Panalpina Brazil invests in cold chain logistics solutions

With extensive expertise in the healthcare and pharmaceuticals market and being recognized as one of the leading logistics operators in the country for this segment, Panalpina Brazil announces the expansion of its operations with a considerable investment in end-to-end logistics solutions for the cold chain.

The most significant aspect of the venture involves the company warehouse in Cajamar, São Paulo, now exclusively dedicated to the cold chain segment, with the capability to store various types of temperature-controlled cargo, such as medicines, cosmetics as well as food and perishables. The facility, with over 4,000 m? of total area, has three cold chambers: the first is set to -20°C; the second to temperatures ranging from 2°C to 8°C; and the third, and largest, covers temperatures from 15°C to 25°C.

Tonet also stresses the facility’s sustainability. “For the fluids that are used for cooling down the warehouse, we chose to adopt a solution of ammonia, which is eco-friendly and sustainable, because it is an organic rather than a chemical substance. In other words, the production process does not involve the use of fossil fuels; on the contrary, it uses a natural compound,” he adds.

Besides warehousing, Panalpina Brazil also offers national and international logistics for temperature-controlled cargo. “Our transport and distribution network was fully revamped and today it has a much broader scope with nationwide coverage and international connections. For deliveries in Brazil, we also use domestic air freight. Both our air and road subcontractors are able to handle any type of temperature-controlled cargo in a fully compliant manner,” he points out.

Tonet also highlights the monitoring system adopted by the company, SmartView. The system allows customers to monitor, in real time, the cargo temperature and humidity using sensors and radio-frequency identification (RFID) technology installed at strategic locations, such as at the airports of Guarulhos (SP) and Viracopos in Campinas (SP), at the logistics operator partner terminal in Santos (SP), and at the Panalpina warehouse in Cajamar (SP). While Panalpina’s operations in Guarulhos and Viracopos are already GDP-certified (Good Distribution Practice), Cajamar will follow this year.

Panalpina Brazil’s latest solutions and the company’s full portfolio of products and services will be presented at the largest logistics, freight forwarding and foreign trade event of Latin America, Intermodal South America, which will be held from March 19 to 21, at São Paulo Expo, in São Paulo.

Panalpina Swiss insurer Baloise relies on Panalpina’s Trans-Siberian route

The insurance company Baloise Group has chosen Panalpina’s tried and tested Trans-Siberian rail service to transport more than 3,400 editions of its new board game from Shanghai, China to its headquarters in Basel, Switzerland.

Printed and produced in Shanghai, the 3,412 Baloise board games traveled more than 9,000 km from China to Europe over 20 days. Weighing 11 tons and packed into containers, the games went by rail from China ? through Kazakhstan, Russia and Belarus ? to Poland and Germany, coordinated by Panalpina’s regional hub in Vienna, and were then loaded onto trucks to go to Switzerland. The games reached Basel a week ago and will now be further distributed to Baloise’s offices in Belgium, Germany and Luxembourg.

In September 2016, Panalpina launched its first own-controlled Less than Container Load (LCL) rail service from China to Poland. Own-controlled means Panalpina takes care of pick-up and consolidation in China and deconsolidation and delivery in Europe.

“We take care of the entire transport, from pick-up and consolidation in Shanghai, via rail to Warsaw, Poland, where we deconsolidate the cargo and deliver to final destinations across Europe by truck,” says Pascal Kaltenrieder, Panalpina’s business unit manager for Basel, Switzerland.

Road and rail services are gaining ground as a reliable, cost-effective and secure alternative to air and ocean transportation. Panalpina Poland was recognized as one of the best rail freight providers at the Logistics Provider of the Year 2018 awards ceremony, held in Warsaw at the end of January 2019.

Innovator teams battle it out in Panalpina’s first Kickbox to develop new digital solutions for logistics

An algorithm for potential lost customer control in logistics was the winner in the first Kickbox organized by the Panalpina Digital Hub, Panalpina HR and Zurich-based incubator BlueLion. The winning entry came from the team Capture+ from Panalpina Switzerland, which was among three finalists that pitched their Kickbox ideas to a jury in Basel on February 26.

