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DHL declines Schenker takeover

Just last week, Kuehne + Nagel made it clear that the agent opted against submitting an offer to purchase DB Schenker. Now the DP-DHL Group has followed suit. CFO Melanie Kreis made it clear in the group’s earnings call that DPDHL had decided against a bid for the takeover of DB Schenker. This means that two potential investors are out of the Schenker running.

As far as the annual results are concerned presented by the DPDHL Group on 06MAR24, they reflect the difficult global economic situation, stated CEO Tobias Meyer.

DHL CEO Tobias Meier and CFO Melanie Kreis explained at the annual conference why DHL is not interested in acquiring Schenker – courtesy: DPDHL

Organic growth
According to CEO Meyer, a review showed that Schenker “would not deliver the value [to the DPDHL Group] we are targeting.” Instead, the logistics giant intends to concentrate on organic growth. “This will remain our focus in the future,” emphasized CFO Melanie Kreis during the onsite press meeting held at the company’s headquarters in Bonn. For accelerating and safeguarding this growth path, the Group has EUR 3.4 billion at its disposal. However, Ms. Kreis, who is known for her conservative M&A strategy, has not ruled out future acquisitions, in particular, companies from the SME sector that should complement DHL’s business or fill existing gaps in the group’s portfolio. The takeover of logistics company J. F. Hillebrand on 23MAR23, for which DPDHL paid EUR 1.5 billion, is an example for further acquisitions. From day one, Hillebrand had specialized in transporting beverages this way closing a gap in the portfolio of the DPDHL Group. This was emphasized by Tim Scharwath, CEO DHL Global Forwarding, Freight who spoke of an important contribution to his division’s ocean freight business thanks to the Hillebrand integration.

Higher net profits expected for 2024 and the years after
With regard to DPDHL’s annual results, Melanie Kreis spoke of a setback compared to 2022, but a significantly higher level of profitability compared to the pre-Covid year 2019. This applies to all divisions, except for the Supply Chain unit that achieved an increase in volumes (+3.2%) and sales (+7.6%). In contrast, e-Commerce, Express, Global Forwarding and the Mail and Parcel business in the German home market suffered double-digit declines.

And these are the 2023 annual figures in a nutshell:
Group revenue reached EUR 81.8 billion, resulting in an EBIT of EUR 6.3 billion, which is significantly above pre-pandemic levels.
DHL Group generated consolidated net profit after non-controlling interests of EUR 3.7 billion in fiscal 2023 vs EUR 5.4 billion y-o-y. Basic earnings per share in the same period amounted to EUR 3.09, compared to EUR 4.41 in the previous year.
In 2024, an operating profit of EUR 6.0 – 6.6 billion is expected and free cash flow of approximately EUR 3.0 billion.
For 2026, the Group forecasts an operating profit of EUR 7.5 – 8.5 billion.

Markets will remain flat during H1, 2024, DHL analysts say
Upon announcement of the annual results, the board members emphasized that the year 2023 was characterized by a weak global economy and, above all, poor global trade. “Even under these adverse conditions, we achieved our targets for the year. Our high profitability allows us to continuously invest in our network, sustainability, digitalization, and our e-commerce capabilities and to further improve quality for our customers. Major uncertainty factors such as volatility in demand and geopolitical crises will remain in 2024. However, we are very well positioned for the opportunities and challenges of 2024,” pronounced CEO Meyer.

DHL Express is content although earnings went south
Despite a decline in revenue of -10% to 24.846 bn euros and an even greater slump in EBIT (-19.8%), Express CEO John Pearson was not dissatisfied with his division’s results. DHL Express is the global market leader in 219 countries, he emphasized. Cargo flights achieved an outstanding punctuality rate of 96% on average.

For 2024, he announced that every stone in the Express network will literally be turned over. This applies to cost management, revenue growth and delivery quality. A central focus is the reduction of greenhouse gas emissions. “We are the only integrator that offers customers the use of sustainable fuels for the air transportation of their shipments. In 2024, we will place an even greater focus on sustainability,” announced the Express Chief.

