The international transport and logistics company Gebrüder Weiss ended its 2023 fiscal year with a net revenue of 2.47 billion euros (2022: 3 billion euros). Despite this decline, the company remains above its growth trend seen between 2015 and 2020. The coronavirus effects of the two previous years did not persist in 2023. At 774 million euros, net revenue in the Air & Sea business returned to previous levels. Given the higher freight rates shipping lines and airlines charged, Gebrüder Weiss generated 1.27 billion euros in this segment last year. Revenue was stable in Land Transport and Logistics at 1.45 billion euros (2022: 1.48 billion euros), with declining energy and fuel prices. The equity ratio increased to 63 percent (2022: 60 percent), ensuring the company’s ability to handle crises and positioning it as an ideal employer.
“Despite the challenges posed by general economic conditions, we have been able to help our customers enjoy success in their global sales markets with our first-rate service and increase the presence of Gebrüder Weiss with new locations in the USA and Germany. This is due first and foremost to the wholehearted dedication shown by our employees. Geopolitical conflicts and weaker global economic output had a negative impact on revenue and transport volumes. Our stable financial situation meant that, in 2023, we were still able to implement a comprehensive investment program to expand both locations and services,” says Wolfram Senger-Weiss, CEO of Gebrüder Weiss.
Investments in network expansion
With a record investment of 187 million euros, Gebrüder Weiss substantially expanded its network in German and US markets, as well as South-Eastern Europe, while also investing in customer projects and sustainable energy. In Bavaria, the logistics company consolidated its position through acquisitions and real estate purchases in Bayreuth, Konradsreuth and Nuremberg and the construction of a new freight forwarding terminal in Straubing. The US network was expanded to include locations in Miami, Florida and Laredo, Texas. Other projects included a second location in Bucharest, enlargement of the logistics terminal in Hungary, and construction of a new warehouse in Graz and Reutte, Tyrol. As a result of the acquisitions, the number of employees at the 180 locations increased to 8,600 (2022: 8,400).
Gebrüder Weiss has also been investing in the digitalization of supply chain management. Warehouse analysis functions (Warehouse Analytics) have been added to the customer portal myGW. The portal offers transparency along the entire supply chain and serves as a central information and communication platform for customers and their global shipments, covering real-time tracking to estimated times of arrival.
North American growth
In North America, Gebrüder Weiss continued strategic expansion with a new office and warehouse in Laredo, leveraging the largest inland port in North America to provide additional road, air, and sea logistics services for the flow of trade between the U.S. and Mexico. Gebrüder Weiss also opened an air and sea freight hub in Miami to facilitate transport between Latin America, Europe, Asia, and the Caribbean, and a 106,000-square-foot warehouse in Elgin, Illinois, near the North American headquarters office in Illinois. On the capabilities front, the team added specialized experts in breakbulk and complicated cargo projects and expanded road transport capabilities with new key hires and full truckload services.
“2023 was a pivotal year in which we cemented our logistics leadership in nearshoring by opening multiple key locations and bringing in talented leaders to expand our depth of services,” says Mark McCullough, CEO of Gebrüder Weiss USA. “At the same time, our employees continued to receive accolades for the quality of their work. I appreciate our teams’ ongoing efforts to foster a collaborative culture and surpass customer expectations.”
Renewable energies
The company made progress in decarbonizing its business activities. Three-quarters of the company’s own electricity requirements in the DACH region are met by its own solar power. In 2023, the logistics expert commissioned nine further photovoltaic systems (PV) in the DACH region and Eastern Europe. A total of 27 PV systems generated 5,850 megawatt hours of electricity, doubling the amount of CO2 emissions saved to 2,750 tons.
The company’s attention is increasingly on its own vehicle fleet as it strives to achieve climate neutrality in the operation of its own assets and trucks by 2030. The logistics company already uses e-vans to deliver goods ordered online to customers in Austria, Hungary, Croatia, and Romania. Two battery-powered trucks will be launched in Germany this year, and more e-trucks and e-delivery vehicles will be purchased in Austria. To manage the transition period to e-mobility, the company is converting a large part of its Austrian truck fleet to hydrogenated vegetable oil (HVO).
Following the downturn in global trade and signs of a recession, Gebrüder Weiss expects a slight economic upturn in the second half of 2024, thereby translating into more positive revenue development fed by the success of individual national companies. Wolfram Senger-Weiss noted, “We are benefiting from the fact that we have a global position and can swiftly respond to economic upturns in individual regions with the necessary local logistics services. At the same time, we see confirmation of our “best of both worlds” strategy. The last few years have shown how important it is to invest in the development of the operational network and the company’s digital expertise.”
https://www.gw-world.com/us/news/press/detail/gebrueder-weiss-maintains-course-in-2023
