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Amazon plans EUR 10 billion Germany investment

Brigitte Gledhill
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Amazon plans EUR 10 billion Germany investment

A promise of a further EUR 10 billion in investments in Amazon Web Services’ logistics network and cloud infrastructure across Germany, along with the creation of 4,000 new jobs – those were Amazon’s messages very much welcomed by Germany’s Chancellor, Olaf Scholz, against the backdrop of the country’s economic downturn. A third new fulfilment center is due to open in Horn-Bad Meinberg (North Rhine-Westphalia) later this summer, adding to the recent MAY24 addition in Erfurt (Thuringia), and the one in Großenkneten, which opened in AUG23. By the end of 2024, Amazon will count over 40,000 permanent employees in Germany, across more than 100 German locations, and will have invested more than EUR 77 billion in the country since 2010.

Helping the German economy with jobs and innovation. Source: Government

Rocco Bräuniger, Amazon Germany Country Manager, said: “With our teams continually focused on innovation, we’re helping German customers transform the way they work, live, connect and thrive. Our teams work hand-in-hand with state-of-the-art technologies to deliver for small businesses and customers, while AWS enables organizations of all sizes in Germany to grow their businesses and innovate using the cloud. And with that comes a positive impact for the country – and especially the communities where we operate – with a broad range of investments and jobs ranging from research and development to logistics and customer service.”

Stefan Hoechbauer, Managing Director for Germany and Europe at AWS, said: “Germany is at the heart of innovation across Europe. AWS is more committed than ever to helping German customers lead and build new technologies and services using the wide variety of capabilities in the AWS Cloud, including generative AI. To address the growing demand for our services, we’re investing heavily in Germany’s digital infrastructure. This also includes our commitment to support digital skills and talent development programs across Germany and to partner with local communities on joint initiatives with a lasting impact.”

In other news, last week, Amazon also increased its agreement with Sun Country Airlines, opting for eight more B737-800 freighters from next year on. A total of 20 freighters will now fly on behalf of Amazon at least until 2030. The agreement includes a possible further extension to 2037. Jude Bricker, CEO of Sun Country, commented: “Amazon is an extremely important customer to Sun Country and strong execution on our current cargo services positioned us well to grow our business. We look forward to continuing to provide services to Amazon into the 2030s.”

Etihad Cargo and Kuehne+Nagel create direct digital connection

Brigitte Gledhill
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Etihad Cargo and Kuehne+Nagel create direct digital connection

Etihad Cargo is the latest airline to set up a direct ebooking connection with Kuehne+Nagel, known for its digital innovation. In digitally linking the two companies, Kuehne+Nagel’s reservation team gains seamless access to Etihad Cargo’s real-time capacity across Etihad Cargo’s global network, and thus benefits from greater transparency, efficiency, and flexibility when it comes to booking shipments. The integration provides immediate information on the airline’s dynamic pricing offers via Etihad Cargo’s Instant Offer Rate (IOR) tool, thus enabling swift and accurate booking decisions. For Etihad Cargo, the direct eBooking integration with the global logistics provider, is another feather in its digital sales channels portfolio, which already includes the leading third-party booking marketplaces, cargo.one, WebCargo, CargoWise, and CargoAI. The airline plans to add more direct integrations with other forwarders, in future, as it continues to implement its digitalization strategy.

Now linked directly with Kuehne+Nagel’s booking system. Image: Etihad Cargo

Stanislas Brun, Vice President Cargo at Etihad Cargo, commented: “Etihad Cargo’s integration with Kuehne+Nagel represents another milestone in the carrier’s commitment to digital innovation and operational excellence. By providing Kuehne+Nagel with direct access to Etihad Cargo’s network’s real-time data, this integration enhanced their ability to make informed booking decisions, streamline operations, and ultimately deliver superior service to their customers. Etihad Cargo will continue to prioritize the carrier’s digital connectivity and development, ensuring technological advancements keep pace with industry demands and further elevate service standards.”