CB cleared 50 million shipments

CB targets the next 50 million consignments – banner: CB

Customs Broker (CB), a wholly owned subsidiary of Lufthansa Cargo has exceeded the 50 million mark of customs cleared shipments in just three years. Founded in 2006, the full-service provider takes care of imports and exports by air, sea, rail or road at the company’s headquarters in the immediate vicinity of Frankfurt Airport (FRA). CB’s main field of activities is air freight this way driving forward the eCommerce business in Germany and enabling many players to benefit from this sector’s growth. “Just three years ago, we developed our new customs clearance software, which can clear large volumes of shipments in a highly automated process. Exceeding 50 million cleared shipments shows once again that our holistic end-to-end approach with complete solutions for our customers is the right one and that the growing eCommerce business in particular holds further potential for us. The fact that we have already reached this milestone in such a short time is mainly attributable to our customers, who work with us in a trusting relationship, as well as to our employees, whose commitment has made this success possible. We would also like to thank our partners in software development, without whose tireless efforts we would not have been able to achieve this,” explains Uwe Glunz, Managing Director at CB Customs Broker.

Thanks to a newly developed and innovative software solution large quantities of individual and complex shipments can be cleared promptly and cost-effectively, states CB. As a wholly owned subsidiary of Lufthansa Cargo, CB Customs Broker has access to a strong global network and extensive expertise.

CargoTech announces sustainability initiatives

Sustainability is not an objective, but a tangible reality for CargoTech’s member companies: Wiremind, CargoAi, Rotate, and CharterSync reads their joint release. Because all CargoTech members offer tailored products that enhance visibility, process efficiency and awareness of improvement areas, illustrates Cèdric Millet, President of CargoTech. Its members share a common interest in developing smart, tailored solutions for the air cargo industry in close collaboration with its stakeholders and each other, states the joint release.  

Cedric Millet, President of CargoTech – company courtesy

CargoAi’s pioneering Cargo2ZERO CO2 footprint reporting product, launched in September 2022, is one such example, and earned CargoAi a sustainability award at the TIACA conference in Miami later that year. “We are always open to develop and push joint products with other industry peer,” notes Magali Beauregard, Chief Customer Officer at Cargo Ai.

The CargoTech group members unanimously emphasize that sustainability requires investment and change. A CharterSync research paper which examined several carbon offset initiatives, found that the ultimate shipper of the goods may often insist on the cheapest price rather than the most sustainable option. Forwarders, on the other hand, are increasingly including sustainability evaluation metrics in their procurement processes, which will promote a re-evaluation of airline fleets, replacing aging freighters with more fuel-economic modern aircraft and cleaner fuel alternatives. 

The biggest challenge aviation is facing mid-term is to find ways to keep flying. Optimists think that technology (electric aircraft, more sustainable fuel, etc.) will be a big part of the solution, while pessimists hold that it needs to cut parts of what is currently flying. “The answer is possibly a blend of both solutions,” argues Nathanaël de Tarade, CEO Wiremind. His company’s contribution is to ensure that load efficiencies are maximized so that every flight is used to full capacity for a better emission to impact ratio. 

CargoAi also views short-term price thinking without considering its long-term impact as one of the major challenges faced by the air cargo industry and seeks to educate the industry to bring about more sustainable procurement decisions.

Wiremind is aiming to release its SkyPallet 2.0 before the summer. The new software is designed to achieve higher load factors per ULD, resulting in less wasted capacity and more volumes on each flight.  

Sustainability criteria increasingly play a role in business decisions, as Ryan Keyrouse, CEO of Rotate, confirms: “For many years, commercial decisions were driven by contribution or profitability metrics, but these days, sustainability metrics are becoming more and more important. He announces that Rotate will add emissions data to its Live Capacity platform, this year, to ensure that customers have the relevant parameters required to optimize their networks. 

TIACA goes Kazakhstan

The International Air Cargo Association (TIACA) will hold its first event in Central Asia. It is scheduled to take place June 19-21 in Astana, the country’s capital city. The decision follows consultations with the Kazakh Republic’s Ministry of Transport, the Civil Aviation Committee and the Aviation Administration of Kazakhstan (AAK), that will host and co-organize the conference. It is part of TIACA’s focus on regional topics that matter to the air freight industry and connect attendees with new ideas to develop and build upon. The event will be themed Silk Road in the Sky – Kazakhstan Air Cargo Hub.

New region, new city, new experience: TIACA invites the industry to attend its Astana event  –  courtesy: TIACA 

Kazakhstan is a thriving and growing economic influencer between China, India, the Middle East and Europe, possessing large oil reserves as well as minerals and metals. It also has considerable agricultural potential, for both livestock and grain production as well as apples, walnuts, and other crops. 

