Panalpina Catch a train in China [Forwarder]
Increasingly, cargo catches a train in China and then travels more than 9,000 km to Europe.
Over the last few years, rail services that link Asia with Europe – such as the New Silk Road (south corridor) or the Trans-Siberian Line (north corridor) – have become an important alternative to air and ocean freight transportation. From 2014 to 2016, Panalpina’s rail volumes from China to Europe tripled and many major shippers now transport sizeable volumes by rail. The service is particularly attractive for customers in the automotive, manufacturing, technology as well as retail and fashion industries.
In September 2016, Panalpina launched its first own-controlled Less than Container Load (LCL) rail service from China to Poland. Own-controlled means Panalpina takes care of pick-up and consolidation in China and deconsolidation and delivery in Europe. “More than 150 customers have used the service so far, moving over 5,000 m3 of cargo such as automotive parts for tier 2 and 3 providers, tablets, equipment for manufacturing lines as well as clothes and shoes,” says Antonio Pacciolla, regional head of overland Europe at Panalpina. “We expect these volumes to grow further as more of our customers in Germany, the Czech Republic, Slovakia, Hungary, Romania, Sweden the Netherlands and Belgium are now considering this transport option.”
Panalpina consolidates cargo in Shanghai and, once per week, sends the stuffed containers on their 20-day journey through China, Kazakhstan, Russia and Belarus into Poland. “We truck cargo to Shanghai from nearby Wuxi and Suzhou, from further away in the north – Dalian, Beijing, Tianjin, Qingdao – or from further south such as Ningbo, Wenzhou, Fuzhou, Xiamen and all the way from Shenzhen.” The rail journey ends in Warsaw, where Panalpina deconsolidates the cargoes and distributes to final destination across Europe by truck.
As demand for this kind of rail service is on the rise, Panalpina will open a second consolidation point in Shenzhen in July, thereby considerably shortening pre-carriage distances in Southern China.
“The rail service is one-third the cost of air freight and twice as fast as ocean freight. It’s an interesting proposition that is catching on,” concludes Antonio.
Posted at 14:26 パーマリンク
Panalpina to acquire Kenyan freight forwarder specialized in perishables [Forwarder]
International freight forwarding and logistics company Panalpina is to acquire Air Connection, a Kenya-based forwarder specialized in the export of flowers and vegetables. The move comes after Panalpina’s acquisition of Airflo in Kenya in 2016 and only two weeks after the company formally announced the launch of its global Perishables Network.
Panalpina will acquire the family-owned Kenyan company Air Connection, subject to conditions. The companies reached a respective agreement on May 2, 2017.
“The acquisition of Air Connection will strengthen our existing global Perishables Network and our position as the clear market leader in the perishables arena in Kenya,” says Stefan Karlen, Panalpina’s CEO. Air Connection is specialized in the export of flowers and vegetables from Kenya to multiple destinations including the Netherlands and the UK, and is currently the country’s fourth largest forwarder in terms of air freight export volumes. The merged company will handle around 70,000 tons of perishables air freight per year.
The activities of Panalpina and Air Connection in Kenya complement each other. “While most of Panalpina’s flower exports from Kenya currently go to auctions in Amsterdam, we are specialized in direct shipments to customers,” says Manjit Brar, owner and managing director of Air Connection. “And while Panalpina is strong with big charter shipments from Kenya to Europe, our strength lies in smaller shipments on scheduled passenger flights to over 150 destinations worldwide.”
Direct shipments are a trend in the perishable market, explains Conrad Archer, managing director of Panalpina Airflo: “Increasingly, buyers of perishables want to source directly from the producer and producers want to sell directly to the country of consumption. Direct shipping bypasses intermediaries, reducing touch points in the supply chain. It removes unnecessary costs, potential delays and most importantly allows a fresher product to be offered to the consumer. At the same time, this development will make sophisticated end-to-end solutions even more important than today. Joining forces with Air Connection will offer additional opportunities to grow the perishables business in Kenya, especially with the export of vegetables, herbs and cuttings.”
The merged company will employ over 350 staff in Nairobi and offer 3,000 m2 of cold storage capacity, which is soon to be extended even further to 4,000 m2. It will also run an office at the port of Mombasa where Panalpina plans to develop the ocean freight business for both perishables (using reefers) and dry cargo. The dry cargo activities involve the import of textiles and export of fashion products, mainly to the USA. Manjit Brar, who founded Air Connection in 1993, will remain as a consultant.
