Panalpina warns shippers to book now to offset early peak-season congestion

Panalpina is warning shippers to book early to avoid higher rates and delays, as the Swiss forwarding and logistics company moves to accommodate an early peak season. This year’s Far East peak season is expected to start earlier than the global peak, and may be even stronger than the already robust 2016 season.

On the capacity side, Panalpina is warning that airlines will phase out extra passenger flights – and capacity – for the winter season. The forwarder also noted that shippers can’t expect past levels of capacity growth, which used to be fueled by Middle Eastern carriers that are now reevaluating routes.

“It is in the shippers’ interest to act now and take precautionary actions to avoid capacity shortages, longer transit times and potential delays,” said Marc van Dommele, regional head of Air Freight Europe at Panalpina. “Such delays can result from busier airports and ground handling agents that have been left crippled by personnel cuts and now cannot reinforce staff on such short notice. Overbookings and capacity shortages could also lead to cargo not being uplifted at all.”

Overall market rates are well above last year’s, and show no signs of dropping, the forwarder warned. “The closer we get to peak season, the more airlines will increase rates for secured capacity. And when this happens, we will have to pass these price increases on to shippers,” said Lucas Kuehner, Panalpina’s global head of Air Freight.

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