The Panalpina Group made a consolidated profit of CHF80.2 million (US$79.2 million) in 2016, a year-on-year decrease of 9.1%, according to financial results released by the company.

According to Panalpina, the figure was adjusted for restructuring expenses of CHF28 million (US$27.6 million).

“2016 represented a very challenging year,” said Stefan Karlen, CEO of Panalpina. “Much lower volumes from the oil and gas sector meant that we had to restructure that part of our business during the first half-year. In the second half, the Hanjin collapse and the very busy air freight peak season led to tight capacities and soaring rates which put strong pressure on our margins. While we continued to perform well on volumes, pressure on yields impacted our profits.”

The company transported 921,400 tonnes of air cargo in 2016, 10.2% higher than in 2015. This was Panalpina’s highest air freight volume since 2007.

On the other hand, the ocean freight business performed less well, with the volume falling by 6.6% to 1,488,500 TEUs.

Panalpina said it expects the air and ocean freight markets to grow by 2% in 2017.

“The unusually strong air freight peak season, and the temporary capacity constraints in the ocean freight market in 2016, mean that we have to concentrate even more on improving our yield management, especially when it comes to our ocean freight operating model,” Karlen said. “Yields have continued to remain under pressure in January and February and we expect the first quarter to come in below the previous year. Despite 2017 being a year of great political and macroeconomic uncertainties, we are keeping to our long-term goals and are confident that we can maintain stable costs to position the business for volume growth.”