What’s a Kickbox? It’s an innovation process that Adobe developed for its own use and then open-sourced to share with everyone. It is both a process for individuals and a system for deploying

that process across an organization at scale. Watch this video by Adobe to see what a Kickbox is about.

Panalpina’s first Kickbox

In a joint project with Panalpina’s Human Resources, the Panalpina Digital Hub ? which explores innovative technologies, develops new digital solutions for customers and engages with digital start-ups ? organized the Kickbox to connect with employees in three countries, foster entrepreneurial spirit, develop ideation skills and generate digital innovation pilots.

A total of 30 business ideas for large-scale process optimization were submitted. Seven were chosen to participate, and the kickoff took place at the BlueLion offices in Zurich back in October 2018.

The teams then worked on their ideas back in their countries, with continuous coaching from BlueLion on corporate design thinking, and met for their final presentations at the Panalpina headquarters in Basel on February 26.

Participant teams had three minutes to pitch their ideas and five minutes for a Q&A session with a jury including Kaija-Leena Korolainen, regional head of Human Resources Europe; Lucas Kuehner, global head of Air Freight and member of the Executive Board; Markus Sandbrink, regional head of IT Europe; and Luca Graf, corporate head of digital innovation.

Capture+ for the win!

An algorithm for potential lost customer control developed by Sandro Zanetti, Manuela Werkle and Andre Kaiser of the Capture+ team from Panalpina Switzerland took the first prize.

Second place went to Wojciech Gulaj, Pawel Gryszkiewicz and Katarzyna Listkiewicz from the team QR code from Panalpina Poland for their idea on integrating subcontractors with Pantrace, Panalpina’s global track and trace tool, for quick and accurate updates.

Mario Pallisch and Sophie Puschacher from the BidBuddy team from Panalpina Austria finished third with their robotic buddy to simplify Total Landed Cost (TLC) calculation as well as the quotations for spot- and tender-inquiries.

What’s next

The three teams will now work with Panalpina experts in these areas to ensure that their ideas are steered through completion.

Other ideas that didn’t make it to this Kickbox will also be taken up by the Panalpina Digital Hub for further development, as the results of these pilots are key. More importantly, the innovation process behind the Kickbox, while working directly with customers, will allow Panalpina to develop new potential while remaining flexible.

In short, the teams will "get closer to the customer, solve a real problem, and verify with real users," says Cedric Rutishauser, senior venture development manager at the Panalpina Digital Hub.

“Predictive analytics and artificial intelligence will optimize products and services, and create new ones, as can currently be seen in Amazon’s recommendation engine. The Capture+ algorithm shows great potential in this area,” adds Luca Graf, Panalpina’s head of digital innovation.

The Panalpina Digital Hub focuses on innovative technologies with a potentially high impact on the freight forwarding and logistics industry, such as the Internet of Things (IoT), cloud computing, predictive analytics, artificial intelligence (AI) and blockchain.

Panalpina pushing for accelerated growth after a successful 2018

International freight forwarding and logistics company Panalpina ended the year 2018 with a historic record in Air Freight volumes, a recovering Ocean Freight product and solid profitability in Logistics. For the full year, Panalpina’s reported EBIT increased from CHF 103.3 million to CHF 118.4 million (+15%) and the reported consolidated profit increased from CHF 57.5 million to CHF 75.7 million (+32%). In 2019, Panalpina will continue its strong customer focus, push for accelerated growth and launch an industry-leading customer portal.

“Panalpina performed strongly overall in 2018, which was another year with a very dynamic market environment. Air freight growth rates were strongest in the first quarter of the year, but markets slowed down in the following quarters. The softer than expected peak season meant that we could not pass on the higher procurement costs to our customers. For the first time in our history, we broke through the one-million ton barrier, further strengthening our position as one of the world’s top air freight providers,” says Panalpina CEO Stefan Karlen. “In Ocean Freight, we improved EBIT with every quarter, and even though a small loss still resulted for the full year, we achieved the turnaround. Logistics delivered an excellent EBIT result. In all, our service quality was well-received by customers and we successfully executed on our strategy.”

