Röhlig Logistics is growing in Asia, Latin America and Contract Logistics
Bremen, 14 May 2020 - The owner-managed logistics company Röhlig continues to expand its worldwide presence. Today in China, Röhlig is represented by a total of twelve branches through the opening of three new offices in the west, namely Chengdu, Chongqing and Xi’an. In Mexico, Röhlig has taken over 100 percent of the shares in its previous joint venture and has branches in Mexico City, Monterrey and Puebla. Röhlig is also strengthening its presence in India and has opened a third office in Vadodara in the important state of Gujrat.
Philip W. Herwig, Managing Partner at Röhlig Logistics, explains: “We continued to expand our network in 2019 and were able to record encouraging growth in Asia, India and Latin America. But the many international conflicts, the trade dispute between the USA and China - two of our most important markets - social unrest in Latin America, strikes in France and of course Brexit - made it difficult for us to implement our growth plans for 2019."
Positive effects from Asia and Latin America
In 2019, the gross profit generated was roughly the same as the previous year's level at EUR 141 million. Business in Asia continued to develop very positively with a good increase in gross profit of 10 percent. The first-time consolidation of the company in Mexico and the strong development in Latin America also contributed to the development of gross profit. Hylton Gray, CEO Air Freight, Sea Freight, Contract Logistics & Projects at Röhlig, explains: "In the United States, the US government's trade policy fully impacted the import business, which Röhlig saw firsthand in a 4,5 percent decline in gross profit in the U.S. We were able to offset this effect primarily through good development in Asia and Latin America. ”
Growth in contract logistics
In contract logistics, Röhlig increased gross profit by 38.9 percent thanks to the expansion of its capacities and improved worldwide capacity utilization. The locations in Germany and China made a particular contribution to this development. However, the global economic turmoil has had a noticeable impact on the core business. Compared to 2018, gross profit in ocean freight fell by 2.1 percent and in air freight by 6.8 percent. The operating result (EBIT) is EUR 5.2 million due to the overall significantly dampened business environment.
"In the age of the coronavirus pandemic, our top priority is the safety of our employees worldwide. As the lockdown started they were given access to our systems to work from home within a very short period of time. This is how we ensure continuous service for our customers," emphasizes Philip W. Herwig. “How strong the effects of the coronavirus will be on the global economy can only be estimated towards the end of the second quarter.”