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Kenya: Panalpina Airflo accelerates perishables

In an air freight industry characterized by overcapacity and struggles to cope with macro headwinds and technological trends such as miniaturization, 3D printing, and the commoditization of technologies, which has reduced surges in demand for ‘must-have’ products, finding verticals that offer stable and profitable sources of cargo has become increasingly difficult. But, according to Panalpina, one such source of succor is the perishables business, defined as products that are time and temperature sensitive.

Last November, the Swiss forwarding giant expanded its perishables logistics business with the acquisition of a majority stake in Airflo, Kenya’s second largest airfreight forwarder and a specialist in the worldwide export of perishables such as fresh flowers and vegetables flown from Africa into key European markets, most often via Amsterdam Airport Schiphol.

Airflo employs over 150 staff in Nairobi and the Netherlands, organizing up to 1,500 temperature-controlled shipments each week and more than 40,000 tons of flowers each year, so its addition to Panalpina’s air freight forwarding division was something of a coup. Indeed, it is one of the reasons why Lucas Kuehner, global head of airfreight, believes Panalpina will continue to grow its air freight volumes by around 5 percent this year in line with Q1 performance, even as global air freight markets remain flat.

Read more at aircargonews.com
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