The world’s two largest freight forwarders appear to be pursuing increasingly different paths to growth.
Acquisitive DSV has placed multi-billion-dollar bets on scale, and is now integrating DB Schenker into what it hopes will become an unrivalled global forwarding network.
Kuehne+Nagel, meanwhile, favours targeted acquisitions that strengthen specific capabilities, with its results focused on operational efficiency, artificial intelligence, and higher-margin customers rather than sheer size.
The latest half-year results suggest both strategies have merit.
Air freight was strong for both, benefiting from demand for AI infrastructure and technology shipments, while ocean freight remained resilient, despite continuing market uncertainty.
At DSV, the story is still one of integration. Air & Sea revenue rose 32% in the first half, as Schenker contributed additional volumes, while management said integration was now beginning to translate into improved profitability. The group continues to target Dkr9bn of annual synergies from the acquisition by 2027.
CEO Jens Lund told analysts the benefits were only beginning to emerge. He said: “All in all, on the Air & Sea side, I think we are on the right track and the division is going to deliver continued progress also in the coming quarters, because we are very advanced on integration.”
First-half revenue in air was up 36%, with gross profit rising 24% on volumes up 28%. In Sea, revenue went up 21.6%, while gross profit rose 4.9%, on a volume rise of 24%.
Mr Lund acknowledged ocean volumes had been weaker than expected, but said initiatives were under way to improve growth.
Road Logistics continued to present operational challenges, he said, despite management changes and higher earnings following the Schenker acquisition.
By contrast, K+N’s results focused less on scale than on extracting more value from existing business.
The Swiss forwarder’s Air Logistics division produced one of its strongest quarters in recent years, with EBIT climbing 35%, to Sfr154m on revenues up 20%, while for the first half, air revenue was up 4.2%, with EBIT up 15%. Management attributed the improvement to market share gains and a stronger customer mix, particularly in technology.
CEO Stefan Paul said simply: “Air Logistics delivered an excellent quarter, increasing profit by 35%.”
K+N highlighted specific growth opportunities, including the movement of cloud infrastructure equipment for Google between Asia and the US, illustrating how AI investment was becoming a significant driver of premium air cargo demand.
In ocean freight, DSV highlighted the benefits of procurement scale and Schenker synergies, while K+N focused on execution. Its Sea Logistics division lifted its conversion ratio to 29%, despite subdued European export demand, helped by tighter cost control and market share gains on the Asia-Europe and transpacific trades.
The difference extended well beyond air and sea: K+N repeatedly returned to themes of productivity, efficiency, and AI deployment, saying it was accelerating the roll-out of AI agents to optimise operational processes.
Contract Logistics also benefited from new technology customers, with more than 300,000 sq metres of additional warehouse capacity dedicated to cloud infrastructure providers.
DSV’s AI ambitions are no less significant, but are more aimed at making an ever-larger global network more productive. Technology was discussed as an enabler of integration, standardisation, and scale.
While DSV has been the poster boy for M&A in the sector, K+N has continued to acquire businesses, but largely through smaller, targeted deals. Loadstar Premium‘s exclusive report that K+N is considering a future separation of Apex would only reinforce that focus on portfolio optimisation rather than transformational expansion.
The financial results suggest both strategies are delivering, albeit in different ways.
DSV generated first-half revenue of Dkr147.1bn ($22.7bn) and EBIT before special items of Dkr11.1bn ($1.7bn), equating to an operating margin of 7.5%. K+N reported Sfr12.4bn ($15.4bn) in net turnover and recurring EBIT of Sfr726m ($900m), representing a margin of 5.9%.
DSV’s larger scale following the Schenker acquisition has enabled it to generate almost twice as much operating profit as its Swiss rival, while also producing a higher return on revenue. Whether that advantage proves sustainable, or whether K+N’s more targeted, efficiency-led approach ultimately delivers better long-term returns may become one of the defining strategic questions for the forwarding industry.