A part of Watch Media

ShippingWatchWednesday8 February 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
28/05/2015at 11:05

DSV CEO: Long road ahead for US growth business

DSV is still a small player in the US, which has delivered a significantly increasing income for the Danish transport group. "There is a long road ahead and we must work harder compared to the big players," Carsten Trolle, CEO of DSV's global Air & Sea division, tells ShippingWatch.
BY OLE ANDERSEN

DSV is lying in wait for a significant, potential acquisition in the US in a North American market which these years is supplying a large part of the earnings at the Danish logistics group, and it looks as though it was a well defined, strategical decision for DSV's top executive for the entire global Air & Sea division since April 1st, Carsten Trolle, to be located permanently near the company's US head quarters in New Jersey. But the location has several explanations.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

49 year old Carsten Trolle has spent the last 24 years in the US, where he in 2005 became a part of DSV's management in the US and North America, initially as Vice President and since the fall of 2009 as President, until he this year took over as CEO for the entire global Air & Sea division, which is the largest company in DSV.

Solo run in the US

Carsten Trolle has thus been a pivotal figure in the establishment of DSV's US-based organization, which in the past fiscal year delivered the most significant gains for Air & Sea - or as DSV CEO Jens Bjørn Andersen explained regarding the company's first quarter interim report for 2015: The division performed a solo run.

Air & Sea drove growth at DSV in 2014

"Our North American activities have performed better than we have ever seen before. They performed an absolute solo run. Of course the dollar helped, but even without that effect we have grown by over 11 percent. This is excellent, we have taken market shares and grown more than the market," said Jens Bjørn Andersen.

Carsten Trolle himself explains the boom in the US by pointing to the strong organization and management, where many have taken part in establishing the American part of DSV's global organization, and for years have collaborated with a continuous influx of younger employees, who receive responsibility and the opportunity to open new offices in the US, for example.

The emergence

"We have a management that has worked together for over 20 years, and we were all very young when we came to the US, where we helped build a company up. There is a very solid understanding of the fact that this is our own business, and it is definitely a big strength to be part of a management team where we are very familiar with each other," Carsten Trolle tells ShippingWatch.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

Compared to DSV's typical competitors, the Danish logistics group is still a limited player in the US and will presumably continue to be so for some time ahead without one or several big acquisitions, although DSV presently has 26 offices in the US, with current plans for an additional two, and will maintain its strategy in the US of emerging with new locations, in the shape of new offices and regional representation, while other logistics companies are combining offices.

"That doesn't work for us. We start to set up the production of a new office as soon as the other office is making money. The most recent example is our office in Salt Lake City, where we broke even with our investment six months after beginning and where we are now making good money and have new, bigger customers in the system, " says Carsten Trolle, who must admit that DSV in the US is still a relatively unknown name in the logistics industry, even though the Danish transport group ranks as the fifth largest forwarder globally:

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

"We have a long, long way to go. We have huge possibilities in the US, but this must of course be controlled. We have to move forward slowly and steadily and have a plan for how to execute. We have seen some of our competitors hire loads of people with no great gains. We're not establishing offices in the US right now just to set up an office, and there is a limit to how many we need. Should we have 100? No, we should not. Should we have about 30? Yes, we probably should."

Long road ahead

Just six months ago, rumors emerged that DSV was investigating the opportunities for a potential acquisition of US-listed logistics company UTi Worldwide, which in December 2014 had a market value of USD 1.5 billion and with the biggest business in the US. DSV has previously stated that an acquisition of that size does not scare the Danish company.

Is there a long way to go for DSV before you become a big and known forwarder in the US?

"Yes, there is a very long road ahead before DSV will be a known name in the US, if you look at some of our competitors for example. But we don't view this negatively, because we have a lot of possibilities. But we need to work harder in regards to the big customers, while the knowledge of DSV is the US still isn't common yet, but this can work against us as well as work for us."