Holger Ketz, Global Head of Air Logistics Network and Carrier Management at Kuehne+Nagel, said: “By launching direct ebooking with Etihad Cargo, Kuehne+Nagel can offer its customers real time access to capacity and pricing. This will create greater operational efficiencies and optimize our customers’ experience.”

Maastricht Airport opens the door to Electrifly

Brigitte Gledhill
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Maastricht Airport opens the door to Electrifly

OK, so it’s not strictly air cargo (and there’s no reason it cannot morph into that area), but the news is too ‘electriflying’ to pass up on, as it offers a tiny, positive step towards greener flight within Europe. Talk is of Europe’s first international electric flights. ‘International’ in this case means flights between the Netherlands, Belgium, and Germany. The Netherlands’ Maastricht Aachen Airport (MST) is the pioneer, hosting the first publicly accessible electric powered flights, following the creation of a joint venture initiative between the airports in Maastricht, Liège, and Aachen. Leading European center for Aerospace and Engineering alongside, FH Aachen, together with business aviation operator, ASL Group (ASL – also providing ground handling services and a flight school), and electric road vehicles manufacturer, NIO, are collaborating on the Electrifly project.

A tiny, yet electrifying step into the future. Image: Menzies

Electrifly offers open-to-public electric flights through a pilot scheme between the three airports, on a first-come, first-served booking basis between 01JUL24 and 31AUG24. The electric flight option in a two-seater Pipistrel aircraft includes the possibility of an electric door-to-door taxi service provided by NIO within a 15 km radius of the respective airports, so that passengers can travel green both on the ground and in the air. “All flights offered are based on the EASA cost-sharing principle, with the cost shared between the pilot and passengers,” the release points out.

Jonas van Stekelenburg, Chief Executive Officer (CEO), MST, stated: “The Electrifly project is a glimpse into the future of aviation and an open invitation to all kind of parties who want to develop the future of eAviation to do so at Maastricht Aachen Airport. It is a huge step forward in MST’s mission to facilitate zero-emission flights available for the public, opening the door to sustainable air links between regional airports and partnerships with mobility and aviation partners who strive for the same goals regarding zero-emission transportation. Anyone pursuing this goal is welcome at our airport, this innovative partnership is a spectacular achievement for Euregio and underlines our belief that MST is the perfect location and facility for testing and developing eAviation. I would like to applaud the tireless, dedicated, and professional contribution that FH, ASL and NIO have made toward this project, and we hope to work on similar projects in the future with FH, ASL, NIO and other parties who can accelerate the development of eAviation.”

Ruben Keuter, General Manager, NIO, Netherlands, said: “NIO is proud to be able to provide the emission free limousine service from door to airport and airport to destination in this amazing project. Electrifly and NIO share the same goal – to provide a cleaner future for next generations – and both are groundbreaking in bringing new technologies to the market; the future is here!”

Once again, Menzies Aviation’s net zero targets approved

Brigitte Gledhill
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Once again, Menzies Aviation’s net zero targets approved

As in JUN23, the Science Based Targets initiative (SBTi) has, this month, once again approved Menzies Aviation’s net zero targets in its drive to achieve net-zero greenhouse gas emissions by 2045. Following the measures initially outlined in its 2021 All-In plan, Menzies Aviation was able to report that significant investments in electric and lower emission Ground Support Equipment (GSE) had now brought it to a level of 17% of all global GSE equipment being powered by electric batteries (even increasing to 42% in Europe) – in line with its target of 25% by 2025. The difference to last year’s PR are more detailed percentage targets such as a 50% near-term reduction in scope 1 and 2 GHG emissions by 2030 from its 2022 baseline, and scope 3 GHG emissions to reduce by between 30% and 42% during that time.

Heading towards 25% of all GSE being electric. Image: Menzies

Menzies’ All-In sustainability plan includes set goals across four key pillars: Environment, People, Safety, and Ethics. Motivated by the need to improve business operations in view of climate change and global warming, the company is looking to bring about positive change across all its chosen ESG priorities. Thus far, it has invested in solar panels, smart building technologies and circular cargo packaging solutions. It is also involved in the Climate Impact Partner’s Million Mangroves project to support the removal of carbon from the atmosphere and the restoration of ecosystems.