Panalpina Group: Results for the full year 2018

(CHFmillion) YTD 2018 YTD 2017
Net forwarding revenue 6,035.7 5,532.8
Gross profit 1,499.7 1,397.8
EBITDA 289,5 146.2
EBIT 118.4 103.3
Consolidated profit 75.7 57.5
Earnings per share (in CHF) 3.29 2.48
Dividend per share (in CHF) 3.75 * 3.75
* Proposed to the annual general meeting

Double-digit growth for EBIT and consolidated profit

In 2018, Panalpina’s gross profit increased 7% to CHF 1,499.7 million (2017: CHF 1,397.8 million), while total operating expenses decreased 3% to CHF 1,210.2 million (2017: CHF 1,251.6 million). Reported EBIT reached CHF 118.4 million (+15%) compared to CHF 103.3 million a year before and the EBIT-to-gross-profit margin stood at 7.9%, up from 7.4%. The consolidated profit increased from CHF 57.5 million to CHF 75.7 million (+32%). Currency impacts in 2018 were close to nil on consolidated level, leaving EBIT and consolidated profit in 2018 at CHF 118.3 million and CHF 75.7 million respectively.

Air Freight

Panalpina’s Air Freight volumes increased 4% in 2018. For the first time in its history, the company transported more than one million tons, specifically, 1,038,678 tons of air cargo last year (2017: 995,900). From January to December, Air Freight tonnage increased with every quarter. Compared to the same period last year, gross profit per ton increased 7% to CHF 685 (2017: CHF 642), while overall gross profit increased to CHF 711.7 million (2017: CHF 639.4 million). Reported EBIT in Air Freight decreased from CHF 110.3 million to CHF 108.2 million. The EBIT-to-gross-profit margin came in at 15.2% compared to 17.3% a year before.

Ocean Freight

Panalpina’s Ocean Freight volumes decreased 2% year-on-year. Panalpina transported 1,484,114 TEUs (twenty-foot equivalent units) in 2018 (2017: 1,520,490 TEUs). Gross profit per TEU increased 7% to CHF 301 (2017: CHF 281), bringing gross profit to CHF 446.1 million (2017: CHF 427.2 million). An EBIT loss in the first quarter of 2018, followed by three positive quarters, resulted in an EBIT loss for the full year of CHF 1.8 million, improving over the loss of CHF 15.1 million in 2017.


In Logistics, gross profit increased 3% year-on-year to CHF 341.9 million (2017: CHF 331.1 million). For the full year, Logistics posted the highest EBIT ever, CHF 11.9 million, compared to CHF 8.1 million for the same period last year.


In light of the good performance and healthy balance sheet, the board of directors will propose a dividend payment of CHF 3.75 per share to the annual general meeting on May 9, 2019. This is equivalent to a dividend yield of 2.9% (based on the 2018 year-end share price).


“We have put in place a scalable operational platform and organization, and are now eager to push for accelerated, substantial organic and external growth. In 2019, we will even further increase our customer focus. The highlight will be the launch of the new portal that fully digitalizes our customer offerings in a modern, engaging manner. In the long term, this portal will enable our customers to manage their supply chain needs proactively in a self-service mode, and facilitate an automated and fully integrated customer journey with personalized supply chain tools,” says Karlen.

Panalpina joins Cargo sous terrain initiative aimed at revolutionizing logistics

Imagine a futuristic world where cargo moves through an underground network of tunnels ? automatically, quietly and intelligently enabling just-in-time deliveries. Panalpina is pleased to join Cargo sous terrain (CST), the Swiss-led consortium set to transform logistics and propel the industry into digitalization. As a shareholder, Panalpina will seek representation on the CST supervisory board and adopt a leading role in developing the CST logistics system and sharing expert know-how.

CST envisions an automated, digitally controlled comprehensive logistics system in Switzerland by 2045, aimed at promoting economic competitiveness and improving quality of life. CST will ensure the safe, secure and punctual delivery of containers, pallets and parcels. At its backbone is an underground system of transport tunnels linking the business centers north of the Alps with environmentally friendly distribution in cities and industrial areas.

