After several years of enduring a slump in oil-and-gas-related cargo, Swiss logistics company Panalpina was awarded a long-term contract by an undisclosed company to manage transportation and logistics for a gas project in Iraq.
The contract will run for at least five years and involve 1,800 40-foot equivalent units (FEUs) of less-than-container load oceanfreight as well as 1,200 tonnes of airfreight transportation per year. Panalpina will also handle customs clearance, warehousing, full order management and in-house staffing, as well as any necessary air and ocean chartering.
The large contract marks a positive note for Panalpina after a lackluster first half for the company’s profits, as declines in the oil prices led to a reduction in petroleum exploration projects. Other factors, such as rising freight rates, also pressured Panalpina’s margins.
Panalpina frequently works with oil-and-gas companies, including the undisclosed company party to this contract. The two companies have worked together since 2010.
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