John Geddes, Chief Governance & Sustainability Officer & Company Secretary, declared: “We are thrilled to announce that our 2045 net zero targets have been approved by the SBTi, making us the first major aviation services provider to achieve this important validation. Decarbonization is an imperative for a sustainable aviation future – one we are committed to achieving with our net-zero targets, but there are many other facets to our All-In plan that will deliver value for our business and stakeholders and support our growth in a sustainable way well into the future.”

Katy Reid, Head of Sustainability and Corporate Responsibility, added: “Our commitment to progress against our goals and targets has never been more important. By taking bold steps to reduce the impact our business has on climate change and the natural environment, while mitigating the risks our business faces because of climate change, we believe we will play our part in delivering a sustainable, net zero future for Menzies, and for aviation.”

Central German Airport Holding crises worsens

Heiner Siegmund
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Central German Airport Holding crises worsens

The operating company of Leipzig/Halle and Dresden Airports urgently needs money – lots of it. If the public owners, the federal states of Saxony and Saxony-Anhalt, do not provide new funds, the parent company could face insolvency. This is stated in a letter from the Saxon Ministry of Finance. There is talk of 100 million euros of taxpayer’s money that the two federal states would have to inject for closing the holding company’s financial gap. Now they are squabbling over the amount each of them has to pay. 

What went wrong in the recent past with the East German airports run by the umbrella organization Mitteldeutsche Flughafen AG, the parent of Leipzig-Halle and Dresden Airport? Aviation experts throughout Germany wonder about the deficits accumulated by the managers responsible. This is all the more so as DHL Express operates its largest global hub at LEJ and feeds the airport with plenty of freighter ops as do its partners or affiliates like cargo airline AeroLogic, a DHL – Lufthansa Cargo JV (50/50%). Hence, freight traffic is running smoothly at LEJ, so it seems when looking from beyond the fence. But there were setbacks in recent times. Predominantly Amazon’s decision in late 2023 to close its LEJ hub for Prime Air ops that was set up only three years ago. A large and promising customer was gone, so were 400 jobs.

Handling agent PortGround is still part of the East German Airport holding but is to be sold. Courtesy: Mitteldeutsche Flughafen AG / PortGround GmbH

The 100-million-euro injection
In fiscal 2022, the Holding presented losses of 39.6 million euros, following a yearlong series of annual deficits. According to a KPMG survey, the gap in liquidity has reached 145 million euros and without new funds, the Holding is in danger of biting the dust.
Alarmed by this gloomy outlook, the stakeholders Saxony and Sachsen- Anhalt have decided to inject 100 million euros to stabilize the holding’s finances. In addition, management will kick off a restructuring program that includes cost cutting measures for convincing banks to grant new loans.

Dispute over funding
Saxony is the majority owner (77.29%) in the Mitteldeutsche Flughafen AG, while the neighboring state of Saxony-Anhalt holds 18.54%. The remainder is split between the cities of Leipzig (2.1%), Dresden (1.87%) and Halle (0.2%). According to the 100 million euro restructuring package, Saxony would have to shoulder 81.3 million and Saxony-Anhalt 33.4 million. Now there are reports from Saxony-Anhalt that the federal state does not want to contribute this share. Its state government questions to spend taxpayers’ money to Holding subsidiary, Dresden Airport, which is geographically closer to the Czech Republic than to Saxony-Anhalt’s capital city Magdeburg. “What benefits does distant Dresden Airport actually offer our own citizens?” voice the federal state’s policymakers with increased intensity. This controversy is currently hotly debated between both states with each of them governed by the conservative Christian Democratic Party.

