DFDS’s third quarter profit soared 17 percent even as northern Europe’s leading short-sea shipping and logistics operator closed routes and rejigged its network as Russian sanctions hit its key Baltic trades.
The Danish shipping and logistics company’s operating profit grew to 423 million krone ($70.5 million) in the three months through September from 352 million krone in the same period in 2013. Revenue was up 7 percent at $600 million.
“Freight operations overall performed in line with expectations,” said chief executive Niels Smedegaard.” European market growth is still subdued with the exception of the UK, our most important market.”
The company said a realignment of its Baltic route network had partly mitigated the impact of the conflict between Russia and Ukraine.
DFDS plans to exit the loss making Le Havre-Portsmouth route at the end of the year the latest in a number of route closures in the past year. A service between Germany and Lithuania was suspended in August just three months after opening as tit-for-tat sanctions by the EU and Russia collapsed freight volumes.—JOC.COM