Panalpina cautious on market outlook

Highlighting increasing political uncertainties and trouble spots around the world, Swiss-based international freight forwarding and logistics group Panalpina offered a cautious market outlook as it presented its third-quarter results suggesting that although there was no evidence yet of volumes weakening, forwarding margins are expected to remain under pressure.


Panalpina cautious on market outlook


Highlighting increasing political uncertainties and trouble spots around the world, Swiss-based international freight forwarding and logistics group Panalpina offered a cautious market outlook as it presented its third-quarter results suggesting that although there was no evidence yet of volumes weakening, forwarding margins are expected to remain under pressure.

Panalpina CEO, Peter Ulber, said that “given the many political uncertainties and trouble spots around the world – anything from the Ebola situation in Africa to the sluggish European economy – we are adapting our outlook towards the lower end of what we communicated three months ago. “So we expect the air and ocean freight markets to grow by three and four per cent respectively (in volume) in 2014. Of course, for Panalpina, the aim is still to gain market share in both of these areas.”

“When we look at our Q3 numbers, there’s actually no sign of a weakening in volumes,” acknowledged Ulber, “so, if anything, it’s really a sentiment. Th e only thing we can possibly see is that the (air freight) peak season from Asia is, at the very least, delayed. Some expect that there is still going to be peak season but that it is going to be short and heavy. It is probably too early to see a trend. So, more a sentiment than hard fact.”