PortGround for sale
According to latest plans tabled by the Holding management, its ground handling arm, PortGround (472 employees) shall be sold. In contrast to its parent, the handling agent is profitable for over a decade. Local media refer to Frankfurt-based CHI Aviation Handling GmbH as potential buyer. Since PortGround’s managing director, Alexander König questioned the divestment plans, suggesting partnership models instead, he was dismissed, with Holding CEO Götz Ahmelmann taking over the position in addition to his role as Holding boss. Critics complain that the supervisory board has not intervened so far. “We are facing a major crisis, but no watchdog is taking on a steering function,” one voice told CargoForwarder Global. This raises the question of the responsibility of the controlling bodies.  In this context, the fate of Andreas Schafhirt (62) remains unclear. The expert was supposed to develop a restructuring concept for the Airport Holding company. After familiarizing himself with the subject, he did not return to his job at LEJ. Since APR24, there is no trace of him. The police units involved in the case refuse to provide any information to the media.

time:matters expands in Shanghai

Heiner Siegmund
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time:matters expands in Shanghai

On 25JUN24, the specialists in organizing and operating ultra urgent shipments will inaugurate a courier terminal at Shanghai Pudong Airport. This will enable  in and outgoing courier and express air freight consignments to be handled with the utmost speed. The direct apron access of the tmCT facility, as it is called, means that the length of the entire process can be cut by two thirds, says Constance Wu, Managing Director of time:matters (Shanghai) International Freight Forwarding Ltd. In this specialty segment, this is a quantum leap in time.

Shanghai was chosen as the location for the courier terminal for two basic reasons. Firstly, time:matters has been active there with an own station for 5 years. Hence, it knows the local business and regulatory conditions extremely well. Secondly, the Chinese and East Asian market is becoming increasingly important for the subsidiary of Lufthansa Cargo. Local customers are served from there, whether through consulting activities, support in shipment bookings, the preparation of air waybills or local invoicing activities. “Our global customers, in particular, benefit from the Shanghai entity. Our network connects important Chinese marketplaces with the major economic centers in Europe and the USA,” says time:matters spokesperson, Katja Sonday.

time:matters is increasingly enlarging its service portfolio, as shown by a new courier terminal which opened at Shanghai Pudong – photo: company courtesy.  

time:matters asks for patience
When asked whether further comparable terminals are planned in China or the Far East in general, she replied: “We are looking at various options as part of our growth strategy. However, it would be too early to name specific projects or timelines at this stage. We ask for your patience.”
The tmCT has been designed to optimize both the monitoring and the handling speed for time-critical and sensitive goods. In doing so, time:matters is building on its many years of expertise gained at the Courier Terminals in Frankfurt and Munich, for example, since 2004 and 2019, respectively. “For time-critical, sensitive and high-value goods, speed and security are essential and the new terminal in Shanghai will “significantly improve” handling of imports and exports,” stated Constance Wu, managing director of time:matters in Shanghai.
Business areas for the subsidiary of LH Cargo include automotive, aviation and aerospace, high-tech and semiconductors plus medical technology.

New service: active monitoring of shipments
For the first time at the tmCT in Shanghai, time:matters offers the possibility to physically monitor shipments on the apron until loading or departure, using direct apron access. This guarantees maximum control over all shipments as well as a customized service, high reliability combined with the utmost flexibility for its customers. A hub monitoring system also enables real-time monitoring and informs the business partners proactively in the event of irregularities. A designated dock for receiving shipments, an X-ray system, and a dedicated counter for export and import documents further improve the quality of service, a press release emphasizes.

Sharply reduced handling times
To enhance the flexibility and speed of shipments and ensure optimal delivery and onward transportation, time:matters relies on fast truck access, its own delivery and pick-up ramp, and its own truck delivery to the consignee. Depending on the utilization of the waiting areas, this option saves additional hours in the drop-off and pick-up areas. Handling times will be reduced from approximately four hours for exports and six hours for imports to 120 minutes and 150 minutes, respectively. The terminal is open 24/7, 365 days a year. In contrast to Frankfurt, Paris-Orly, Zurich, Berlin or Warsaw, to name but a few major European hubs, night flight bans do not exist in Shanghai Pudong.

