OceanX: Whither TradeLens and the digitisation challenge? China's Covid conundrum
Disquieting digi-questions to digest…
A remarkable turnaround appears to be under way at Swiss logistics group Panalpina, which this morning released second-quarter results showing air freight on the increase for the first time in more than two years.
Chief executive Peter Ulber refrained from any chest-thumping, however, “Our second-quarter results show a slight recovery of our business. All our products managed to gain market share. Ocean Freight and Logistics show double-digit growth in terms of gross profit and Air Freight is growing again, albeit moderately.
Nonetheless, the consolidated company’s gross profit increased 44% year-on-year to reach CHF41.1m, compared with CHF16.8m in the second quarter of last year, while profit for the first half of the year hit CHF38.4m compared with a CHF24.1m loss in the first half of 2012.
Air freight volumes increased by 3%, against a flat market – although zero growth is still better than the declining market seen in previous quarters – and Panalpina carried 105,6oo tonnes in Q2, marking a turnaround from the first quarter of this year, which saw volumes decline 3% on Q1 2012.
The company’s Americas and Asia-Pacific regions saw volumes grow 7% and 2% respectively, while European volumes declined 6% year-on-year.
“The transported volumes of Panalpina’s customers in the hi-tech and chemicals sectors remained at relatively low levels. Consumer and retail, as well as healthcare and oil and gas customers, however, grew substantially,” the company said in a statement.
Ocean freight volumes increased by 5% year-on-year, with European volumes growing by 14%, while Americas and Asia-Pacfic volumes growing 2% and 3%, respectively.
Panalpina has also seen its logistics business improve. Most of its recent investment has been directed there, particularly in IT and warehousing and distribution activities. The Logistics division’s pre-tax profit grew by 19% over the second quarter of last year.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) grew 58% year-on-year, and by 73% quarter-on-quarter, to reach CHF52.1m, and its EBITDA-gross profit margin was 13.1%, on the back of stable employee expenses and productivity improvements in air and ocean freight of 14% and 4%, respectively.
Mr Ulber appeared almost at pains to ward off over-exuberant optimism however. He said: “We don’t expect any fundamental changes in the world economy, but still anticipate a continuing recovery in our air freight business. Ocean freight, as well as logistics value-added services, are on track and the group’s profitability is slowly recovering.”
Expeditors sues long-term client for unpaid $20m in row over invoices
More bad news for carriers hoping rates decline has bottomed-out
Rivals set out to woo UPS customers as fears of a strike grow
Rate erosion may be easing, but rock-bottom prices are 'not good for anybody'
Drop 'DB' and 'DP'. Call it 'DHL Schenker'. Sounds cool, huh?
2M axes Asia-North Europe loop, as carriers shop for more tonnage
Taiwan carriers pay record staff bonuses after year of bumper profits
Airfreight rate relief for shippers, or are things going to 'turn nasty'?
Shippers put more pressure on ocean carriers for carbon-free services
Atlas Air merger with Apollo group finally set to close on Friday
Dachser's M&A in air and ocean freight – how serious is that?
Asia services expanding as logistics players opt for a 'China+1' strategy
Comment on this article