shipping company had to suspend services and the industry-wide trend towards consolidation was accelerated by mergers, takeovers and alliances. Market participants were forced to manage different dynamics.
Kuehne + Nagel maintains its leading position in seafreight not only by business strategies focused on trade lanes and customer groups, but also by a competitive edge in productivity based on efficient IT systems and continuous automation and digitalisation of processes. In 2016, the new operational software “SeaLOG” for seafreight imports was implemented on schedule in more than 100 countries, and improvements in quality were already achieved in the first year due to this proprietary development. The digital quotation and booking platform KN FreightNet for LCL (Less-than-Container Load) generated new orders as well as Kuehne + Nagel’s own LCL network, which grew by 32 new routes in 2016, making it the largest LCL network in the world today. In seafreight, Kuehne + Nagel can meet the most diverse customer requirements. High levels of transparency in order management are essential for the retail sector. Kuehne + Nagel’s new Enterprise Solutions Platform enables the entire order management process to be digitalised down to article level. Industry-specific e-commerce solutions provide Kuehne + Nagel’s seafreight customers with added value and increases in productivity. The specialisation in the reefer container business has been particularly successful. With KN PharmaChain, Kuehne + Nagel offers its customers from the pharmaceutical and healthcare industry an innovative, industry-leading service. Cool chain logistics does not only cover pharmaceutical products, it is also tailored for types of goods such as fruit, vegetables, flowers and other temperature-sensitive freight. Upon customer requirement, a temperature monitoring system, independent of the shipping company, displays compliance with the cool chain online in real time, allowing for a rapid response in case of any temperature deviations. With its one-stop solution KN FreshChain Kuehne + Nagel satisfies the highest quality standards – all around the world.
Based on its experience and solution-oriented approach, Kuehne + Nagel continues to focus on supporting customers with services tailored to their requirements. In a seafreight market that is likely to remain volatile, Kuehne + Nagel offers reliability, planning security and added value.