Supply chains: Don’t put all your eggs in one basket

Heiner Siegmund
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Supply chains: Don’t put all your eggs in one basket

… warns DHL in a remarkable analysis of latest supply chain trends. The ongoing global crises, including China’s constant military threat to Taiwan, have reinforced and recently accelerated a trend dating back more than four decades: the diversification of global production and supply chains. Lately, this phenomenon has increasingly been oversimplified as near-shoring, re-shoring, friend-shoring, China +1 and the like.
Here is a summary of DHL’s findings and recommendations for multinational investors and logistics companies, aimed at mitigating risks and avoiding unpleasant surprises.

The smarter diversification and supply chain solution – photo: CFG/hs

One-size-fits-all solutions are a thing of the past
The categories put under DHL’s microscope are Multi-Shoring, Multi-Sourcing, the Use of Different Transport Modes, and as a fourth dimension: the Diversification of Logistics Operations. In a foreword, DHL points out that supply chain diversification occurs as companies put aside agendas driven purely by cost efficiency and service levels. Instead, they now additionally focus on resilience, agility, and flexibility. This shift requires more sophisticated management of logistics operations, including design and inventory control, and may necessitate more investment based on longer-term planning. Since 1980, global trade has increased more than tenfold, reaching a record high of over USD 32 trillion in 2022 and remaining at that level throughout 2023.
The recent cascade-like accumulation of shockwaves caused by COVID-19, Russia’s war in Ukraine, the Hamas-Israel conflict, coupled with natural disasters such as the current heat wave hitting many regions, has led to considerable volatility, with disruption increasing by 183% since 2019 (33% in 2023 alone). The record highs also disguise the challenge of agility and resilience in supply chains, which prevent companies from responding effectively.

Missing out on USD 1.6 trillion in revenues every year
This vulnerability has resulted in an annual average of USD 1.6 trillion in unrealized revenue opportunities in the past few years, DHL calculates. The shelling of commercial vessels in the Strait of Aden by Houthi rebels is a daily occurrence and delays the ocean transportation of goods on the Europe-Far East route by around 10 days, as box carriers avoid the Suez Canal passage for security reasons and circumvent Africa instead.
This all asks for supply chain diversificationby augmenting the logistics infrastructure with additional capacities such as hubs, warehouses, and distribution centers. Depending on the requirements, this could include redundant logistics capabilities in other locations both near and far. DHL illustrates this by pointing at a European elevator manufacturer and a global productivity partner for mining and construction. Both employ a similar logistics diversification strategy but on a regional scale. Each company assembles different parts of its finished products at separate distribution centers across several regions. Spare parts are stored primarily at each country’s local distribution and customer centers, facilitating rapid repair of essential products as needed. Finished products are shipped directly from production sites to customer centers to ensure customer centricity and agility. This mitigates the risks resulting from ocean or rail transports halfway around the globe. A diversified logistics operation provides alternative options that maintain continuity in the supply chain during disruptions, DHL maintains.

Strategic gigafactories and supply chain diversification
To best illustrate the accelerating multi-shoring trend, the second category mentioned in the study, DHL showcases the Volkswagen Group and its electric vehicle strategy. The carmaker established ‘PowerCo’ to bundle the group’s activities along the EV battery supply chains. As a consequence, VW is now building gigafactories strategically located in key markets in Europe and North America. This allows the company to respond rapidly to market demands, optimize costs, meet sustainability goals, and reduce its dependency on the Chinese market.
Multi-sourcing is another tool to mitigate financial or operational risks such as a supplier’s inability to deliver on time or at all. But adding redundant suppliers to a company’s client base to be on the safe side by reducing dependencies might not be the smartest move.
Mode diversification is another category put under the microscope by DHL. It spans from one mode to parallel modes for each part or product. DHL mentions a best-practice model of supply chain diversification by highlighting a retail market leader. “Aiming to respond rapidly to consumer preferences and trends within 10 to 14 days, the company utilizes all modes of transport across all supply lines, opting, for instance, to ship goods via air freight between regions rather than using slower ocean freight. This allows swift and flexible stock reallocation between markets based on customer requirements and disruptions,” the DHL study states.

