Panalpina half year ocean freight volumes down 21%
Swiss global logistics group Panalpina saw a 28% fall in air freight volumes and a 21% drop in ocean freight in the half year to the end of June, compared with the like period 2008.
However Panalpina, reporting a 28.1% currency adjusted fall in first half revenues to SFr2.97bn ($2.8bn), saw an upturn in second quarter cargo volumes, albeit compared with a poor 2009 first quarter.
Gross profit fell by 15% compared with the same period in 2008 to SFr727.4m (minus 11.5% in local currency terms). Net earnings for the first six months amounted to SFr16.9m, a currency adjusted fall of minus 79.5%.
Chief executive Monika Ribar said: “Panalpina suffered a sharp fall in ocean and air freight volumes in nearly all trade lanes. Newly acquired businesses also failed to make up for the losses, which had a negative impact on the first-half results.”
The company said that “positive trends” were reported in niche lanes such as Asia-Oceania and intra-Asia, but this was “insufficient to compensate for the drop in traffic between Asia and Europe and on the trans-Atlantic and trans-Pacific shipping routes”.
Between April and June, Panalpina posted a 3% increase in air freight compared with the first quarter and an 8% increase in ocean freight.
Panalpina said that the “sharp falls” in first half volumes was attributable to several factors: “Massive cuts in production in key industries – notably automotive, hi-tech and telecommunications – had a major impact on Panalpina, which has a strong presence in these sectors.
“The market was also affected by a cut-throat price war, with transport prices well below cost. While Panalpina remains committed to its goal of faster-than-market growth over the long term, the group intends to refrain from short-term acquisition of market shares at the expense of profitability.”
However Panalpina, reporting a 28.1% currency adjusted fall in first half revenues to SFr2.97bn ($2.8bn), saw an upturn in second quarter cargo volumes, albeit compared with a poor 2009 first quarter.
Gross profit fell by 15% compared with the same period in 2008 to SFr727.4m (minus 11.5% in local currency terms). Net earnings for the first six months amounted to SFr16.9m, a currency adjusted fall of minus 79.5%.
Chief executive Monika Ribar said: “Panalpina suffered a sharp fall in ocean and air freight volumes in nearly all trade lanes. Newly acquired businesses also failed to make up for the losses, which had a negative impact on the first-half results.”
The company said that “positive trends” were reported in niche lanes such as Asia-Oceania and intra-Asia, but this was “insufficient to compensate for the drop in traffic between Asia and Europe and on the trans-Atlantic and trans-Pacific shipping routes”.
Between April and June, Panalpina posted a 3% increase in air freight compared with the first quarter and an 8% increase in ocean freight.
Panalpina said that the “sharp falls” in first half volumes was attributable to several factors: “Massive cuts in production in key industries – notably automotive, hi-tech and telecommunications – had a major impact on Panalpina, which has a strong presence in these sectors.
“The market was also affected by a cut-throat price war, with transport prices well below cost. While Panalpina remains committed to its goal of faster-than-market growth over the long term, the group intends to refrain from short-term acquisition of market shares at the expense of profitability.”