Annual Report 2010 (PDF, 5.2MB) - Panalpina Annual Report 2012

Reporting Regions
Europe / Middle East / Africa and CIS
24
Positive results amid market challenges in EMEA
In the largest reporting region, some countries and sub-regions are in the midst
of strong recovery while others still reel from the significant drop in oil prices
and a delayed impact of the economic crisis. Despite the variable economic situation,
Panalpina achieved important milestones in the region and continued to win
new contracts.
Areas: 11
Benelux, Central Europe, Eastern Europe, France,
Iberia, Northern Europe, Northwest Europe,
Southwest Europe, Sub-Saharan, Black and
Caspian Sea, Arabian Belt
Net revenue: CHF 3,640 million
Headcount: 6,745
Europe: growing volumes and improved market
conditions
In April of the year under review, Panalpina was the first
forwarder to transport air freight into Europe after several
days of aircraft grounding due to the ash cloud which
befell the continent following the eruption of the Eyjafjallajökull
volcano in Iceland. With transatlantic customers
under pressure to ship their goods during the extended
period of closed air space, Panalpina pulled out all the
stops to secure temporary landing rights in southern Spain
so that the Dixie Jet could fly back to Europe. This made
Panalpina the first and only freighter to continuously service
Europe with four rotations during the crisis week.
After getting off to a slow economic start, most of Europe
began to expe rience economic recovery starting in the
second quarter of the reporting year. However, market
conditions were very competitive and despite recovering
volumes, margins remained under heavy pressure.
In the United Kingdom, the downturn in the oil and gas
sector continued with customers maintaining tight control
on spending and investment. The market continued to
shrink as did volumes and the failing Irish economy restricted
opportunities. As the reporting year drew to a close, there
were some positive signs that the oil and gas industry was
in the early stages of an upswing.
On the positive side in the UK, Panalpina continued to build
on its promising retail and fashion success of the previous
year winning a significant supply chain management contract
with a leading global design house.
In Germany and Poland, market confidence was much
better than in 2009 with the automotive industry contributing
significantly to the upswing. Panalpina Germany
also tremendously expanded its LCL volumes as well
as its Buyers Consolidation business in 2010. The cornerstone
of this growth was the 30,000 square meters logistics
facility located in Hamburg’s harbour. The modern facility
guarantees the secure consolidation and loading of goods
where all processes are fully controlled by Panalpina.
In 2010, Panalpina Germany and Poland won a number of
new logistic contracts for customers in the hi-tech, retail and
fashion, automotive and telecom industries including the
implementation of a logistics concept to ship highly sensitive
fibre optic parts from Germany to Russia.
Conditions improved significantly in Northern Europe in
the year under review. Panalpina secured its first logistics
contract in the region and carried out the first trial train
shipment from China to Europe for a major fashion retailer.
The region also profited from its strict commitment to compliance,
enabling a retail and fashion business win with
a customer who cited compliance as a major decisionmaking
factor.
Panalpina France continued to grow its presence in the
retail and fashion sector; now counting most major brands
among its customers. Plans are in place to initiate regular
direct air freight transport between Paris and China to support
market growth.
In Southwest Europe, Panalpina Italy achieved a major
end-to-end supply chain management win with a leading
fashion house. Throughout the reporting year, the focus
remained strongly on maintaining the company’s high
Panalpina Annual Report 2010