The 3PL’s strong financial results were fueled by strong Asia trade and increasing volume in the region.
Kerry Logistics Network Ltd. saw double-digit profit and revenue growth for the first six months of 2018 from the corresponding prior-year period, fueled by strong Asia trade and increasing volume in the region.
Profit for the period totaled $1.16 billion Hong Kong (U.S. $148 million), up 19 percent from the first six months of 2017, according to the third-party logistics provider’s latest financial statements.
Meanwhile, revenues for the first six months of 2018 reached HK$17.46 billion, up 27 percent year-over-year.
“The China-U.S. trade dispute has caused manufacturing capacities to shift from mainland China to other Asian countries, bringing about an increase in shipping volume and production activities in Asia,” said William Ma, group managing director of Kerry Logistics.
Trade volume between mainland China and the U.S. is expected to dwindle in the near future, and as a result, certain Asian markets will likely benefit from the increased intra-Asia trade as customers look for alternative supply sources beyond mainland China and the U.S., explained George Yeo, chairman of Kerry Logistics. “Asia has been experiencing the fastest trade volume growth for both imports and exports, driven by rising domestic consumption and increased investment,” he said. “We expect our Asian business to continue to grow and contribute to a major part of the group’s profit in three to five years’ time.”
Kerry Logistics ramps up profit
