The Austrian logistics company, cargo-partner, joined Japanese transport giant, Nippon Express Holdings, 7 months ago. Since then, both companies have been working on synchronizing their business activities. The claim made to CargoForwarder Global by various sources, that there has been an exodus of leading employees since the merger, is vigorously refuted by cargo-partner’s top management.
In this case, Martin Schenzel, Managing Director of cargo-partner Austria. He speaks of a fluctuation rate of between 2.5% and 3% at his company. This is well below the market average, which statistically stands at 7%-8%. “There are always many rumors in the case of mergers, perhaps because competitors want to take advantage of the situation to poach staff by deliberately spreading unproven allegations,” the executive reasons.
Loyal employees
He goes on to say that the working atmosphere could hardly be any better; the company has expanded considerably in recent years, and the merger with Nippon Express opens new market opportunities for cargo-partner. Schenzel, himself, is an example of company loyalty, as he started at cargo-partner after leaving school in 1991, and is still with the company today, with a brief interruption. “In the past few days, we have just said goodbye to a colleague who has been part of the workforce since the company was founded at Vienna Airport in 1983,” he adds as proof of the loyalty of the majority of the company’s staff.
Focus on Africa
In total, cargo-partner currently has around 4,000 employees standing on its payroll. And the increase in personnel is likely to continue, as key markets have been identified together that are to be developed in close coordination with Nippon Express. This applies, for example, to Africa where air freight and maritime activities will become a focal point of interest flanked by the setting up of numerous branch offices. So far, Africa is a white spot in cargo-partners international network. Its ally, Nippon Express runs stations in Kenya and Morocco. In North America, the Canadian market stands high on the duo’s list, as do Brazil and Mexico in Latin America. “We offer potential customers end-to-end package solutions. It depends on the product, the market expertise and the industries, if Nippon experts or our own salesforce take the lead in the negotiations with potential customers,” explains Mr. Schenzel.
Air and ocean are key revenue contributors
Due to the punitive tariffs imposed on China by Washington’s Biden administration, but also the higher taxation demanded by the EU on imported electric cars made in China, supply chains are out of balance and harbors jammed. This is aggravated by the fact that major shipping lines are avoiding the Suez Canal for security reasons and sailing around Africa instead. This significantly extends delivery times on routes between the Far East and Europe, and causes rate hikes.
The air and sea freight business segment contributes between 80% and 85% of cargo-partner’s annual turnover. In contrast, European land transportation and contract logistics play the third and fourth fiddle. “This, we intend to change by pushing these sectors forward,” announces the manager.
Vienna’s role as cargo hub will be fortified
In ocean freight, Nippon Express and cargo-partner transported one million TEU last year, securing them a rank among the ten largest sea freight companies worldwide. In Hong Kong, both companies are in the pole position in air freight exports. Worldwide, they are ranked 6th. At Vienna Airport, where cargo-partner’s ascent began, the agent tops the list in cargo imports. This hub will continue to play a key role for the logistics company in future, the management told CargoForwarder Global. So, what can cargo-partner learn from its majority shareholder Nippon Express? “The discipline, clarity and streamlining with which our partner handles business processes on a global level,” applauds Martin Schenzel. And conversely, what does cargo-partner bring to this marriage as a dowry? “Our market expertise and market dominance in Eastern Europe, where we are represented practically everywhere with offices, warehouses, transport competence and our customer orientation as a strong link. And not to forget, our extremely loyal and experienced staff,” he adds.
