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Lufthansa Cargo on airfreight trends 2023

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Lufthansa Cargo on airfreight trends 2023. Image: Lufthansa Cargo
Lufthansa Cargo on airfreight trends 2023. Image: Lufthansa Cargo
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The global logistics market continues to experience turbulent times. Nevertheless, after three years in crisis mode, a normalizing market is in sight. Lufthansa Cargo is optimistic about the year 2023 and is positive about fundamental trends such as digitalization and sustainability as well as the associated challenges in airfreight.

Increasing capacities likely

The peak phases of the Covid pandemic clearly demonstrated the importance of air freight in logistics. It is an indispensable component of global supply chains. This made the past crisis years all the more challenging for the industry. The temporary shutdown of many passenger aircraft fleets led to a considerable loss of cargo space, as around half of the world’s air freight tonnage is carried as supplementary cargo. Although there will continue to be strained supply chains, partly due to global dynamics, Lufthansa Cargo nevertheless expects increasing freight capacities to help ease the situation in the coming year. Above all, the continuous increase in passenger flights and the outlook for a reopening Asian market allow us to look to the future with confidence.

“Recent years have shown that global trade is resilient and there continue to be growth markets. Air freight has always been dynamic and volatile. Flexibility is and will continue to be in demand in the future,” said Dorothea von Boxberg, Chairman of the Executive Board and CEO of Lufthansa Cargo. The year 2023 will not require a fundamental change in strategy, but will continue to drive measures already underway and maintain a forward-looking willingness to learn, von Boxberg added.

Digitization and AI as a competitive factor

Across all industries, the pandemic years have led to digitalization being driven forward strongly in many areas. According to Lufthansa Cargo, this will continue in the airfreight sector, and at an accelerated pace. Networking through the intelligent use of data and the increasing automation of processes will become performance and competitive factors for the industry.

“Even before the pandemic, topics like digitalization and AI were important. In air freight, there are still many opportunities to use data to add value and interact with partners in real time. The industry is characterized by the fact that we collaborate very strongly across the board. One example of this is the nationwide research project ‘Digitales Testfeld Air Cargo’ of the German Federal Ministry of Transport (BMVI), which is coordinated by the Fraunhofer Institute for Material Flow and Logistics (IML). We are pleased to be working as a project partner to help position Germany as an air cargo location for international competition in the future,” says Dorothea von Boxberg.

Sustainability still a major issue

The future of air freight logistics will continue to be driven to a large extent by the issue of sustainability. Today, the industry is already making a diverse contribution to climate protection. In addition to CO2neutrality on the ground, for example through electrification or solar installations, Lufthansa Cargo believes that it will be indispensable to further advance the sustainability of the aircraft as a means of transport, for example through fleet modernization. However, it is also important that regulations on quotas of sustainable fuels (Sustainable Aviation Fuels) are designed to ensure fair competitive conditions. “For us, sustainability is a very special priority. We have set ourselves the ambitious goal of halving our CO2 emissions per kilogram when flying by 2030. Efficient flying and expanding the use of sustainable fuels are the focus,” explains Dorothea von Boxberg. “But to really make a difference, we need to think holistically about the issue and also take smaller measures such as loading equipment optimization and recycling seriously. We are convinced – every contribution counts.”

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Air Freight

MSC acquires the majority stake of AlisCargo Airlines

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MSC acquires the majority stake of AlisCargo Airlines. Image: Unsplash
MSC acquires the majority stake of AlisCargo Airlines. Image: Unsplash
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MSC has acquired the majority stake of AlisCargo Airlines, a Milan-based air freight carrier; the parties confirmed that the transaction is a first step towards the acquisition of 100% of AlisCargo Airlines by MSC, expected to happen at the beginning of 2024, once AlisCargo Airlines will restart operations with the delivery of a Boeing 777F. This transaction is yet another step to further developing MSC Air Cargo operations and creates a European gateway and transit point for MSC’s air cargo solutions. Furthermore, the deal complements MSC Air Cargo’s aim to expand its existing trade lane network with better coverage and increased flexibility.