It aims to attract significant foreign funds as it seeks to develop the non-oil sector of its economy, focusing on the automotive industry, pharmaceuticals, processed metal products, mechanical engineering, as well as light industry, construction, and information and communications. 

 “We are excited to support economic growth and promote a flourishing and expanded logistics industry by working with the AAK to organize a first-class conference, which will bring together over 300 decision makers from the local community and across the globe to network, showcase their expertise and solutions, as well as to learn and debate pressing issues affecting the Central Asian region,”  Steven Polmans, TIACA Chair exclaimed. 

Catalin Radu, Director General of Aviation Administration of Kazakhstan responded with these words: “We are thrilled to have been chosen by TIACA to host their first event in Central Asia. As a strong supporter of international collaboration and exchange, we are honored to welcome the global air cargo community to join us in Astana.” 

Silk Way West partners with Turkish Technic

Both companies announced a 5-year strategic partnership for enhanced Boeing 777F fleet support. This collaboration marks a significant milestone in the airline’s aim to ensuring high operational efficiency and fleet reliability.

Silkway West and Turkish Technic join forces 

Under this new component pool agreement, Silk Way West Airlines will leverage Turkish Technic’s extensive maintenance, repair, and overhaul (MRO) expertise. This partnership guarantees access to a wide range of spare parts and MRO solutions, essential for maintaining the high performance and safety standards of the Azeri carrier’s Boeing 777 freighter fleet.  

Wolfgang Meier, President of Silk Way West Airlines, emphasized the significance of the agreement, stating, “We are delighted to join forces with Turkish Technic to enhance our operational capabilities and uphold our commitment to excellence in air cargo transportation. This collaboration reflects our dedication to providing reliable and efficient services to our customers worldwide.” 

Commenting on the new component pool agreement, Mikail Akbulut, CEO of Turkish Technic, said: ‘‘We are delighted to have taken the first step towards a long-term cooperation with Silk Way West Airlines. With decades of experience in component maintenance and large inventory of components, we are proud to be a leading solution center for Boeing 777 component pooling.  We are excited to work closely with the operator to ensure the highest level of safety and reliability for their Boeing 777F fleet.” 

Founded in 2012 in Baku, Silk Way West Airlines operates hundreds of flights every month across the globe via its fleet of 14 dedicated Boeing 777F, 747-8F, and 747-400F aircraft based at Heydar Aliyev International Airport. On April 28, 2021, Silk Way West Airlines signed a strategic fleet expansion agreement with Boeing for the purchase of five new 777 Freighters, followed by a further agreement signed on November 10, 2022 for the purchase of two state-of-the-art 777-8 Freighters. Silk Way West Airlines also agreed the purchase of two A350 Freighters with Airbus on June 28, 2022. 

Turkish Technic, an association of Turkish Airlines group companies (Istanbul Stock Exchange: THYAO), is one of the world’s leading aviation services providers, offering maintenance, repair, overhaul, modification and reconfiguration services. The company employs 10.500 staff based at Istanbul’s three international airports.

Avianca Cargo wins sustainability award

The Bogota-based freight carrier has won the prestigious ESG Award at a ceremony held in the UAE on 29FEB24. Honored was its continuous and long-standing commitment to sustainability and emission reduction. This includes the opearation of its Airbus A330 freighter fleet, the aircraft with the lowest environmental impact in the Latin American hemisphere.

Avianca Cargo operates a fleet of four A330 freighters, one of which was coloured green, demonstrating the carrier’s environmental commitment – company courtesy

”At Avianca Cargo, sustainability is NOW. That is why we have consolidated a solid sustainability strategy that includes social, environmental, and corporate governance aspects, and today we are proud to receive the ESG Award,” exclaimed Diogo Elias, Avianca Cargo Senior Vice President.

For about ten years, the freight carrier in close coordination with the passenger and ground service units has been implementing fuel saving policies focused on reducing CO2 wherever and whenever possible. In 2023, In combined efforts they managed to offset 75% of greenhouse gases emitted on flights within its domestic Colombian market by the airline’s fleet. In partnership with Ecoventura, Avianca Cargo transported free of charge about 12,000 kg of waste, mainly cardboard, paper, glass, and plastic. The trash was captured on and around the Galapagos Islands and flown to Guayaquil. There, they were recycled, transformed into new products or objects. This kicked off a circular economy leading to some remarkable results. Further, Avianca Cargo has adapted its warehouses and infrastructure with new refrigeration technologies to reduce emissions.

