proMotion December 2016
Dear Customers and Partners,
Together, we look back at a turbulent year for air cargo. Calling it anything but a crisis would surely be an understatement. While we continue to transport nearly the same volume of cargo, overcapacity has led to a dramatic drop in prices, which is having a serious adverse effect on the entire industry. We have not come away unscathed either, as it is very likely that we will wrap up this year with a net loss.
Fortunately, however, we recognized the signs early on and began adapting our strategy to the market situation already a year ago. In addition to a drastic cost-cutting program, these efforts include product innovations, digital initiatives and partnerships with other airlines. Taking this step has already begun to bear fruit. This year, we introduced td.Basic, for example. It is a cost-effective online product for price-sensitive standard freight, which some of you have surely booked already. We also significantly expanded our partnership with All Nippon Airlines, which we began in 2014. I am thrilled that we added not just one, but two more partnerships this year. We recently joined forces with Cathay Pacific Cargo in Hong Kong, and beginning in February 2017, you will be able to book the first consignments from Hong Kong to Europe on our partner’s routes. We are currently finalizing the agreements with United Cargo, and I look forward to reporting more on this in 2017.
We will continue taking big steps next year − on all levels. Beginning on January 1, 2017, our world of sales will no longer be divided into four, but rather eight business areas. In the process, the company is cutting out one management level. The key factor, however, is our aim to be as close as possible to you. The new organizational structure will facilitate shorter lines of communication, even closer contact and additional flexibility.
Plenty will be happening in the digital realm as well. As you can read about in this issue, we launched our shipment tracking tool, known as eTracking, in mid-November. eTracking provides a range of new functions, such as proactive status notifications and the possibility to get information about the operational status of the flight. Our online booking platform eBooking will be launched in the third quarter 2017 with many new benefits and innovative features. Overall, it will make the booking process faster and much more efficient, while new services make it easy for you to search, select and book our products and add-on services online.
From a personal point of view, I am particularly pleased that we never lose sight of our social commitment despite these turbulent times. This year was again full of activity at Cargo Human Care, and it fills me with pride to see all that our employees are doing and achieving: already 13 occupied living spaces in our new John Kaheni Residence, 600 participants in the "office city run" on behalf of CHC, 200 sponsorships for children and young people, and more than 24,000 treatments at the CHC Medical Centre and in external medical camps. These are just a few of the impressive figures. Find out more by reading the article on Cargo Human Care in this issue. I can only express my heartfelt thanks to all partners and to everyone who has lent their support and backing for their commitment. I look forward to many great new achievements next year.
With this in mind, I would like to wish you a wonderful holiday season and some relaxing quiet time with your families and friends. I look forward to tackling the challenges of an exciting 2017 with you and celebrating our successes together.
Did you know? Seven amazing facts from the airfreight year 2016
The airfreight world is constantly on the move. Legions of statisticians and analysts quantify the market for airfreight consignments each month based on a wealth of differing performance indicators. They aim to glean the most detailed indicators of future developments from the information. New, interesting and on occasion astounding facts and views repeatedly come to light in the totality of the collected data. At this point we do not, as usual, deal with tonnages and growth rates for a particular region or group of commodities, but with some of the most amazing facts from the statistics on the airfreight year 2016.
would be the length of 40-ton trucks bumper to bumper if one were to completely unload the airfreight exported worldwide in 2016. The route is about one third of the earth's circumference at the equator. According to Seabury's calculations, this year about 21.1 million tons of freight were exported by plane – more than 844,000 truck trips if one assumed that each truck-trailer had a load of almost 25 tons.
of airfreight of the Temperature or Climate Control category were exported by Kenya this year to Europe according to calculations by Seabury. In 2016, the eastern African country surprisingly held the number one position in the worldwide comparison of export tonnage for so-called perishables. In that respect, cut flowers and food account for the lion's share of Kenya’s exports.
of the worldwide airfreight tonnage is currently transported in the bellies of passenger machines. This is based on calculations by IATA and the airline manufacturer Boeing. However, the significance of the bellyhold freight varies on the different intercontinental traffic routes. On routes between Asia and North America just under 20 percent of the freight tonnage is forwarded as belly freight – between Asia and Europe the figure is already 28 percent while between Europe and North America it is about 57 percent.
