Supply Chain Research

Freight forwarder Panalpina reported third quarter revenues that were 13% higher than a year earlier. That’s 5% better than analysts’ expectations on strong airfreight volumes. However, profitability (indicated by EBITDA) was 5% weaker than expected, the 11th time in the past 12 quarters that Panalpina has missed estimates. Panalpina has the lowest EBITDA margins in the sector at 2.8% vs. an average of 6.1%. A similar issue was seen at K+N, and results from high levels of competition among forwarders. At the same time there were higher container rates in part due to carrier consolidation...