Discounter Lidl grows its maritime fleet

However, Lidl’s vessels do not operate under its own brand but are listed on Tailwind Shipping Lines’ register. Founder and owner of both Lidl and Tailwind, is billionaire Dieter Schwarz. Now, the box liner’s first container ship, the ‘Panda 001’, is switching to the German flag, with Heilbronn becoming its home port. This reflagging is planned for the entire fleet.

One discounter, three shipping lines and a rail link – photos: courtesy of Schwarz Group

Even maritime experts have to read the name twice to believe it: Heilbronn – a city in southwestern Germany with a population of 131,000, whose most famous son was Wilhelm Maybach, the automotive pioneer. It is located 553 km from Rotterdam, on the North Sea coast, and a full 626 km from Hamburg. Now it has officially become home to the fast-expanding Tailwind Shipping Lines. Not surprising since Lidl is based in Bad Wimpfen, just a stone’s throw away from Heilbronn. This explains why Heilbronn was chosen as Tailwind’s headquarters, despite being located deep inland, away from traditional shipping routes.

Avoiding supply chain disruptions
Yet, the shipping company’s headquarters is of secondary importance. What matters more is the business objective to utilize the Tailwind fleet to ensure supply security and on-time delivery for the retailer’s 12,600+ supermarkets.

Lidl management cites supply chain disruptions during the COVID-19 pandemic as the reason for the step into maritime logistics. Currently, Tailwind’s fleet consists of nine box ships and 33,000 containers in service, with five additional vessels on order.

Last week, the German flag flew for the first time at the stern of a Tailwind vessel, in this case, the ‘Panda 001’. This change is planned to be implemented gradually for the entire fleet. “In times of geopolitical tensions and fragile global supply chains, the choice of the German flag is a sign of responsibility, cooperation, and strategic agility. Every additional ship flying the German flag strengthens our security of supply,” said Transport Minister, Patrick Schnieder, on the occasion.

Although it isn’t visible in the photo, Lidl’s Panda 001 has recently started sailing under the German flag as will all Tailwind vessels be doing in future. 

Joining the top 30 club
Including the capacity of the five newbuilds, Tailwind’s total capacity reaches 80,000 TEU. This propels the newcomer into the ranks of the world’s 30 largest shipping companies. It enables Lidl to manage everything from a single source and control the supply chain from beginning to end. 

Three maritime routes
The first is an intra-Asian service connecting Vietnam, Malaysia, Bangladesh, and Sri Lanka. Secondly, Tailwind operates from Qingdao via Barcelona to Koper. From there, the imported goods are transported by rail to the discounter’s Austrian distribution center in Graz and then by truck to Lidl’s supermarkets in Central and Eastern Europe. Third in line, is a maritime feeder service that has been established between Barcelona and Moerdijk in the Netherlands. 

Originally initiated to transport non-food goods produced in Asia for Lidl, the service portfolio has continuously evolved. Today, customers who are not part of the Schwarz-owned Lidl cosmos, can also book their shipments on Tailwind vessels.

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