Swiss freight forwarder Panalpina says it will concentrate on controlling costs as its airfreight business faces continued pressure on margins.

It says Q2 airfreight revenues increased by 10 per cent year-on-year to SFR700 million with a 6.6 per cent improvement in tons carried to 240,000 amid rising freight rates.

However, it estimates the overall market grew by eight per cent compared to last year.

 

Its gross profit per ton was down 10.9 per cent yoy and earnings before interest and tax (ebit)/gross profit fell to 13.3 per cent from 15 per cent a year ago (last year’s results adjusted for the acquisition of perishables firm Air Connection).

 

The company said high demand for airfreight capacity had pushed up rates, which put margins under continued pressure.

 

Panalpina chief executive Stefan Karlen said: “While we are confident we can improve unit profitability in ocean freight in the second half of the year, unit profitability in airfreight will remain under pressure.

 

“We will therefore concentrate on what we can influence directly: Controlling cost and pushing ahead with our operations transformation program.”