MSC Air Cargo Senior Vice President Jannie Davel stated: “The acquisition of a majority share in AlisCargo Airlines is a step towards expanding MSC’s Air Cargo solution capabilities, and ultimately providing our customers with a quality and consistent offering. I am equally proud that we have found a partner that shares a common vision with us and has built a strong foundation for which we hope to further develop.”

The majority selling party is represented by the Leali Group, led by Mr. Domenico Alcide Leali who, after the success with Air Dolomiti started AlisCargo Airlines in 2019.

Mr. Giacomo Manzon, General Manager of AlisCargo Airlines briefly commented: “I am proud to see a group like MSC entering as a major shareholder of AlisCargo Airlines and developing further the project that Leali Group has initiated. I am thankful for MSC’s trust in us, and we will work hard together to make it a success story.”

MSC Air Cargo has been building up its air cargo offering through numerous strategic partnerships with sales agents and software providers. MSC Air Cargo provides a complementary solution to MSC’s core shipping services and operates two aircraft managed by Atlas Air Worldwide between Europe, Central America and Asia and will add two more in the next 6 months. Following the completion of the operation, MSC Air Cargo will have a new operating license and a fleet of 5 wide-body aircraft within the next 12 months.

Banca Finint acted as financial advisor to Leali Group. Gianni & Origoni acted as legal advisor to MSC and Leali Group, with two separate teams of lawyers from its Milan and Padua offices, respectively.

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Air Freight

cargo.one announced a landmark partnership with Eastern Air Logistics

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cargo.one announced a landmark partnership with Eastern Air Logistics. Image: cargo.one
cargo.one announced a landmark partnership with Eastern Air Logistics. Image: cargo.one
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Eastern Air Logistics and cargo.one announced a landmark partnership to bring extensive capacity from both China Eastern Airlines and China Cargo Airlines to the real-time digital booking platform. The air logistics group will utilize cargo.one’s award-winning seamless digital booking experience, and gain access to its global footprint of many thousands of freight forwarders. cargo.one is already collaborating intensively to help guide and maximize the airline’s sales digitalization journey. On the heels of cargo.one’s recent launch of cargo.one pro, the deal reflects a strategic focus by Eastern Air Logistics to utilize the most modern and globally relevant partners for its digital transformation.

Eastern Air Logistics harnesses the scale of China Cargo Airlines’ dedicated Boeing 777 and 747 freighter fleet as well as belly capacity in nearly 800 China Eastern Airlines passenger aircraft. The carrier offers 184 countries and regions and benefits from state-of-the-art air cargo depot facilities at major Chinese hub airports such as Shanghai, Beijing, Kunming, Xi’an and Wuhan, as well as a nationwide transportation network.

The addition of Eastern Air Logistics capacities into the cargo.one platform means freight forwarders in close to 5000 forwarding offices worldwide will gain the most user-centric instant access to its valuable capacity into China and across Asia Pacific. The connectivity cargo.one delivers as a 24/7 booking platform will help Eastern Air Logistics to grow its international bookings and remain front of mind with freight forwarders in all relevant markets. cargo.one guarantees an unbeatable digital buying journey to every booking customer.

Jonathan Xu, General Manager of Logistics Solutions Business Dept. at Eastern Air Logistics, comments, “Our close collaboration with the cargo.one team over the past months stands out and forcefully boosts our trajectory to become the most innovative integrated logistics service provider. A clear benefit of partnering with cargo.one is the strength of its insights, proactive partnership support and the valuable best practices for digital that we are gaining for our first steps into digital distribution.”

“It is vital that every freight forwarder globally has rapid and seamless access to the best capacity options for China. cargo.one and Eastern Air Logistics compliment each other perfectly in offering end to end agility and a great experience that forwarders can depend upon”, says Moritz Claussen, Founder & Co-CEO of cargo.one. “It is a real pleasure to work alongside Eastern Air Logistics as they leverage our substantial market force, and benefit from the only next generation multilateral marketplace, and one loved by forwarders”.

