Panalpina targets 500 LCL Ocean Freight services in 2014

Panalpina added a record number of Less than Container Load (LCL) services to its network in 2013, reaching 450 weekly services worldwide. Some services were altered and others added as the company expands and improves its global LCL network, which is expected to reach 500 services by the end of 2014.

Panalpina enters the New Year with a bigger and better LCL network. The company’s drive to expand its global footprint has seen it add 41 LCL services in the past year while also adapting many of its current routes to offer an improved service. Panalpina’s most recent additions include Santos to Veracruz, Dubai to Dammam and Singapore to Casablanca.

“Our new and improved LCL network cements our place as one of the most flexible and reliable LCL service providers in the world,” says Frank Hercksen, Panalpina’s global head of ocean freight. “As the modal shift from air freight to ocean freight continues, we are giving customers more options and better choices to handle any transport need anywhere in the world.”

Rather than simply expanding its LCL network, Panalpina monitors and evaluates trade growth and global economies to identify routes where an LCL service can either be implemented or improved. Over the course of 2014, the company expects to add a further 50 services to its LCL network, taking its total to 500. Roughly 15% of Panalpina’s current 450 LCL services operate two or three sailings a week, adding to the network’s flexibility.

Industries

The majority of Panalpina’s LCL services are used by the automotive and manufacturing industries, which accounted for almost 30% of its LCL volumes in 2013. Consumer & retail and fashion customers follow close behind with 25%. Interestingly, LCL use from hi-tech and telecoms customers came in third. These industries accounted for a little under 20% of the LCL volumes in 2013. This is mostly down to the rise in consumer electronic shipments moving from air freight to ocean freight, as a cost saving measure.

“Our LCL network is a flexible and cost effective alternative to air freight that many of our existing air freight customers appreciate – particularly from the hi-tech and telecoms industries,” says Clas Thorell, global head of ocean freight LCL at Panalpina.

Regions

Intra-Asia remains very much in focus for Panalpina’s LCL network. In the past two years, the company has significantly increased its services in the region to well over 100. Its busiest LCL trade lane is China to Southeast Asia.

Following close behind Intra-Asia shipments are shipments travelling from Asia into Europe, Latin America, the US and Canada. Latin America is another key region where new LCL services are under constant development.

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