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

"In the US, we have grown a lot with small and medium sized customers, which we have based our business on, and which we also want to grow with going forward. We have improved - improved a lot - when it comes to bigger customers, but we still have a ways to go."

In 2014, the US was behind about a third of the combined income in the Air & Sea division and the US is currently the country that makes the most money for DSV with some of the highest profit margins in the market at the American company.

DSV targeting major customers in the US

DSV appoints new CEO of the Air & Sea division

Seafreight continues to grow at DSV

DSV sets sights on Latin America and Africa 

Related articles:

  • DSV targeting major customers in the US

    For subscribers

  • DSV appoints new CEO of the Air & Sea division

    For subscribers

  • Seafreight continues to grow at DSV

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Maersk CEO Vincent Clerc (left) and MSC CEO Søren Toft are following very different strategic directions. | Foto: Jacob Gronholt-pedersen/reuters/ritzau Scanpix og Jason Decrow/ap/ritzau Scanpix
Container

Maersk could be heading for a price war with MSC

After a profit of historic proportions in 2022, Maersk is facing a new reality this year, entailing a potential price war unleashed by the carrier’s partner in the disbanded 2M alliance, MSC, predicts Drewry.
  • Opinion: Maersk and MSC heading for direct confrontation over customers
  • Drewry director eyes one central weakness in Maersk's strategy

For subscribers

Krisen på fragtmarkedet styrker DSV's position i forhold til rederierne: ”I og med at vi er en af de store aftagere af søfragt, har vi også et samarbejde med rederierne, som er strategisk og forankret i direktionen,” siger DSV's topchef, Jens Bjørn Andersen. | Foto: Lars Krabbe/Foto: Lars Krabbe/Ritzau Scanpix
Logistics

DSV to support box carriers that provided help during Covid chaos

For subscribers

Foto: Rebecca Naden
Tanker

Countdown to clash over Euronav's board composition has begun

For subscribers

Maersk is heading for its second record profit, setting a new benchmark in Danish business history. | Foto: Jonas Walzberg/AP/Ritzau Scanpix
Container

Maersk on track to achieve record profit for second consecutive year

For subscribers

Photo: Sund & Bælt
Offshore

Danish authorities suspending 23GW of offshore wind projects

For subscribers

Photo: Casper Dalhoff / Ritzau Scanpix
Container

Maersk redirects traffic following earthquake

For subscribers

Jobs

  • Commercial Contract Manager for the Offshore Wind Industry

  • Head of P2X Marketing and Sales (m/f/d)

  • Ambitious employee for Shipping office wanted

  • Chartering Manager for Lauritzen Bulkers A/S

  • Fleet Manager

  • Foundation Package Manager - Offshore wind industry

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Vessel Manager Marine and QA

  • Senior Financial Controller

See all jobs

Latest news

  • DSV to support box carriers that provided help during Covid chaos – 7 Feb
  • More tankers embark on illicit sailings following embargo on Russian oil – 7 Feb
  • Monjasa to provide green ammonia through new collaboration – 7 Feb
  • Countdown to clash over Euronav's board composition has begun – 7 Feb
  • New major port project underway in the Baltic Sea region – 7 Feb
  • Bank DNB sees box market reach record lows in coming years – 7 Feb
  • Maersk on track to achieve record profit for second consecutive year – 7 Feb
  • Maersk could be heading for a price war with MSC – 7 Feb
  • Oil prices extend gains following earthquake and Chinese demand rebound – 7 Feb
  • Maersk redirects traffic following earthquake – 7 Feb
See all

Jobs

  • Commercial Contract Manager for the Offshore Wind Industry

  • Head of P2X Marketing and Sales (m/f/d)

  • Ambitious employee for Shipping office wanted

  • Chartering Manager for Lauritzen Bulkers A/S

  • Fleet Manager

  • Foundation Package Manager - Offshore wind industry

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Vessel Manager Marine and QA

  • Senior Financial Controller

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

  • About ShippingWatch

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge