GERMAN air forwarding giant DHL posted a 32.6 per cent first half year-on-year net profit decline to EUR1.88 billion (US$2.05 billion) drawn on revenues of EUR41 billion, down 12 per cent.

"The environment in which our group operates is more challenging today than it was a year ago," said DHL Group chief financial officer Melanie Kreis. "We are confronted with the continuing normalisation of freight rates as well as weaker market dynamics."

Revenue at DHL's Global Forwarding business unit decreased 40.3 per cent to EUR7.7 billion in the first half against the backdrop of the general normalisation of freight markets.

Air freight volume fell 15.9 per cent in the first half to 829,000 tons, with the loss of volume felt mainly on trade lanes from China to the US and Europe where the lower selling rates dragged air freight revenue down 43.2 per cent to EUR3.2 billion. Revenue for the second quarter fell 46.8 per cent to EUR1.4 billion.

Ocean freight volume of 1.5 million TEU in H1 was a 7.1 per cent drop year over year as demand slowed on routes out of China, resulting in revenues decreasing 45.6 per cent to EUR3.1 billion. Second-quarter revenue fell 55.8 per cent to EUR1.4 billion.

Also reporting significant declines in first-half earnings but remaining highly profitable were DSV, Kuehne+Nagel and DB Schenker. DSV and Kuehne+Nagel recorded similar EBIT of close to $1.5 billion and net profits of just under $1 billion each, while DB Schenker reported EBIT of EUR626 million, down 47 per cent year over year.