Enhanced infrastructures
As the final category of its supply chain diversification study, DHL focuses on the expansion of logistics capabilities. This means enhancing the logistics infrastructure with additional capacities such as hubs, warehouses, and distribution centers. Diversifying logistics operations may also involve outsourcing specific logistics activities. Like multi-shoring and multi-sourcing, a diversified logistics operation provides alternative options that maintain continuity in the supply chain during disruptions.
All in all, the study provides much food for thought. It is advisable for investors to take a close look at its contents before making decisions on diversifying their supply chains and business activities. After all, early information can prevent costly mistakes.

Spotlight on… Justin Atchison, Air Pricing and Procurement Manager DACH, CEVA Logistics

Brigitte Gledhill
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Spotlight on… Justin Atchison, Air Pricing and Procurement Manager DACH, CEVA Logistics

CargoForwarder Global’s ‘Spotlight On…’ series highlights the many different functions in the air cargo industry and talks to people involved in those jobs. There is so much that goes on behind the scenes when it comes to arranging air cargo transportation. Just one such aspect, and a crucial one when it comes to planning and commercial decision making, is pricing and procurement. This week, Justin Atchison, Air Pricing and Procurement Manager DACH at CEVA Logistics, takes us through his role, talks about what brought him to our industry, and has a few words of encouragement for those considering a career in air cargo.

Adaptability and mindset are crucial. Image: Justin Atchison

CFG: What is your current function? And what are your responsibilities?
JA: I lead the pricing and procurement team for the DACH region in the air cargo division at CEVA Logistics. My team and I manage tenders, long-term agreements, and spot business. Our goal is to unite all stakeholders — sales, customers, operations, and providers such as airlines, truckers, and handling agents — to find optimal solutions. Recently, I joined a European working group to share and implement best practices across various countries to enhance customer service.

CFG: What does a normal day look like for you? Or is there such a thing?
JA: In logistics, no two days are alike. Some days, I work on projects like improving pricing logic and streamlining processes with colleagues from other regions. On other days, urgent requests can disrupt plans, requiring immediate solutions. As we’ve seen over the past few years, unexpected challenges can include pandemics, geopolitical conflicts, severe weather, or unexpected offloads.

CFG: How long have you been in the air cargo industry, and what brought you to it?
JA: I entered the air cargo industry a decade ago through a trainee program with Lufthansa Cargo. I was more interested in the passenger side while studying air transport, but the opportunity to join a global cargo airline in the U.S. piqued my interest. After completing my trainee program, I handled pricing and related projects, including dynamic pricing in the Americas and new product implementation. Back in Germany, I helped implement the largest cargo joint venture on the North Atlantic, collaborating with experts from Lufthansa and United Cargo. This experience showed me the power of a diverse and skilled team with a common goal and what change it can bring. These lessons I now apply in my current role.

CFG: What do you enjoy most about your job?
JA: I love the constant learning and the competitive nature of the industry. Meeting customers and understanding the specifics of their businesses is particularly rewarding. I leverage my experience and network to enhance current solutions. Additionally, I depend on a wide range of colleagues from project logistics, ocean, ground, customs, and contract logistics, which provides ample opportunities for development and innovation. Working in an organization with a global reach adds to the excitement.

CFG: Where do you see the greatest challenges in our industry?
JA: Apart from industry volatility and consolidation efforts, digitization poses a significant challenge. While forwarding remains a people business, reducing transaction costs through automation is crucial. However, automating processes can diminish flexibility and personal connections with customers and team members. The key is to implement digital solutions smartly while maintaining valuable personal interactions. We must constantly evaluate where personal interaction adds value.