From a social perspective, Avianca Cargo signed an alliance with the Fundación Best Buddies Colombia to support the labor inclusion of people with intellectual disabilities, and the first cargo agent joins the team as part of the Amigos del Alma program. On the other hand, the company reaffirmed its alliance with Airlink, which has allowed it to mobilize hundreds of kilograms of humanitarian cargo to different countries such as Ecuador and the Dominican Republic, benefiting about 6,000 people.

In 2023, the cargo carrier launched an internal sustainability contest called CargoLab Sostenible for its employees to compete by presenting innovative ideas to a panel of judges that contribute to reduce harmful environmental impacts. Four of these ideas were already prioritized for implementation by 2024.

Etihad Cargo and WFS ink strategic partnership

The Abu Dhabi-headquartered carrier and Worldwide Flight Services (WFS), a member of the SATS Group, have signed a strategic partnership agreement for cargo handling services covering 12 airports in Europe, Scandinavia, North America, India, and Asia Pacific. The agreement has a term of 3 years and will see WFS handling over 150,000 tons of cargo annually for the Gulf carrier. Strategically located at the crossroads of major global trade lanes, Etihad Cargo offers the market capacity on passenger and freighter aircraft as well as an extensive trucking network. In addition to standard air freight, Etihad Cargo flies a wide range of specialty products including live animals, DG, valuables and vulnerable cargoes, personal effects, as well as cold chain products for pharmaceuticals and perishables cargoes. 

Etihad Cargo offers customers a broad international network – courtesy EY Cargo

Thomas Schürmann, Head of Cargo Operations & Delivery at Etihad Cargo, said, “Etihad Cargo’s long-standing partnership with WFS and the addition of new stations are a direct reflection of a shared commitment to consistently delivering high-quality air cargo solutions globally. The combination of Etihad Cargo’s expertise in transporting general and specialized cargo and the capabilities of WFS give partners and customers the confidence that their air cargo needs are in the best hands, regardless of where they are in the world.” 

Mohammed Esa, Global Head, Gateway Services Key Accounts & Strategy, SATS Group responded to this by stating: “This new agreement adds more key airport stations to the important work we do for the airline, including Amsterdam, Bengaluru, Barcelona, Boston, Copenhagen, and Chicago. We value Etihad Cargo’s partnership approach and their confidence in our ability to consistently deliver the high levels of service the airline’s award-winning reputation is founded on. Being awarded responsibility for providing cargo handling services at so many major cargo airports highlights WFS’s ability to provide global network solutions to our strategic customers.”

DHL expands in Poland

On 01MAR24, the DHL Group inaugurated a large logistics center in Robakowo, near Poznan, located halfway between Berlin and Warsaw. The parcel sorting facility, a joint project of DHL eCommerce, Post & Parcel Germany, and DHL Freight, is designed to deliver enhanced service quality and faster lead times to customers. With an investment of around 180 million euros, the new facility spans an area of 32,000 sqm, equivalent to the size of five soccer fields. It features 3,000 meters of conveyor belts and a sorting capacity of 45,000 parcels per hour and provides employment for around 500 staff. In addition, DHL Freight operates a terminal dedicated to processing palletized shipments and less-than-container-load cargo for its Polish and European customers.

Happy faces at DHL in Poznan (l > r) Agnieszka Swierszcz, CEO DHL eCommerce Poland, Uwe Brinks, CEO DHL Freight, Tobias Meyer, CEO DHL Group, Pablo Ciano, CEO DHL eCommerce, Nikola Hagleitner, CEO Post & Parcel Germany

The new Poznan hub will have direct linehaul connections to all DHL parcel hubs in Germany, Poland, and many other European countries, ensuring seamless connectivity. The collaboration between DHL eCommerce and Post & Parcel Germany unlocks the potential to handle a combined volume of 1 million parcels daily during peak times.

The new logistics center was constructed in alignment with DHL’s sustainability strategy, emphasizing a commitment to reduce its ecological footprint. It has a photovoltaic system that provides one-third of the facility’s energy needs. The remainder is supplied by purchased green power, minimizing the use of fossil energy. The facility uses a variety of environmentally friendly transportation solutions. Electric trucks move trailers and containers, eliminating exhaust and engine noise. The center also has 40 charging stations for electric cars, vans and trucks. An automated traffic management system monitoring processes at entrances and exits reduces vehicle waiting times and minimizes noise and emissions.