The companies have agreed not to disclose any financial details of the deal. The acquisition is subject to approvals by the relevant competition authorities.
Posted at 21:16 パーマリンク
Panalpina expands footprint in Denmark [Forwarder]
As part of its global growth strategy, Panalpina has acquired Carelog, a Danish freight forwarding and logistics company with a strong foothold in ocean freight and roots in the western part of Denmark. Carelog and Panalpina complement each other ideally in terms of geography, product strengths and customer mix.
Panalpina World Transport (Holding) Ltd. has acquired a majority stake in Carelog Freight Service A/S and its subsidiaries. The transaction was completed yesterday in Copenhagen, Denmark.
“We want to increase our market share in Denmark,” says Stefan Karlen, Panalpina’s CEO. “The country has many export-oriented companies and its biggest industries, namely manufacturing, consumer, retail, fashion as well as healthcare, are industries that we focus on and serve globally.”
Founded in 2008, the Danish freight forwarding and logistics company started out with customers in the furniture and fashion industry and then expanded to other sectors such as machinery and agriculture. While Carelog is especially strong in ocean freight, Panalpina is traditionally strong in air freight. The merged company employs approximately 70 people that provide ocean freight, air freight and logistics services from six locations in all regions of Denmark including in Copenhagen, Aarhus and Odense.
“Carelog has a very healthy customer base while Panalpina has the global network and profound industry expertise that will together allow us to service the international companies optimally. We are proud to become part of a larger family and reputable brand. And although we may merge with a global player we will always be conscious of our roots and stay flexible for and committed to our existing local customers,” adds Lars Engbo, managing director of Carelog. Engbo, who was one of the founders of Carelog, has been appointed as managing director of the new company that operates under the name of Panalpina Carelog.
“Panalpina and Carelog together create a respectable mid-sized freight forwarding and logistics company in Denmark and provide a solid foundation for further growth,” says Volker Boehringer, regional CEO Europe at Panalpina. “In a market that is dominated by few enterprises, we have now a broader geographical footprint and a stronger, more balanced product offering. The ambition is clearly to become a leading player in Denmark.”
The two companies have agreed not to disclose any financial details of the deal.
Posted at 21:15 パーマリンク
Panalpina Perishables Network launched with ambitious growth plans [Forwarder]
The worldwide transport of perishables constitutes a huge market where Panalpina is aiming to become the market leader. By 2020 the company aims to be the preferred global supplier of perishables logistics, offering customers in both origin and destination countries complete end-to-end solutions on a global scale. The success factors for this accelerated and concentrated push into perishables are the company’s global coverage, dedicated perishables experts in key markets and the unique Panalpina Charter Network.
Transported volumes in the perishables industry are growing year on year by an estimated 5%, and Panalpina is one of only very few freight forwarders worldwide that can combine global coverage with experts dedicated to the perishables business.
“We have the ability to connect growers and exporters to importers and retailers all over the world to enable the increasing global trade of perishables from field to shelf and to ensure product integrity along the complete cool chain,” explains Colin Wells, global head specialty vertical perishables at Panalpina. “Our clear ambition is to become the preferred global supplier of perishables logistics by 2020. We see enormous potential to substantially grow our geographical footprint and volumes in North and South America, Africa, Europe, Asia and Australia,” adds Wells.
The Panalpina Perishables Network provides a choice of multiple modes of transport depending on urgency and shipment size. These include temperature-controlled air freight, also on fully-controlled flights within the Panalpina Charter Network, ocean reefer freight, temperature-controlled road and courier services, or any combination of these modes of transport.Panalpina’s specialists ensure a quality service with optimum mode of transport and speed to market, full supply chain visibility and global regulatory compliance.
“What sets us apart from the competition is our global reach, our unparalleled air freight charter expertise and capabilities; combined with dedicated, highly experienced perishables experts. For specific markets and perishables, we will work closely with qualified agents that bring additional local expertise at origin and destination to the table. It is a winning formula that truly allows us to offer end-to-end solutions on a global scale where shipments arrive in the right place, at the right time and in peak condition,” says Wells.
The growth perspectives and the global nature of the perishables business make it attractive for Panalpina. The company’s perishables activities originated in Latin America, and were then extended to Europe and Africa. The Panalpina Perishables Network will span 15 key countries at first, with a clear plan to double the network to cover all regions.
