Global logistics company Panalpina and the NYK Group have agreed to co-operate both in Japan and internationally with the aim of improving efficiency and reducing costs.

According to the agreement, the NYK subsidiary Yusen Air and Sea Service (YAS) will become Panalpina's agent in Japan while Panalpina will represent YAS interests in various countries in addition to its existing network.

A Panalpina statement said the new arrangement will come into effect during the second quarter of 2007 and will provide new opportunities to increase efficiency and reduce costs.

The agency agreement with YAS will allow Panalpina to consolidate all of its service offerings, purchasing and domestic activities in Japan. At the same time, YAS will gain access to Panalpina's extensive network and in-depth market knowledge. Thus, both parties will strengthen networks and procurement capabilities on a global basis.

Under the agreement, Panalpina appoints YAS as its agent for air and ocean freight business in Japan while YAS assigns Panalpina to be its representative in several countries in Latin America, Africa and the Middle East.