CFG: What advice would you give to people looking to get into the air cargo industry? Any particular training they should aim for?
JA: Adaptability and mindset are crucial. I’ve worked with geologists and linguists who became passionate and knowledgeable about air cargo. While formal education, apprenticeships, or internships are beneficial, the industry offers opportunities for those eager to work. Get your foot in the door, gain experience, and you can move around within the industry.

CFG: If the air cargo industry were a film/book, what would its title be?
JA: ‘Hitch – The Date Doctor.’ The forwarding industry is about creating useful matches, much like dating. Trust and honesty are paramount. Misrepresentation can quickly sour relationships, necessitating the search for new providers or customers. Success hinges on genuine and transparent interactions.

Many thanks, Justin, for your input.

If you would like to share your personal air cargo story with our CargoForwarder Global readers, feel free to send your answers to the above questions to cargoforwarderglobal@kopfpilot.at We look forward to shining a spotlight on your job area, views, and experiences.

Swiss WorldCargo captures CO2

Heiner Siegmund
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Swiss WorldCargo captures CO2

The Zurich-based freight carrier has launched a new product to fight global warming. Its name: Aviation Tech Pioneer. The initiative is based on a two-pronged approach: the removal of 20% of greenhouse gas emissions through an innovative technology, combined with the use of Sustainable Aviation Fuel that accounts for an 80% reduction.

‘Aviation Tech Pioneer’ is offered as a Green Choice add-on service, so it can be booked voluntarily by the airline’s cargo customers. This option complements existing measures introduced earlier by the carrier and results from a partnership with Zurich-based specialist, Climeworks. This particular partner was chosen because of its direct air capture technology (DAC) combined with CO2 storage solutions. Climeworks already operates the two largest DAC extraction and storage facilities in the world. Its integrated concept has put the company in a leading position worldwide within the carbon removal field.

Displayed is the second Iceland-based carbon storage facility operated by Climeworks. It opened in MAY24  –  photo: company courtesy.

Captured, pumped and stored
DAC is a vitally important method of removing CO2 directly from the atmosphere and storing it permanently underground so it can no longer contribute to global warming. Climeworks has erected two storage facilities in Iceland. There, its local partner Carbfix pumps CO2 deep underground, where the gas reacts with basalt rock through a natural process, transforming it into stone. In this way, it can remain safely stored for over thousands of years.
Swiss WorldCargo points out that DAC technologies also offer a scalable means of procuring atmospheric CO2 for use as a raw material in manufacturing the next generation of synthetic fuels, best known as Sustainable Aviation Fuels (SAF). As widely recognized, the use of such synthetic fuels is crucial to the decarbonization of the aviation sector. SWISS and the Lufthansa Group have long been industry pioneers in this field, driving the scale-up of these key fuel technologies.

There is no one-fits-all solution
With immediate effect, Swiss WorldCargo’s customers can now opt to support the scale-up of critical tech to reach net-zero in aviation, as well as work on achieving their own scope 3 emission reduction targets. As Climeworks’ first airline partner, Swiss WorldCargo’s new premium offering reflects SWISS’ ongoing commitment to scale-up key decarbonization technologies. The new add-on complements existing initiatives that are part of the carrier’s portfolio, such as investments in Sustainable Aviation Fuel (SAF), the use of lightweight containers or the procurement of modern and fuel saving aircraft. Combined, they have the potential to pave the way for more sustainable practices in the aviation and logistics industries for the years to come.
The current heat waves in the Middle East, India and parts of the USA, which have claimed thousands of lives, show just how essential it is to take measures to combat global warming and achieve the net zero target in aviation. For example, temperatures in Saudi Arabia rose to a record 51.8°C during the Muslim pilgrimage Hajj. Neighboring Egypt reports a similar heat wave, as do Cyprus and parts of the Indian Subcontinent.

MUC welcomes a home cargo carrier

Heiner Siegmund
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0
MUC welcomes a home cargo carrier

Munich Airport (MUC) is Lufthansa’s second-busiest cargo hub worldwide after Frankfurt. This is thanks to the belly capacity offered to the market by the airline’s intercontinental passenger flights operating from and to Munich. Soon, main deck A321 freighters will be adding main-deck uplifts of 28 tons to the available cargo booking options. The airport has long been campaigning for this service.