“The world’s appetite for fresh produce is growing, owing to constantly changing consumer behavior in Western countries and rising incomes and increasing populations, specifically in Asia-Pacific. Our appetite for a much bigger piece of the pie is also growing,” says Karl Weyeneth, Panalpina’s Chief Commercial Officer. “The Panalpina Perishables Network is designed to offer the greatest choice and best quality for shippers and consignees wanting to move their sought-after products.”
Posted at 22:01 パーマリンク
Panalpina reports higher volumes as margins remained under pressure [Forwarder]
Panalpina reports higher volumes as margins remained under pressure
Panalpina - Apr 21, 2017 05:00 GMT
Financial results for the first quarter 2017 came in below the previous-year period for Panalpina. The international freight forwarding and logistics company reported an EBIT of CHF 16.4 million (Q1 2016: CHF 24.0 million) and a consolidated profit of CHF 12.4 million (Q1 2016: CHF 17.3 million). Panalpina outperformed the air and ocean freight markets in terms of volume growth as margins remained under pressure.
“In the first three months of the year, we succeeded in outperforming the markets with volume increases of 8% in Air Freight and 7% in Ocean Freight. As expected, margins remained under pressure, however, they are slowly recovering since we saw an upturn in unit profitability in both Air and Ocean Freight compared to the last quarter of 2016,” says Panalpina CEO Stefan Karlen.
Panalpina Group: Results for the first quarter of 2017
(CHF million) Q1 2017 Q1 2016
Net forwarding revenue 1277.2 1307.2
Gross profit 332.7 364.9
EBITDA 27.1 36.2
EBIT 16.4 24.0
Consolidated profit 12.4 17.3
In the first quarter of 2017, group gross profit decreased 9% to CHF 332.7 million (Q1 2016: CHF 364.9 million), while total operating expenses were reduced by 7% to CHF 305.7 million (Q1 2016: CHF 328.7 million) year on year. Panalpina achieved an EBIT of CHF 16.4 million (Q1 2016: CHF 24.0 million), a decrease of 32% compared to last year’s first quarter. The EBIT-to-gross-profit margin came in at 4.9% (Q1 2016: 6.6%) and the consolidated profit of the group reached CHF 12.4 million (Q1 2016: CHF 17.3 million).
Panalpina’s Air Freight volumes grew 8% in the first quarter compared to an estimated market growth of just above 6%. Volume growth was driven mainly by the Far East trade lanes. Gross profit per ton decreased 10% to CHF 620 year on year (Q1 2016: CHF 688), but was up versus the last quarter. Gross profit overall remained almost unchanged at CHF 144.7 million (Q1 2016: CHF 148.6 million). With an EBIT of CHF 17.1 million (Q1 2016: CHF 17.8 million) and an EBIT-to-gross-profit margin of 11.8% (Q1 2016: 12.0%), Air Freight kept previous-year profitability levels.
Panalpina’s Ocean Freight volumes increased 7% year on year while the market grew by an estimated 4%. The Transatlantic and Far East trade lanes contributed to Panalpina’s growth. However, gross profit per TEU decreased 17% to CHF 282 (Q1 2016: CHF 339), resulting in a gross profit of CHF 105.5 million (Q1 2016: CHF 118.1 million). Quarter on quarter, gross profit per TEU increased. As in the last quarter, EBIT and EBIT-to-gross profit margin were negative with CHF -3.2 million (Q1 2016: CHF 4.3 million) and -3.0% respectively (Q1 2016: 3.7%), though both showed an upward trend.
The exit from more underperforming sites meant that the gross profit of the Group’s Logistics product decreased 16% to CHF 82.5 million (Q1 2016: CHF 98.2 million), but with a strong end to the quarter and further improvements in underlying profitability, EBIT increased from CHF 1.8 million to CHF 2.4 million, resulting in the highest quarterly result recorded to date.
“While the challenging market dynamics are expected to continue throughout 2017, we are well-positioned in the market and cautiously optimistic that we can keep up the strong volume growth in Air and Ocean Freight, further gaining market share,” Karlen says. “In a market environment where rates are currently going up instead of down as last year, we also expect to make progress in yield management. One of our top priorities remains, of course, to restore profitability in Ocean Freight.”
Posted at 21:55 パーマリンク
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