of airfreight of the Live Animals category are exported by the Philippines each year to the Asia-Pacific region. The island country in South East Asia is therefore by far one of the largest airfreight exporters for live animals worldwide. In that respect, exotic ornamental fish account for a large share of the exported tonnage. If all arrived at their place of destination at the same time, five completely filled Olympic-size swimming pools would be required to house all the fish.
higher than in the same month last year – this is how the freight ton kilometers in the airfreight sector developed according to calculations of IATA in September 2016. That is the sharpest increase since February 2015. Nominally, the overall performance of the airfreight carriers is about 18 billion freight ton kilometers each month – with this figure set to increase. By comparison, European airlines saw the sharpest increase compared to the same month last year worldwide at about 12.6 percent.
is the average value of one ton of airfreight according to the current calculations of the German Aviation Association. By comparison, the value for each ton transported by truck is 2,820 euros, by ship it is 1,978 euros and by rail 1,166 euros.
New eTracking platform with custom notifications.
Our new tracking tool has been available for you to use since mid-November.
With eTracking, you receive a wide range of new shipment tracking functions:
Customizable proactive notifications
Under eServices on Lufthansa Cargo’s website, you can set up a custom notification profile, which can be edited at any time. The profile enables you to store contact details for several people and decide who should be notified for which status by email, fax or text message.
Compact shipment overview
The general overview provides you with information on the status of your shipments at a glance. You have the option of customizing the overview to suit your needs and ensure complete transparency with great efficiency.
Flight status display
From departure to landing and delays, the flight status display provides you with information about all relevant movement of your freight by air.
Excel and PDF download options
Conveniently download all tracking information, whether as a PDF or an Excel file for further processing.
Click here and try out the new eTracking tool.
- Cargo Human Care. Our humanitarian and medical aid project started.
- Aid flight to Haiti. More than 70 tons of cargo are to be loaded.
- Cooperation agreement with the German Red Cross. Strong and harmonious cooperation.
- First step of digitization in South America. Electronic Air Waybill (eAWB) Single Process.
- Lufthansa Cargo repositions sales. Eight business units.
A year at Cargo Human Care in figures.
In the run-up to Christmas, we traditionally take another look at Cargo Human Care, our humanitarian and medical aid project started by Lufthansa Cargo employees in cooperation with physicians across Germany. This year was again full of activity at Cargo Human Care. We take stock of 2016 once more by focusing on the highlights from the world of Cargo Human Care as expressed in figures.
24 young trainees are expected at the John Kaheni Residence in Nairobi by the end of this year. A year ago, we reported here on the opening of the new John Kaheni Residence. It serves as housing for those leaving the Mothers’ Mercy Home for orphans. The objective is to support these young people through seminars and a well-functioning network of company contacts as they strike out on their own to lead independent lives. In March, the Residence finally came alive when the first 13 alumni moved in. More alumni joined this month, so there will be complete occupancy − 24 residents − by the end of this year. The Residence is already celebrating some initial success: the first alumnus recently went into business for himself. Moses opened his own small carpentry workshop.
18,000 euros is the amount that Cargo Human Care received from the German Embassy in Kenya to help fund construction of a new building at the Mothers’ Mercy Home. Construction has already begun, and the building will feature several large rooms for activities for the children, offices for the social workers and a small apartment for the bus driver, Robinson.
200 euros in additional monthly costs are incurred for feeding the children at the Mothers’ Mercy Home. A dietitian spent four weeks there on a voluntary basis and analyzed the children’s nutrition. Despite a relatively balanced diet, the nutrition specialist saw need for improvements − such as in the form of additional milk, cheese and eggs. The costs of the additional food are covered by the association, but also by some earmarked donations from members who bear the costs each year during the month of their birthday.
45 children from very impoverished families are looked after at a small private preschool in Kawangware, a slum on the outskirts of Nairobi. Cargo Human Care recently began providing support for a young teacher named Tabitha, who faces difficulty in dealing with authorities and potential finance partners. Cargo Human Care has also succeeded in getting Anglican Bishop Timothy Ranji on board as a partner, and his employees are currently developing a Guardians Empowerment program. As part of training courses, parents − usually just single mothers − are taught how to establish a small livelihood. The first training course was held on November 26 with 26 parents.
