Panalpina reports growth in first half

The freight transport and logistics group, Panalpina, increased its net forwarding revenue in the first six months of 2008 compared to the first half of 2007 by 7.8%.

In relation to the transport volume, Panalpina again managed to gain additional market share both in air freight as well as ocean freight.

Gross profit was down by 3.9%, but currency adjustments left it at 1.9% above last year? figure. Net earnings (CHF 76.7 million) were once again impacted by the situation in Nigeria. Panalpina intends to withdraw its domestic service portfolio from Nigeria, which is planned to be taken over by local investors.

Compared to the market, Panalpina outperformed both in air and ocean freight. Its air freight tonnage grew by 6.1% (market growth at about 2-3%), and ocean freight volume grew by 9.4% (market growth at 5-6%). In both core activities, a slowdown of the economy became apparent for the first time in June.

Based on net forwarding revenue, air freight grew by 13.1% and ocean freight by 6.7%. At the gross profit level, ocean freight improved compared to last year? figure by 6.3% while air freight declined by 8.8%, mainly due to rising fuel costs and decreasing demand.<Korea Shipping Gazette>