Panalpina Annual Report 2011

18
Report of the Executive Board
Product Divisions
Panalpina expands its product range in all divisions
Air Freight Ocean Freight
Key figures
848,000 tons of freight moved
Generated 50 % of Panalpina’s net forwarding revenue
Market conditions
2011 started out fairly strongly but dropped off in the
second half of the year. The air freight market stayed
very soft in most major trade lanes until year-end.
Highlights
� Panalpina has become one of the world’s biggest
Qualified Envirotainer Providers for active cooling
solutions. In 2011 the Company offered a total of
43 accredited locations in 27 countries.
� Air Freight improved successfully its profitability
per cargo unit.
� Panalpina launched a second twice-weekly transpacific
service between Hong Kong and Huntsville and
between Huntsville and São Paulo (Viracopos).
� Air Freight implemented a new centralized global procurement
process and system.
� The Cargo 2000 Certification and the Global Air
Sourcing Initiative were successfully introduced to
Panalpina’s global carriers. These credentials ensure
efficient air cargo transport.
� Panalpina signed contracts for the upgrade of two
B747-8F aircraft, the latest environmentally friendly
freighter technology from Boeing. Operated with Atlas
Air, they will replace the two existing B747-400F by
2012.
Outlook
The soft market conditions will persist into 2012, though
with an expectation for growth in the second half.
Panalpina’s Air Freight business will focus on growth in
the five strategic trade lanes (Asia–Europe, Asia–North
America, Asia–Latin America, Asia–Middle East and
Intra Asia).
Panalpina Annual Report 2011
Key figures
1,310,000 TEUs transported
Generated 36 % of Panalpina’s net forwarding revenue
Market conditions
The business faced substantial overcapacity in major
east-west trade lines. Ocean freight rates deteriorated
to unsustainable levels, resulting in massive losses
for carriers, very much like in the 2009 shipping season.
Highlights
� Panalpina increased its worldwide footprint, recorded
volume growth and therefore gained market share.
In fact, 2011 marked the highest volumes ever in
Panalpina’s Ocean Freight.
� Ocean Freight further focused on its profitability per
cargo unit.
� Panalpina’s Ocean Freight business aligned its global
strategies and established a strong focus on trade
lane growth, niche verticals, and managed solutions.
Integrated systems, processes and data quality are
an essential part of the growth strategy.
� Panalpina adjusted its global Less than Container
Load (LCL) hub setup and launched in excess of
50 new LCL services. Operated by the in-house carrier
Pantainer Express Line, they support customer
needs for simplicity and global reach through a single
integrated LCL network. The new services reduce
transit times and CO2 emissions.
Outlook
Overcapacity on the main east-west routes is expected
to decrease in 2012 while rates will increase. Panalpina
Ocean Freight will concentrate on five stra tegic trade
lanes (Asia–Europe, Asia–North America, Asia–Latin
America, Asia–Middle East and Intra Asia).