50 physicians are now part of the Cargo Human Care team. They cover a wide range of areas of specialization. A urologist and another surgeon joined this year. A team of doctors, consisting of two physicians with different areas of specialization, work several 3-4 day shifts per month at the Cargo Human Care Medical Centre. In addition, the Centre is always staffed with local medically trained personnel who guarantee continuous care for the patients.
24,000 treatments were performed this year thanks to the fantastic commitment of Cargo Human Care at the Medical Centre and in external medical camps.
600 runners lined up on August 26, 2016, to take part in the second „office city run" in Frankfurt for a good cause. In keeping with the slogan “Step by step. Giving children a future.”, every step the runners took benefited the aid project.
16,500 euros in donations for Cargo Human Care were collected as a result. The proceeds will go towards the purchase of an emergency generator for the John Kaheni Residence.
200 sponsorships have now been established at Cargo Human Care for children and young people in the areas of medicine, schooling and training.
30 more children are still looking for a sponsor who will make it possible for them to attend a private school. With just 30 euros a month, sponsors make an incredible contribution here to the lives of these young people. Are you interested? Learn more at www.cargohumancare.com.
1,000,000 thanks go out to patron Frank-Walter Steinmeier, who Cargo Human Care had the opportunity to meet once again in May, as well as to all customers, partners and colleagues who have been supporting Cargo Human Care for years. This excellent work would not be possible without you.
On this note, we would like to wish everyone a wonderful holiday season, and we look forward to an eventful 2017 with Cargo Human Care.
Aid flight from Frankfurt to Haiti.
In the gray dawn of a November morning, our MD-11F “Charlie Kilo” awaits its cargo: more than 70 tons of cargo are to be loaded, consisting of urgently needed relief supplies for the people in the earthquake zone of Haiti. On October 4, hurricane Matthew hit Haiti, with wind speeds of up to 230 kilometers per hour. Countless homes were destroyed and streets and fields were submerged. To date, more than 500 people are believed to have died. Over 175,000 houses were damaged or destroyed. Multiple cases of cholera have already occurred and quick action is required to prevent an epidemic on the scale of that seen in 2011.
Once the loading process − complicated by adverse weather conditions − is complete, there are tents, tarpaulins, emergency health kits, cholera kits, drinking water filters, water purification tablets, sterile syringes and clothing for children and babies on board. The provision of clean drinking water as well as medical supplies on site can be ensured, thanks to these items.
The aid flight is a joint effort: Foundations such as the “Deutsche Bahn Stiftung” and children’s aid network, “nph deutschland”, are providing this aid as part of a joint campaign with logistics specialist DB Schenker and seven other aid organizations, namely the members of the relief coalition “Deutschland Hilft”, aid organisations “Johanniter-Unfall-Hilfe”, “action medeor”, “ADRA”, CARE, World Vision and “humedica”. Lufthansa Cargo operates the flight.
Despite some erratic weather in Frankfurt and Haiti, the freighter was able to land in Port-au-Prince after some eleven hours of flying time, delivering the urgently needed relief supplies to their destination.
|Relief flights to countries that are stricken by natural disasters hold a long tradition at the Lufthansa Group. We have also provided cargo flights for aid in past catastrophes, such as the earthquake in Haiti in 2010, the Pakistan floods or the nuclear disaster in Fukushima. We have been collaborating with the “Aktion Deutschland Hilft” relief coalition since February 2013, so as to be able to provide quick supplies of aid worldwide, in the event of such disasters. Our aim is to expand these collaborative efforts. In the news item about the German Red Cross, we report at length on teaming up with one of the world’s largest aid organizations in the future.|
Lufthansa Cargo signs cooperation agreement with the German Red Cross.
