Kuehne+Nagel's Q1 EBITDA climbs 62% on record high container rates

Switzerland-based logistics firm Kuehne+Nagel reported on April 26 a 62% year-on-year increase in first-quarter EBITDA as container freight rates surged to an all-time high.

Kuehne+Nagel's EBITDA in the January-March period was CHF 611 million ($668 million), up from CHF 378 million in the first quarter of 2020.

"Exactly one year ago, when we were still at the beginning of the pandemic, we decided to commit to our proven strategy," Kuehne+Nagel CEO Detlef Trefzger said. "Upon reflection, we are assured that we chose the correct path: In the first quarter of 2021, we were well-prepared to serve our customers' robust demand for high-quality logistics services despite the tense market environment."

Platts Container Index, a weighted average of Platts container freight rate assessments, rose to the highest level since the index was launched at $4,653/FEU on March 2, an increase of 372% from the year-ago date as European and North American demand for goods imports outstripped available container-carrying capacity during pandemic lockdowns.

Kuehne+Nagel's first-quarter earnings before interest and tax from its Sea Logistics business increased by 161% year-on-year to CHF 206 million. The company said its volume of containers handled in the January-March period was 1.1 million twenty-foot equivalent units (TEUs), an increase of 2% from the first quarter of 2020.