Air freight volumes rise for Panalpina

Panalpina saw improved group level profitability in the first half of 2014 as air freight volumes grew four per cent over prior year.

However, the Switzerland-based global logistics operator said that unit profitability in both the air and ocean freight segments was affected by a “challenging market”.

While air freight rates “remained under strong pressure,” Panalpina put the focus on trade lane optimisation and expects the air freight market to grow by between 3-4 per cent in 2014.

Panalpina’s half year air freight volume growth to 417,000 tons was in line with the market. Earlier this month, Swiss logistics rival Kuehne + Nagel reported a similar half year rise in air freight volumes, up 3.9 per cent to 580,000 tons.

Second quarter air freight volumes at Panalpina were up by 1.8 per cent to 213,000 tons, compared with a 6.3 per cent surge in the first three months of 2014.

The Panalpina group’s total gross profit and earnings before interest and tax were “significantly impacted” by currency movements although both financials increased two per cent, reaching SFr777.9 million and SFr60.1 million respectively.

Panalpina chief executive Peter Ulber said that there “is still a lot of work to be done in terms of profitability”, especially in ocean freight.

Added Mr Ulber: “The fact that low margins have absorbed much of the growth in the first half of 2014, particularly in ocean freight, goes to show just how important it is that we stay absolutely on course with our strategic execution.

“Turning around loss-making operations continues to be our firm focus. In the mid- and long-term better IT systems and processes will help us improve productivity and profitability as we keep restructuring and rolling out our new operational system SAP TM.”

Source: http://www.aircargonews.net/news/single-view/news/air-freight-volumes-rise-for-panalpina.html

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Air cargo industry needs a structural redesign

The freighter plane may become a thing of the past if airlines failed to devise strategies to make their cargo operations more efficient, an aviation industry specialist has warned.

The industry needs a structural redesign, said Glyn Hughes, director of cargo industry management at International Air Transport Association (IATA).

Air cargo volumes have remained flat since 2010, he said during IATA’s annual general meeting.
IATA predicts cargo volumes will total about 52 million tons this year, effectively unchanged since 2010.

The $6.8 trillion worth of goods transported by air cargo every year represents 35 percent of international trade by value but only 0.5 percent of total volumes, Hughes pointed out.
He called for more drastic changes to shorten transport times and regain ground lost to the shipping industry.

Some carriers have already reduced the number of freighter planes they operate, he said.
Air freight built a reputation for getting bulky, expensive goods from A to B as quickly as possible. But as paperwork has increased, the average time it takes to shift a product from the manufacturer to the final importer stands at 6.5 days, compared with Lufthansa Cargo’s boast in the 1960s that the process took only three days.

High value goods such as electronics have also become smaller, meaning they take up less space and do not need dedicated freighters for transportation.

These trends are pushing companies such as AstraZeneca, Ericsson and Sony to transport more of their pharmaceuticals and electronics via sea at lower cost. In addition, growing demand for plane travel means more and more freight is being transported in the holds, or bellies, of passenger planes.
Airlines have so far reacted to the tough cargo market by cutting capacity and taking freighters out of service.

To remain competitive in the long term, airlines need to cut shipping times and position themselves as premium operators specializing in high value or perishable goods, such as flowers, or bulky over-sized goods, delegates said.

To boost competitiveness and revitalize trade growth, the industry is working toward a goal of reducing shipping times by 48 hours before 2020.
Of the 6.5 days on average it takes to get air freight from door to door, only a few hours are actually spent in the air, according to IATA.

It is therefore encouraging airlines to simplify procedures with freight forwarders and ground handlers, and to cut down the amount of paperwork it creates by moving to digital documents.
The association said that just 14.3 percent of contracts, known as airway bills, were in electronic form in 2013, short of its target of 22 percent for 2014.

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The No. 1 platform for the sector: Asia’s leading event for air cargo and logistics

Air Cargo China is the leading event in the air freight sector in Asia – and it is continuing to grow in size and significance.

Come along and present your company and its expertise at this major exhibition, taking place for the sixth time from June 17 to 19, 2014, at the Shanghai New International Expo Centre.

On these dates a dynamic trade audience from around the world will be converging on Shanghai, that makes Air Cargo China to such an interesting platform for you, as a place to present your latest products and solutions and as a place to engage in intensive networking.

The Air Cargo China Conference
 
The experts’ view on sector trends Again this year, the international air freight conference is being held as part of Air Cargo China 2014. This forum attracts decision-makers in the industry to come and talk about the latest challenges facing the air cargo business – with a special focus on the Asian market of course.

As an exhibitor you also profit from the presence of the entire Asian logistics and transport sector, as Air Cargo China is an integrated part of transport logistic China.

This leading show for the Far East has expanded fast to become the most important meeting place for the transport, logistics and air cargo industry in this region.

Seize this opportunity, and secure your foothold in the markets of Asia.

Source: http://www.aircargochina.com/en/home/home.html

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