The first section of the tunnel system is expected to be ready in 2030 and will connect the logistics hub Härkingen-Niederbipp (near the capital Bern) with Zurich. When completed, the fully automated network will extend from Geneva to St. Gallen and from Basel to Luzern, with an additional branch from Bern to Thun. The full network will have 500 km of tunnels, serving more than 80 hubs for the loading and unloading of industrial and commercial goods for about 10 million people. With 1 million square meters of surface underground, CST will be the largest warehouse in Switzerland.

The full underground network connecting Swiss business centers with cities and industrial areas will have 500 km of tunnels when completed. (Image by Cargo sous terrain)

“CST is the most ambitious and advanced logistics project for Switzerland in the next decades and could potentially serve as a role model for the rest of the world,” says Stefan Karlen, CEO of Panalpina. “Our goal is to be at the forefront, to learn and help shape the future infrastructure for freight forwarding and logistics.”

CST will reduce the number of trucks on existing roads, in particular at traffic bottlenecks, by 40 percent. Freight traffic in cities will be reduced by up to 30 percent, thanks to the systematic and efficient delivery by electric vehicles that meet urban requirements. The system will run entirely on renewable energy. With end-to-end digitalization, the system will operate in an extremely flexible environment, with dynamic deliveries in small units and guaranteed arrival times for goods.

End-to-end digitalization from source to destination will make cargo transport smarter, more efficient and sustainable in the long run. (Image by Cargo sous terrain)

“Panalpina aims to play an active and decisive role for Cargo sous terrain in co-designing highly automated operational systems to connect metropolitan areas and optimize intra-city logistics,” adds Luca Graf, Panalpina’s head of Digital Innovation. “We see the possibility to apply disruptive technologies such as predictive logistics and advanced recycling to achieve this vision.” As a shareholder, Panalpina will seek representation on the CST supervisory board.

The building permit and planning phase of CST will start with the passing of the CST law, expected in late 2020. As a first step, the Swiss Federal Council will open consultation on the new legislation that will allow CST to become reality.

Kuehne + Nagel increases annual results

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, on the Group's annual result: “2018 was another successful year for Kuehne + Nagel. Despite the market weakening at the end of the year, we succeeded in increasing our net turnover, gross profit and EBIT once again. The consistent implementation of our business strategy was decisive for this success. By introducing additional digital platforms, with new highly specialised solutions and targeted acquisitions, we reached important milestones last year and will continue to pursue our journey. Even though the growth momentum of the global economy slowed down at the end of 2018, we confirm our goals for the year ahead. In 2019, we aim at growing twice as fast as the market and improving our results further, complemented with selected acquisitions to our portfolio.”

Development of business units
With a 7.7 percent growth in volume, Kuehne + Nagel gained again market share in seafreight and strengthened its position as the global market leader. The company handled 4.7 million standard containers (TEU) last year, representing an increase of around 335,000 TEU. Significant new business was won with KN ESP, a new digital supplier management system for key accounts introduced in early 2018. The company also launched another new digital platform ? Sea Explorer ? to provide customers with detailed comparisons for carrier services. Strong growth was recorded in the Asia-Europe trade and in US imports, particularly from Asia. In addition, intra-Asian trade lanes grew again last year. With three alliances and seven carriers in the market, the supply of capacity impacted margins which varied substantially, depending on region, trade lane and product. While the margins in European exports were under considerable pressure, those in Asia-Europe trade were growing. In this context, Kuehne + Nagel’s seafreight business achieved a solid EBIT that grew by 1.0 percent compared to the previous year. The conversion rate (EBIT-to-gross-profit ratio) was maintained at an industry-leading high level of 28.2 percent.

Airfreight continued its outstanding development in 2018. Kuehne + Nagel increased its tonnage by 11.0 percent to 1.7 million tons, thereby achieving significantly higher growth than the overall market. Industry-specific solutions for the pharma & healthcare and aviation industries played an important role in this growth. Kuehne + Nagel pursues an active M&A strategy and acquired Quick International Courier, a company in a high growth market that is one of the global leaders in time-critical transport and logistics solutions. Due to this strong growth in volume, consistent cost control and further productivity gains, EBIT grew by 13.4 percent in airfreight. At 29.5 percent, the conversion rate was once again at a high level for the industry.

