In what it says is a “new trend”, Panalpina has completed a 6,000 km cross-border, overland journey to deliver 125 tonnes of industrial equipment from Wuxi, a city near Shanghai, China, to Tokmok, Kyrgyzstan, in just 14 days.
Although cross-border trucking from China to Central Asia is a relatively new trend, it is becoming increasingly popular, as it represents a reliable and cost-effective solution with a high level of security, according to Panalpina.
The global logistics and forwarding giant said the shipment, for Swiss-based Bühler Group, was in line with China’s Belt and Road strategy. Bühler, whose core technologies are in the areas of mechanical and thermal process engineering, needed an overland transport solution for its first production line for export to Kyrgyzstan.
As Bühler’s global strategic partner, Panalpina used a tailor-made solution with eleven flatbed trucks to carry the 935-cubic-metre load. The equipment was collected at different locations in Wuxi and transported to Xinjiang in western China, and then across the border at Torugart Pass, one of only two border crossings between the countries. Once on Kyrgyz soil, the convoy headed north to its final destination at Tokmok.
Panalpina says its customised end-to-end solution included a cargo packing plan and wooden crate repacking to maximise loading capacity; customs clearance; and transshipment to foreign trucks.
The Panalpina Suzhou business unit acted as command centre, setting up effective communication channels at multiple points in China and abroad for complete visibility and control.
“Panalpina is well-known and appreciated in the Chinese market for its experience in handling scheduled and one-off over-dimensional projects and maintains a high level of readiness,” it adds.
Meanwhile, Panalpina’s Air Freight volumes increased 4.0 per cent in the first nine months of 2018, in line with what it says was estimated market growth of 4.0 per cent. Compared to the same period of last year, gross profit per tonne increased 12 per cent to CHF 705 (USD 703.70) and YTD 2017: CHF 632, resulting in a gross profit of CHF 530.1 million (YTD 2017: CHF 456.0 million).
EBIT in Air Freight increased from CHF 69.4 million to CHF 80.2 million. The EBIT-to-gross-profit margin for the first nine months of 2018 came in at 15.1 per cent compared to 15.2 per cent a year before.
Group gross profit increased 9.0 per cent to CHF 1.12 billion in the first nine months of 2018 (YTD 2017: CHF 1.02 billion), while total operating expenses decreased from CHF 920.9 million to CHF 907.8 million.
EBIT and consolidated profit increased year-on-year, EBIT reached CHF 83.2 million compared to CHF 72.1 million a year before and the EBIT-to-gross-profit margin stood at 7.5 per cent up from 7.0 per cent. The consolidated profit increased from CHF 48.4 million to CHF 51.0 million.