This year’s Frankfurt-held conference of air freight agents (organized by the forwarding association, DSLV), focused on the challenges the industry is facing and how shortcomings can be overcome. The result was a very mixed picture drawn by the 75 attendees. Fraport’s intentions to build a new Logistics Center West, was highly praised at the meeting. The project, which is part of the operator’s Masterplan 2030, should give the industry a new boost.
The delegates first had to let off steam. So, they named the deficits that they struggle with on a daily basis and that need to be overcome. That aviation in Germany is taxed way too high compared to other EU countries, was a key topic high on the DSLV agenda. To avoid skyrocketing expenditures, freight carriers turn their backs on Germany and land in Belgium, France or the Netherlands, instead. The often-repeated message was that the cost avalanche scares airlines off. An alarming tendency, summarized Timo Stroh, Chairman of the air freight forwarders represented in the association of German air freight and logistics agents (DSLV). “The price shock leads to a gradual loss of our competitiveness,” he warned. Addressing policymakers directly, he demanded to do away with inefficient and costly bureaucratic procedures and advocated for an EU-wide level playing field in air freight security and charges.
Promising projects
In contrast, one positive signal was the intended construction of a Logistics City West, documented in Fraport’s Cargo Masterplan 2030 and presented by Pierre Dominique Prümm, Fraport’s member of the Executive Board.
But what exactly do the freight agents expect from the infrastructural measure? CargoForwarder Global (CFG) asked Timo Stroh (TS) on the sidelines of the meeting. Here is what he said:
TS: Our members expect clear benefits resulting from both programs. The planned investments in digitalization and space development are essential for increasing the efficiency of processes, reducing idle times and enhancing the competitiveness of Frankfurt Main Airport (FRA) in cargo altogether. In particular, the creation of additional space for ground handling agents with direct apron access and the prospect of a trimodal hub from 2030 onwards, demonstrate that Frankfurt is on the right track to master future challenges in air cargo. Basically, the freight forwarders support the masterplan presented by the operator and welcome the initiative of building the Logistics City West, reducing operational constraints and time losses.
CFG: However, DSLV delegates also complained about the constant head wind the industry is facing.
TS: And they are right. To name the gravest obstacles in short: Excessive bureaucracy, unequal competitive conditions within the EU, and the high-cost level at German airports. To remedy them, freight forwarders expect greater support from politicians and authorities. Long-term growth and innovation can only be secured through positive framework conditions, including a reduction in taxes and levies.
CFG: When listening to the agents’ complaints, one gets the impression that the bureaucracy has a life of its own and is unfamiliar with the day-to-day running of the business. True or false?
TS: The fact is that the extremely restrictive German security practice in air freight compared to schemes in the Netherlands, Belgium or France, places a heavy burden on the freight companies involved. This policy practiced by the regulator, LBA, generates additional costs and delays processes but does not lead to a higher level in air freight security. This said, we urge the authorities to step up efforts to harmonize procedures and digitalize processes while maintaining the highest security standards. In addition, regular dialog with industry is important to ensure that new measures are practicable and do not place an excessive burden on the shoulders of the companies affected.
Air freight faces a technical revolution
Technological innovations will shape air freight in the coming years, was another topic listed on the DSLV agenda. Solutions developed today to improve processes tomorrow, were shown by Harald Sieke (Fraunhofer), Philip Rauchhaus and Jasmin Kaiser (Lufthansa Cargo) in their presentations. In particular, generative AI, robotics and automation were mentioned. Combined, they can increase the efficiency of air freight and, at the same time, provide answers to demographic developments. These technologies will not only help to alleviate shortages of skilled workers, but also ensure competitiveness through intelligent, scalable solutions. Chairman Timo Stroh concluded: “Despite political and economic uncertainties, we remain optimistic. Air freight connects us, overcomes challenges and opens doors for sustainable growth across borders. But aviation in Germany needs more thrust to climb again.”