Kuehne + Nagel’s excellent results in overland continued in 2018, with the company achieving significant increases in net turnover, gross profit and EBIT. Net turnover grew by 13.1 percent and gross profit by 14.3 percent. EBIT improved by 55.1 percent compared with the previous year. Business in European groupage and less-than-truckload shipments were the primary growth drivers, as well as intermodal shipments and transport management for major customers in North America. Industry-specific solutions for customers from the pharma & healthcare industry played a key role in this success. Kuehne + Nagel continues to expand on its digital competence and aims at systematically increasing the number of automated shipments to further raise efficiency.

Contract Logistics
In contract logistics, Kuehne + Nagel increased net turnover by 9.0 percent and gross profit by 8.8 percent. The company grew significantly in the USA and Asia. Growth rates of more than 40 percent were achieved in e-commerce fulfilment. The EBIT remained below last year’s figure, down by 14.3 percent, due to the review of the project portfolio and investments for a new global warehouse management system, used for the operational control of the Group’s worldwide fulfilment centers. Two acquisitions strengthened the company’s position as a leading international logistics provider for China’s automotive industry and expanded its e-commerce offering in Indonesia. Kuehne + Nagel managed 11.6 million square metres of warehouse and logistics space for its customers.

Net Turnover
The Kuehne + Nagel Group achieved a net turnover of CHF 20,774 million in 2018, an increase of 11.7 percent compared to the previous year. This increase comes from the growth in volume in all business units. Net turnover increased by 17.0 percent in the Americas (North, Central and South America), by 13.5 percent in Asia-Pacific and by 9.3 percent in EMEA (Europe, Near/Middle East, Central Asia and Africa).

Gross Profit
Gross profit, the better performance indicator for a logistics company than turnover, was at CHF 7,709 million, 9.8 percent higher than in the previous year. Gross profit improved by 14.1 percent in Asia-Pacific, by 13.6 percent in the Americas and by 8.1 per cent in EMEA.

Earnings before interest, tax, depreciation, amortisation and impairment of property, plant and equipment, goodwill and other intangible assets (EBITDA) increased by 5.1 percent to CHF 1,209 million compared to the previous year. EMEA generated the largest EBITDA contribution with CHF 693 million (57.3 percent), followed by the Americas with CHF 263 million (21.8 percent) and Asia-Pacific with CHF 253 million (20.9 percent).

In 2018, earnings before interest and tax (EBIT) improved by 5.3 percent to CHF 987 million. The Group’s EBIT margin was at 4.8 percent. EMEA contributed CHF 545 million (55.2 percent) to the Group's EBIT, followed by Asia-Pacific with a contribution of CHF 232 million (23.5 percent) and the Americas with CHF 210 million (21.3 percent).

The Board of Directors will propose a dividend per share of CHF 6.00 (previous year: CHF 5.75) to the Annual General Meeting on May 7, 2019.

Dr. Jörg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG, says: “The Kuehne + Nagel Group’s annual result demonstrates once again the company’s performance. In 2018, we expanded our position as a globally leading logistics provider and further improved our result. This confirms the strategic focus of the Kuehne + Nagel Group. In this context, the Board of Directors is looking with confidence to the 2019 financial year and ahead. In the medium and long term, the fundamental, all-encompassing transformation processes taking place in all areas of the global economy will continue to represent significant opportunities for Kuehne + Nagel going forward.”

Panalpina launches industry-leading customer portal

Panalpina announces the launch of its new state-of-the-art digital customer portal. The portal enables customers to benefit from a wide range of instant and real-time services. It is currently available to selected customers by invitation only and will be launched globally this summer.

