DSV eyes lower freight rates, but port pressures as Red Sea routes resume

By Louise Rasmussen

COPENHAGEN, Feb 4 (Reuters) - DSV DSV.CO, the world's largest freight forwarder, said on Wednesday that a resumption of transit through the Red Sea should push freight rates down but could also add pressure on ports.

Shipping companies are weighing a return to the critical Asia-Europe trade corridor after vessels were rerouted around Africa in late 2023 following attacks from Yemen's Houthis in the Red Sea.

"That will free up some capacity obviously if you get the transit time reduced quite a bit," Chief Financial Officer Michael Ebbe told an investor call. He added that this would put pressure on freight rates.

"Though it remains to be seen if everybody of the carriers will start to reroute again, I think that will put some temporary pressure on some of the ports in Europe," Ebbe added.

Shipping group Maersk said on Tuesday it would resume some transit routes through the Red Sea and the Suez Canal this month under its shared services network with Hapag-Lloyd.

SCHENKER INTEGRATION SEEN FINALISED BY END 2026

DSV expects global air and sea freight volumes to increase around 2% to 3% this year, in line with or slightly lower than global GDP forecasts.

The company posted fourth-quarter operating profit before special items of 5.59 billion Danish crowns ($884.38 million), just below analysts' average estimate of 5.64 billion crowns in a company-provided poll.

It forecast a full-year operating profit before special items of 23 billion to 25.5 billion crowns and proposed a dividend for 2025 of 7 crowns per share.

DSV said it now expected to complete the integration of German rival DB Schenker by the end of this year. It had previously expected the integration to run until the end of 2028.

Shares in DSV were up 1.8% at 1133 GMT, reversing course after falling as much as 3.3% earlier.

($1 = 6.3208 Danish crowns)