Both companies enjoy a proven track record of innovation-leading to drive growth in global freight forwarding markets. For example, cargo.one pro now empowers agents to conduct seamless digital agent-to-agent bookings globally in seconds. cargo.one will position Eastern Air Logistics to profit from the surge in digital forwarding in all markets.

Over the past year, cargo.one has rapidly expanded its participation in the Asia Pacific market. Partnering with national carriers and top three airlines in countries including China, Japan and Singapore, cargo.one is the clear partner of choice for airlines in the region to go digital. cargo.one comprises an essential component of an airline’s efficient multichannel sales setup, as well as supporting revenue and capacity management endeavors.

From Summer 2023, freight forwarders can soon book Eastern Air Logistics capacity using the cargo.one marketplace. Customers will enjoy access to important trade lanes between China and hubs including within Europe – Frankfurt, London, Budapest, Amsterdam, in North America – New York, Los Angeles, Toronto, and in Asia Pacific – Singapore, Kuala Lumpur and Ho Chi Minh.

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Air Freight

Silk Way West Airlines joins forces with cargo.one

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Silk Way West Airlines joins forces with cargo.one. Image: cargo.one
Silk Way West Airlines joins forces with cargo.one. Image: cargo.one
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Silk Way West Airlines and cargo.one announced a global partnership to bring the airline’s freighter capacity to the air cargo booking marketplace. By joining customer experience advocate cargo.one, favored by forwarders in all important markets globally, Silk Way West Airlines will expand its digital footprint and align with the highest standards for digital air cargo booking. The airline also gains the market experience and actionable support of cargo.one teams to accelerate digital sales adoption for its capacities.

Headquartered in Baku, at the heart of the Silk Road, Silk Way West Airlines is the largest cargo airline in the Caspian Sea region. The airline carries over 420,000 tonnes of freighter capacity annually, utilizing a fleet of 12 Boeing 747F aircraft with front-loading capabilities. Silk Way West Airlines is progressing an impressive strategy of expansion, in which maximizing its digital distribution to every relevant market plays a vital role.

The strategic location of Baku as a hub helps Silk Way West Airlines to span over 40 key destinations across Europe, the CIS, the Middle East, Central and Eastern Asia, and the Americas. Silk Way West Airlines is unique in building an attractive digital offering for larger shipments, where the market is currently under-served. Freight forwarders have long been attracted to the airline’s connectivity, which cargo.one will now deliver to agents with digital speeds and greater convenience than ever before.

President of Silk Way West Airlines, Wolfgang Meier, comments, “Our partnership with cargo.one is an important milestone in our ambitious digitalization journey. By bringing our capacity to cargo.one’s expansive customer base, we will both broaden our reach and enable many more forwarders to benefit from our services. cargo.one and Silk Way teams are collaborating very closely, and we are relying on their proven expertise to enhance our buying journeys and drive up our share of digital air cargo sales.”

Moritz Claussen, Founder & Co-CEO of cargo.one, adds, “For the many thousands of agents who are thriving with digital bookings on cargo.one, the addition of Silk Way West Airlines’ capacity is fantastic news. Due to its keen awareness of the changing market, Silk Way West Airlines is now putting cargo.one, as the best-in-class digital enabler, at the center of its digital sales growth trajectory.”

cargo.one’s more than 40 airline partners profit from its targeted innovations that enable forwarders in dozens of countries to book more easily and often. Silk Way West partners with cargo.one shortly after the launch of its revolutionary cargo.one pro and cargo.one protect solutions for instant and seamless agent-to-agent bookings. A transformed digital booking experience for all import and export shipments now makes cargo.one the air cargo one-stop-shop for many agents worldwide.

From Autumn 2023, freight forwarders can book Silk Way West Airlines capacity using cargo.one.

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