Europe’s largest discounter, Lidl, which operates around 12,000 supermarkets in Europe, is building its own fleet of cargo vessels. The decision is a reaction to the coronavirus pandemic causing the collapse of key global supply chains and container price fluctuations, followed by ongoing multiple, overlapping crises. The critical situation is exacerbated by the uncertainties of future economic and political developments.
Lidl’s operational motto is Everything from a Single Source – from sourcing the products in the country of origin to selling them in the discounter’s own European supermarkets. This approach is a reaction to the recent global turbulences prompting management to redefine the wholesaler’s business processes. In the past, the discounter used to work with shipping companies to transport many goods by sea, however, this phase came to an end in 2022. In that year, Lidl incepted the shipping company, Tailwind Shipping Lines, and registered the brand at the European Trademark Office.
Building its own maritime assets
The maritime newcomer is based in Hamburg. During the past three years, the wholesaler chartered ships with a capacity of between 3,800 and 5,500 TEU. It has now embarked on the second phase of its strategy: building its own assets. Consequently, Lidl awarded a contract to the Chinese shipyard Guangzhou Shipyard International, to build five box ships with a transport capacity of 8,400 standard TEU each. Industry experts estimate the total value of the order to be something between 530 million and 600 million euros. Lidl owner, Schwarz Group, does not provide any information on financial figures.
New routing
Since 17JUN25, the chartered vessels no longer sail from China via Bangladesh to Europe, but serve the hub Port Kelang, in Malaysia, from where they sail to Koper in Slovenia, and Barcelona on the Spanish east coast of the Mediterranean Sea, ending their maritime journey in Rotterdam. The ordered Chinese vessels are powered by LNG dual-fuel propulsion, which significantly reduces the environmental impact of emissions compared to Lidl’s current fleet.
Competitors are invited to use Tailwind capacity
In order to operate the vessels profitably, Tailwind also offers its capacity to competitors, as its own shipment volume is not sufficient to cover the costs. Hence, in addition to its own imports, a Lidl-owned vessel could also be carrying shipments from its competitors, Aldi, Carrefour, Tesco or Sainsbury’s. However, 50% of the cargo capacity offered by a Tailwind box ship is reserved for Lidl’s own consignments.
So far, the move of the wholesaler to manage maritime transports by itself, has paid off. Meanwhile, Tailwind Shipping has taken second position in the ranking of shipping companies registered in Germany, surpassed only by local giant, Hapag-Lloyd. Another positive aspect is that the fleet has achieved an average punctuality rate of 85%, according to available data. This is a very high figure in the maritime industry.