In recent times, Poland has emerged as a pivotal gateway for e-commerce in Europe, with major brands and e-tailers setting up shops within the country. The domestic parcel market, driven by the relentless surge in online sales, has also experienced extraordinary growth – nearly 120% over the past five years.

Saudia Cargo, Cainiao and WFS collaborate in Liège

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On 01MAR, the partnership between Saudia, Cainiao and WFS at Liège Airport officially took off. This intent was already announced months ago, becoming reality now. At an event held at Liège Airport on 01MAR24, the parties involved confirmed earlier plans to roll out their tripartite model at other WFS ground handling stations, jointly served by Saudia Cargo and Cainiao.

Image (left > right): Mohammed Esa, Senior VP Strategy & Business Development WFS, Eric Yu, Vice-President Cainiao Group, Teddy Zebitz, CEO Saudia Cargo – photos: CFG/ms

Initially, this was announced in NOV23 with CargoForwarder Global covering the topic: Saudia Cargo, Cainiao, and WFS drive e-Commerce. The cooperation works according to this pattern: Saudia Cargo flies the consignments to Riydh. There, the Boing 747 land for a short tank stop and continue their journey with new flight number to Liège. Upon arrival, WFS takes care of the unloading, sorting and onforwarding tasks. Currently, the number of weekly Saudia flights to Liège is not clear as this depends on the seasonal demand/supply, the Arabian carrier told CargoForwarder Global.                                      

Liège and more
We need to organize this industry, which is long overdue,” said Teddy Zebitz, CEO of Saudia Cargo at the Liège event. “We need tracking & tracing all over the trip and that is only possible with partners sharing the same ambition. We mustn’t forget that air cargo has only a limited share of the global volume of goods, but also accounts for 30% in terms of value.”

He added to this that the Liège model may be duplicated at other stations across the globe served by Saudia Cargo in partnership with Cainiao.  

Data sharing
At the Liège event, Thomas Yu, Senior Director, Global Hub Operations and Product Development of Cainiao, stated that the principles driving the partnership are not based on rocket science. “It is about data collecting and sharing. We have introduced lightweight PDA’s (Personal Digital Assistant), of which we have been engineering the design to make them easy to use.”

“The data flow is fully transparent. The world needs data, to share and to connect. Data are not owned by you, just processed by you. That is also why we try to reduce human intervention. Human error is not avoidable. Together with Saudia and WFS we opted for the type of automation to make the work easier for the people involved.”

Not copying the integrator model
Mohammed Esa, Senior Vice-President Strategy & Business Development of WFS believes that the tripartite partnership is a new way to look at things and manage e-commerce flows efficiently from A to Z. “At the end of the day, the part of the handler is just as important as the rest of the chain. We too intend to enhance the efficiency of our product, so we want to do more, and we are looking for ways to pursue this in our daily business to the benefit of our clients.”

Thomas Yu, Senior Director, Global Hub Operations and Product Development of Cainiao.

CFG: Bringing together logistics, airline and handler is something like mirroring what the integrators have been doing for decades. Or not, Mr. Yu?

Thomas Yu:We are not trying to imitate the integrators. In e-commerce you need an allocation of duties and seamless collaboration. I think the three of us are offering another option than the integrators. Collaboration is about a lot more than giving a bill for services performed. The most important part is pursuing the same goals.”

To which Mr. Zebitz adds: “This is about mindset and not about copying. It is about what the customer wants.”

Forwarder lacking
Lacking in the set-up is a participating forwarder, Mr. Yu points out: “The traditional forwarder can play a part, but their role in collaboration also needs to change, especially in data sharing. Eventually the forwarder could become a virtual airline for us.”

Forwarders create a lot of value, manager Zebitz adds. But this is about transparency. The key question from a consignee’s aspect is:” When can I have my goods?”

The LGG project is not a one-size-fits-all solution, Mr. Yu emphasizes. “For most of its volumes LGG is an inbound destination, in contrast to Hong Kong where the shipments are loaded on board an aircraft bound for Europe, for instance. When expanding this collaboration by offering this partnership constellation at other airports, we need to take a close look at the hubs, their procedures, ground infrastructure and the kind of products they mostly handle. There has to be a coherence.

