Panalpina’s 2015 annual report hits the streets

Global supply chain services giant Panalpina has published its full annual report for 2015. It adds some more flesh to the bones of the summary of 2015’s performance that was released a couple of weeks ago. It also offers some more insight into the company’s plans for the rest of this year.
During 2015, Panalpina forwarded 836,200 tons of air freight, down by 2.5% over the comparative figure for 2014. However, it expanded its array of air freight services during those 12 months, the company said, and it is eyeing further opportunities for this year. The growing market for perishables is regarded as a “fast-growing sector with potential for both air and ocean freight”, for example. Chemicals and healthcare are other sectors that Panalpina is looking to exploit further.
Yet the airfreight market is likely to remain difficult in 2016, with no significant rebound in key segments such as the energy sector. Air cargo capacity is set to increase while demand for freight space remains flat, Panalpina warns. Nevertheless, the company said it aims to boost its market share by optimising its charter network still further and building volumes in areas such as the aforementioned perishables sector, which should lessen dependence on cyclical business. The acquisition of Airflo, Kenya’s second-largest air freight forwarder and one which specialises in the export of flowers and vegetables, should not only increase Panalpina’s perishables tonnages but also ensure substantial volumes on routes northbound out of Africa.
In summary, CEO Peter Ulber remarks: “I see great opportunities ahead to build continued success for our business.” Overall priorities for this year are clear, it seems: “to focus on opportunities that will drive growth organically, by way of acquisitions and through innovation, and to continue to improve productivity and optimise costs across all businesses and geographies”.