Damco’s profit slipped on increased revenue in the first quarter as the global freight forwarding and logistics group saw air freight tonnage soar while ocean container traffic stalled.
The A.P. Moller-Maersk subsidiary posted net operating profit of $6 million, down from $7 million in the first three months of 2012, as revenue jumped to $773 million from $728 million.
Air freight volume grew 15 percent from a year ago, well ahead of the market, partly because of the acquisition in October of Pacific Network Global Logistics, an Australian freight forwarder with a strong presence in China.
Ocean freight, by contrast, increased just 1 percent from a year ago, continuing the slow growth rate of late 2012.
Supply chain management growth accelerated to 10 percent year-over-year mainly driven by a strong spike in shipments ahead of the Chinese New Year.
The company said the relocation of its headquarters to The Hague, Netherlands, from Copenhagen, was completed on schedule during the quarter.