The three parties are convinced that, in their joint project, they are processing data setting milestones such as for departure time, arrival time, and for updating the cargo systems. “This way, data becomes transparent all along the supply chain, benefitting our customers,” illustrates Mr. Yu.

Mr. Zebitz thinks that API’s (Application Programming Interface) are the future for the development of common communication platforms for the industry.

Pharma
In Saudia’s dedicated part of the Cainiao operated large warehouse at Liège Airport, WFS has invested in a cooling facility. That may be interesting for Saudia’s pharma business, says Teddy Zebitz. “Pharma has become a big issue for us over the past few years.”

Saudia Cargo was given its IATA CEIV Pharma certification in OCT23. And on 23FEB24, the carrier also secured the Air Cargo Marketing award from STAT Times magazine. The award was handed over at Air Cargo India. It honors exceptional accomplishments and innovative strategies within the air cargo marketing domain.

Arabian investor buys into MNG

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Ghitha Aeroinvest Holding has acquired 44% of the shares of the private Turkish cargo carrier MNG Airlines for USD 211.2 million. The deal is signed and sealed, confirmed the investor’s parent company, Abu Dhabi-based Ghitha Holding PJSC. The acquisition, widely ignored by media and the aviation industry, applies retroactively from 01FEB24.

M&A experts point out that two key reasons may have prompted investor Ghitha to buy a large stake in MNG: one is based on financial, the other on strategic considerations. Abu Dhabi-headquartered Ghitha Aeroinvest does not provide backgrounds of its move.

Significant milestone
However, local experts estimate that financial considerations are the main driver of the deal. MNG is well established in the market, growth driven and a solidly managed private cargo airline. Founded in FEB96 by Mehmet Nazif Günal, MNG Havayollari ve Tasimacilik A.S. is profitable, ending fiscal 2022 with a surplus of USD 67 million, which represents a y-o-y growth of 32%. It operates its main hub in Istanbul, has a fleet of 11 freighters with an average age of 23+ years and serves a global network spanning 41 countries. In addition to scheduled flights, it offers charter services to interested parties. Main items transported are perishable products, dangerous goods and a broad variety of standard shipment.

On the occasion of the signing ceremony, Gokay Ozdemir, Vice Chairman of the Board stated, “MNG Airlines is committed to further enhancing the global aviation landscape, and this partnership [with Ghitha] marks a significant milestone on our journey. We look forward to a fruitful collaboration and endless skies ahead.”

Strategic considerations
That will commence slightly above zero level because the US$211.2 million filling MNG’s coffers do not suffice to roll over the aging fleet. However, the funds should form the basis for leasing modern, fuel-efficient freighters. In his speech following the signing of the contract, Falal Ameen, Group Chief Executive Officer of Ghitha Holding, highlighted another important aspect – the investor’s strategic motive: “The integration of MNG Airlines into our portfolio is a significant step on our way to becoming a regional powerhouse in the food trade. This partnership not only expands our logistical capabilities, but also strengthens our commitment to providing our customers with the highest quality products sourced from around the world. We are proud to utilize MNG’s expertise in freight and logistics to further enhance our service offering and evolve in line with our customers’ needs and preferences.”

Freighter fleet needs to be revamped
However, embarking on the “endless skies ahead” mentioned by the executive can only be achieved if the carrier modernizes and expands its fleet. This is an urgent must since progressively rising CO2 taxes tend to jeopardize MNG’s profits. This aspect was indirectly confirmed by Murathan Günal, Chairman of the Board of MNG Airlines, when signing the deal with Ghitha Aeroinvest Holding. “We are delighted to join forces with Ghitha Holding PJSC, […] This collaboration opens up new horizons for us in terms of operational capabilities and geographical reach. Together with Ghitha Holding, we look forward to setting new benchmarks in the cargo and logistics sector and to a future of mutual success.”

It’s MNG’s choice: Either modernizing the fleet or paying rising fees for CO2 emissions – photo: company courtesy.

The share of perishables will go up
Food trading is one of the investor’s hallmarks. This was confirmed by company representatives following the announcement of the MNG deal. “Ghitha Holding, with a portfolio that spans across food, agriculture, fish, dairy, poultry, vegetable oil, retail, distribution and catering services, views this acquisition as a strategic move to expand its capabilities and reach in the global supply chain.”

Two consequences are becoming apparent: firstly, MNG is likely to be heavily integrated into the Ghitha Group’s supply chain. Market observers point out a second aspect: The share of food products flown by MNG will increase significantly.