The Covid-19 pandemic has accelerated the adoption of “disruptive and emerging” supply chain and logistics technologies, according to global 3PL Agility.
Reporting first half performance Tarek Sultan, vice-chairman and chief executive at the Kuwait-based 3PL, said: “We… took steps to bring operating expenses and other costs in line with the new environment. If the crisis has demonstrated anything, it is the essential value of logistics and supply chain providers in times of severe disruption.
“Our contract logistics business and logistics parks have weathered this reasonably well because demand for storage space has been steady or increased, especially as customers have looked to add to safety stock or support pandemic-driven increases in e-commerce sales.
“In many instances, we are experiencing accelerated adoption of disruptive and emerging technologies related to the Covid-19 pandemic or underlying corporate social responsibility (CSR) paradigms.”
In its Global Integrated Logistics division turnover increased 2.5% on the same period in 2019, up to Kuwaiti Dinar 570.6 million (£1.4 billion). Volumes were down in both air freight and ocean freight in the first half of the year, by 23.6% in air freight (tonnage) and 14.8% in ocean freight (TEUs), due to Covid-19 impact on demand.
EBITDA was up 1.3% year-on-year to KD 28.8 million. This, said Agility, was driven by strong contract logistics, project logistics and air freight performance, as well as a “sharp focus on containing costs”.
Including its infrastructure business global turnover fell 1.3% in the first half to KD 765.1 million, while EBITDA fell 20.1% to KD 75.8 million.