When disaster strikes, the assistance provided must be fast, flexible and effective. We have recently signed an agreement with the German Red Cross humanitarian aid organisation, that will put their cooperation on global aid transports on an even more efficient footing for the future. This cooperation will considerably simplify and accelerate the preparation of aid flights. This will facilitate the provision of effective support and supplies to those in need during crisis situations in which aid is required quickly.
“Thanks to the new cooperation, we will be able to transport German Red Cross aid supplies even faster to disaster zones. When every minute counts, strong partners who can work together optimally are needed. We are delighted when we can use our logistics expertise to help get direct assistance to people in need”, said Peter Gerber. “As Germany’s largest humanitarian aid organisation, we operate in more than 50 countries. We are really delighted to have Lufthansa Cargo on board, a partner we can rely on in a disaster”, added Christian Reuter, Secretary General of the German Red Cross.
We have already helped aid organisations to transport relief supplies for disasters time and again in the past. Find out more about the topic by reading the article “Aid for Haiti” in the current issue of proMotion. Transports by air play an important role if not enough of the goods needed, such as medications or drinking water treatment systems, can be sourced in the country in question or if they are of insufficient quality. The disaster relief organisations also benefit from our many years of experience in the area of charters. With Network-on-demand, we can transport aid shipments quickly, professionally and flexibly to all destinations within and outside of the Lufthansa network.
First step of digitization in South America.
DB Schenker together with Lufthansa Cargo start electronic Air Waybill (eAWB) Single Process for shipments from Brazil.
Thanks to close cooperation with DB Schenker in terms of digitization, we succeeded in reaching another eAWB milestone together. In July 2016, DB Schenker was our first customer to switch to the electronic air waybill for cargo from the two airports in São Paulo, Viracopos (VCP) and Guarulhos (GRU).
This project started with a rollout process aimed to establish an eAWB guideline to suit the local Brazilian regulations. The process was set in motion after a feasibility study was performed in early 2016 resulting in a general framework that allows the implementation of a solid eAWB process for VCP and GRU.
“The cornerstone of starting eAWB in Brazil was a result of the excellent cooperation between our customers, innovative warehouse companies in VCP and GRU, and Lufthansa Cargo” summarizes Ingo Hellwig-Delaminsky, Director Visibility Solutions at Schenker AG. For example, messaging requirements had to be clarified in accordance with local standards.
“With the start of the eAWB single process in Brazil the first step of digitization has been achieved in South America” mentions Thorsten Friedrich, Head of eAWB Global Rollout at Lufthansa Cargo. Plans are already underway for digitally implementing additional documents worldwide. One initial focus is on the house manifest, the shipper’s declaration for dangerous goods and the consignment security declaration. The long-term objective is to establish a paperless interface with the customer, which will lead to faster throughput times, greater transparency and higher process quality, to the benefit of all partners in the supply chain.
Lufthansa Cargo repositions sales.
In the future, our sales world will be divided into eight business units, instead of the previous four. By doing so, we remove one management level. The previous business areas, namely Europe, Africa, America and Asia/Pacific will be redefined. Sales in Germany remain broadly unchanged and will be headed up by Florian Pfaff as before. In the future, there will also be the new regions of West Europe (headed by Thomas Egenolf), North and East Europe (headed by Annette Kreuziger), Middle East and Africa (headed by Frank Beilner), USA and Canada (headed by Bernhard Kindelbacher), Latin America and Caribbean (headed by Gunnar Löhr), North and North East Asia (headed by Frank Naeve) as well as South and South East Asia (also headed by Frank Naeve; who is to fill both roles). The eight regional managers will report directly to Board Member Product & Sales Alexis von Hoensbroech.
"We want to be as close to our customers as possible", says Dr Alexis von Hoensbroech, Board Member Product and Sales. "Our new organisational structure creates shorter communication paths, even more direct customer contact and greater flexibility."
Other areas will be restructured, too. "Commercial & Quality Management" will go under the leadership of Heide Hoffmann, "Production Control" will be managed by Dr Christian Lehr, "Global Handling Development & Solutions" is to be under the control of Byung-Hee Glugla, "Global Handling Customer Service" will be run by Tanja Eibich, "Industry Development & Product Management" will be headed up by Alexander Kohnen and "Product Development" will be under the management of Stefan Frankenhauser.