Customers will be able to manage their entire supply chain end-to-end with all partners in one digital place. They can request an instant quote, as well as book and track their shipments in an intuitive, integrated and thus seamless flow. Self-service reporting will complement the user experience. As features are added, the portal will not only offer interaction capabilities with Panalpina’s customers, but also suppliers, and enable:

System-based procurement of services
Web and electronic channels that offer Panalpina services and lead to contract closure
Electronic channels to exchange service orders
Applications supporting shipment execution and settlement process
A wide range of integration, visibility and reporting services for suppliers and customers

Panalpina logotype

Panalpina launches industry-leading customer portal
Panalpina - Feb 20, 2019 10:45 GMT

Customers can get quotes, book and track shipments, and manage their supply chains in a seamless digital flow on Panalpina's new portal. (Image by Panalpina)
Panalpina announces the launch of its new state-of-the-art digital customer portal. The portal enables customers to benefit from a wide range of instant and real-time services. It is currently available to selected customers by invitation only and will be launched globally this summer.

Customers will be able to manage their entire supply chain end-to-end with all partners in one digital place. They can request an instant quote, as well as book and track their shipments in an intuitive, integrated and thus seamless flow. Self-service reporting will complement the user experience. As features are added, the portal will not only offer interaction capabilities with Panalpina’s customers, but also suppliers, and enable:

System-based procurement of services
Web and electronic channels that offer Panalpina services and lead to contract closure
Electronic channels to exchange service orders
Applications supporting shipment execution and settlement process
A wide range of integration, visibility and reporting services for suppliers and customers

“In the past two years, we have invested significant time and resources in developing different elements of the portal to establish the best digital experience for our customers. In particular, the quoting and shipment-visibility capabilities of the new portal are hitting the core of today’s demands,” comments Ralf Morawietz, CIO at Panalpina.

“Digitalization is the number one trend in logistics and our new customer portal is an industry game changer. Customers, partners and suppliers will increasingly expect to quote, buy, sell and deliver online using dedicated platforms and my priority is that Panalpina offers our customers an engaging, seamless digital experience,” says Stefan Karlen, Panalpina’s CEO.

“There is still significant paperwork coupled with inefficient processes in the industry,” Karlen adds. “With our customer portal, we are one step closer to creating a truly digital end-to-end enterprise which will enable us to drive down costs, shorten response time and offer multiple communication channels to our customers and trading partners.”

Statement of Panalpina related to Agility

The Board of Directors of Panalpina confirms media reports that it is in discussions with Agility Group on potential strategic opportunities with regard to their respective logistics businesses. The discussions between the two companies are at a preliminary stage.

According to its fiduciary duties, the Board of Directors of Panalpina continues to review the approach by DSV in conjunction with its professional advisers.

Further announcements will be made as appropriate.

Panalpina statement on revised proposal from DSV

The Board of Directors of Panalpina confirms that it has received a revised, non-binding proposal from DSV to acquire the company at a price of CHF 180 per share, all in cash.

According to its fiduciary duties, the Board of Directors of Panalpina is reviewing the revised proposal from DSV in conjunction with its professional advisers.

Further announcements will be made as appropriate.

Panalpina delights customers with mixed reality experience

Today, the work of third-party logistics providers (3PLs) is still very much physical, and international freight forwarding and transportation remain labor-intensive. Huge advances in technology over the past 200 years ? from the train to the automobile to the airplane ? have brought transportation to its present state: specialized and relatively inexpensive.

Transport options have proliferated and increased in complexity during the past two centuries, but since the invention of the airplane, there have been few advances in creating new kinds of transportation.

Sure, we are figuring out ways to move things more quickly, in larger conveyances, and we can build better and more efficient infrastructure to do so. But new modes of transport dedicated to moving physical goods are not where the frontier of transportation lies. Digital transformation is.

Disruptive technologies and a new customer experience

New technologies including the Internet of Things (IoT), artificial intelligence (AI) and blockchain have the potential to disrupt the business in the coming years.

Traditional logistics and transportation players are being challenged as new competitors inundate the market with innovative business models and approaches that improve upon the old way of doing things.

Panalpina, too, is in motion. We recognize that the use of information technology and the digitization of services are core pillars of our business and preconditions for future success.

Ultimately, we aim to offer customers a completely new experience when dealing with us.