The management of Munich Airport is in a doubly festive spirit. First reason: Lufthansa Cargo is integrating MUC into its European regional network. This means that the years of campaigning to become part of Lufthansa Cargo’s trans-European A321F freighter services, pushed forward by MUC’s freight-minded CEO, Jost Lammers, have resulted in an initial success.
Secondly, MUC is getting a new home carrier. This is because the four A321 freighters flying in Lufthansa colors are operated by Lufthansa City Line, which is headquartered in Munich where their maintenance and technical center is also located. So, formally, the A321Fs are registered in Munich, without thus far serving the airport – until now.

Munich has long campaigned for getting an air freight home carrier. Now the mission is accomplished, states MUC’s CargoChief, Markus Heinelt – photo: courtesy MUC Airport

The market decides whether further flights will follow
This will change on 06JUL24. From that day on, the MUC-IST-MUC sector will be operated twice a week. Markus Heinelt, Munich’s Head of Cargo, speaks of a “welcome start” with hopefully more to come. Now it is up to the market to make the route a success. In all likelihood, this will also determine whether Lufthansa Cargo will increase the frequencies on this leg or add additional pan European freighter flights to and from Munich.
MUC-IST-MUC will be served on weekdays 6 and 7. “We expect demand to be high, as southern Germany accounts for 40% of the total air cargo market in Germany,” Manager Heinelt optimistically forecasts. And his boss, CEO Lammers, adds: “We see huge potential for air cargo at Munich Airport on account of the economic strength of our catchment area. As one of Europe’s leading airports with corresponding capacities for further expansion, cargo business is an important pillar of our Group strategy that will help us to achieve continued growth.”

High share of transit shipments
As far as products are concerned, it is likely to be mainly textiles from Turkey, but also car parts, chemical products and electronics flown westbound on board of Lufthansa Cargo’s A321F. These will include many transit shipments which will continue their journey via MUC to intercontinental destinations served by the Lufthansa long-haul fleet, predominantly in North and South America. Worth mentioning in this regard, is the recently announced connection between Munich and Sao Paulo, which will be served three times a week with an A350, starting from 09DEC24. Sao Paulo is the city with the highest number of German industrial enterprises worldwide that are active outside their national borders.
Eastbound ex MUC, cargo managers expect mostly automotive products, high-tech and pharmaceuticals to be flown by the A321Fs to IST; among them many transits coming from overseas.

Bhat speaks of an attractive network addition
The cargo airline has been operating a large-scale CEIV-certified pharmaceutical hub at Munich Airport since mid-2020. Hence, the local workforce is very familiar with the handling or interim storage of larger temperature-sensitive shipments.
Even though the first MUC-IST-MUC flight is still around 14 days away, Lufthansa Cargo clients can book their shipments on the new route with immediate effect. “This new freighter connection makes our global network even more attractive. For our southern German customers in particular, Munich Airport offers ideal conditions for the fast and reliable transportation of air freight, which ultimately also enables global business from another important European airport [Munich],” explains Ashwin Bhat, CEO of Lufthansa Cargo. The executive goes on to say: “With the launch of our cargo operations out of Munich, we are laying the foundation for aligning our network even more closely with the needs of our customers in the future and continuing to manage it flexibly.”

Excellent ground infrastructure
And with reference to its own pharma hub, the airline emphasizes that temperature-critical products can be stored and handled under optimal conditions. The facility is integrated into Lufthansa Cargo’s own premises comprising of 38,000 m² of space. Thanks to the well-developed ground infrastructure, the carrier is able to process and transport almost all products and commodities via Munich. Until now, these have mainly been accommodated in the lower deck compartments of the passenger fleets operating out of MUC, belonging to Lufthansa, Brussels Airlines, Discover Airlines, Austrian Airlines, and SunExpress. Soon, the main decks of the A321Fs will also be available, at least on the sector MUC-IST.

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