Reuters reports that Danish firm DSV, the world's third-largest freight forwarder, has predicted a recovery in global trade volumes after surpassing profit forecasts in the first quarter, despite experiencing lower volumes and freight rates.

The logistics group benefited from sky-high transport rates following the pandemic, but a decline in global consumer demand due to cost inflation and high inventories has since led to a decrease in rates.

"As expected, the demand for transportation services and freight rates decreased in the first quarter of 2023," CEO Jens Bjorn Andersen said in a statement.

"We expect global trade volumes to gradually improve in the coming quarters," he added.

While revenues dropped by nearly a third in the first three months compared to the same period last year, reflecting lower trade volumes, the company managed to limit a decline in gross profit to 11.4% by focusing on higher-yielding goods.

"Strong price discipline, high yields, and better-than-expected operating profit. A solid start to the year for DSV," said analyst Mikkel Emil Jensen from Sydbank, as quoted by Reuters.

The company expects yields to decrease in the next quarter as freight markets normalize.

The operating profit in the first quarter, before interest, taxes, and special items, amounted to 4.7 billion DKK (630 million EUR), a 28.2% decrease compared to the same period last year but above the average forecast of 4.2 billion DKK (560 million EUR) in a DSV analysts' survey.