You don’t have to look too far to figure out why Lufthansa Cargo is consistently on top as the number one combination cargo carrier in North America.
     Lufthansa Cargo has enjoyed a long history of firsts, marked by over six decades of a pioneering culture that has been developed, widened, and advanced over the years.
     Lufthansa flew the first B747F nose loader and today fields a fleet of 19 freighters.
     Lufthansa developed the first automated cargo terminals with a plug-in dock for the B747F.
     The list of firsts (many of which became industry standards) that have come out of the airport near the Main River in Germany is endless.
     There have also been some great cargo people who have served as Lufthansa Cargo Vice President the Americas, including Walter Lieblein in the 1970s and Klaus Holler until 2012. That tradition continues with Achim Martinka.

In 1975 Helmutt F. Klumpp (above left) was Lufthansa systemwide manager for cargo. What Mr. Klumpp did was to convince the airline’s hierarchy to purchase the first B747 freighter in 1970. Cargo revenue contribution to the airline was put at 21.4 percent. Walter Lieblein (above right) was cargo manager for North and Central America at Lufthansa when the airline introduced the world’s first 747 freighter on the Frankfurt-New York run April 1972, connecting the two cities with advanced automated handling terminals. (JFK pictured here). In October 1975 he told Air Cargo News FlyingTypers: “What we learned from the beginning was that ground handling makes all the difference. It’s the first and the last hundred feet, the distance between the airplane and the terminal docks where our service really comes into play.”

     At a press conference in Manhattan on Thursday, May 28, somebody asked Lufthansa Cargo Vice President The Americas Achim Martinka about the new cargo center for Frankfurt (which was put on ice earlier this year) and he was unfazed and self confident, responding:
     “We have added five new efficient B777 freighters to our fleet and are making rapid advances in our next generation IT program, both of which are huge investments, so we have accomplished two out of three initiatives (the third being the planned new facility) that will result in direct benefits for our customers.
     “Of course, we would like to build the next generation cargo handling facility for Frankfurt but will need to revisit that option to see if it makes sense in two years.
     “In the meantime our customers will be well served as we upgrade the present facility and we prefer not to complain like a child that did not get all he or she wished for at Christmas!”
     We like Achim in America.
     Our bet is his colleagues and customers like this smiling, easygoing, very smart and engaging air cargo executive as well.
     Achim tells it like it is.
     He is also, as some New Yorkers might say, “Too cool for school."
     “We are not just Germany anymore.
     “We play in The UK,” Achim smiles.
     "Lufthansa Cargo also serves two other countries in Europe, which we connect directly with the U.S. via our freighters, including Manchester in UK from Dallas, Atlanta, and Chicago, and to Stavanger, Norway, from IAH for our oil and gas customers.
     “Beginning in June our newest Americas freighter destination is Natal, a city in Brazil that fits in perfectly, lining up with Frankfurt via Viracopos once weekly,” Achim said.
     "Our program for 'Lean Logistics' here in the Americas is examining many of the small (and large) details to make our cargo offering as green as it can be as we all must go a bit further to protect and defend the environment,” Achim said.
Geoffrey/Flossie

Jeff McCorstin has become one of FlyingTypers’ go-to guys for freight strategy in Asia. And, as ever, our latest conversation with the President of UPS Asia Pacific’s Global Freight Forwarding District was nothing short of illuminating.
     He is optimistic on the short- and long-term prospects of the air freight market, particularly on the Transpacific trades where, over the last year, UPS has found success offering solutions from across its product portfolio which allow clients to avoid U.S. West Coast port congestion. He also believes that in many parts of the world the economic outlook is improving.
     “In the U.S., employment, consumer sentiment, and business sentiment are all on the upswing,” he said. “More significantly, a new generation of start-up and nimble companies from across Asia are leveraging new technologies, innovations, and collaborative approaches to go global.
     “In China, UPS has coined this the ‘Made in China 2.0’ era. It is not isolated to China but happening all across Asia, particularly in Southeast Asia. We believe these Asian businesses will play an instrumental role in the next wave of global growth.”
     On the latter point, McCorstin said more Asian SMEs were looking to compete alongside global multinationals for market share. “As UPS does business with companies of all different sizes, we see the needs of these companies proliferating by size and industry segment,” he said. “For this reason, UPS is offering segment solutions, deepening our freight portfolio and making improvements to our overall air network in Asia to support our diversifying customers.”

     Following a strong end to 2014, global air freight demand is expected to rise 4.5 percent in 2015, according to the International Air Transport Association. A recent Boeing report also predicted world air cargo traffic would grow at 4.7 percent per annum over the next 20 years and air freight, including express traffic, would average 4.8 percent annual growth measured in revenue ton-kilometers.
     As a result of the welter of encouraging economic and industry-specific data, McCorstin is upbeat.      “As a top 10 global forwarder, we will continue to support our customers through our comprehensive portfolio of global freight forwarding services, which, as a stand-alone or bundled together, create innovative supply chain solutions to meet our customers’ shifting needs,” he said.
     Although U.S. West Coast port congestion and labor issues are finally being drawn to a close, he expects congestion at ports to remain a determining factor in transport planning in 2015. He reported ongoing blockages in the U.S. and Manila, and recent shorter delays at ports such as Hong Kong, Shanghai, Qingdao, Incheon, and Cat Lai in Ho Chi Minh City.
     “Over the years, UPS has become very good at managing a multi-modal network,” he said. “During the peak of the West Coast port congestion, one tactic we employed to keep the public informed was through webinars hosted by our leadership that provided market, contingency and operational updates.      At the peak of the congestion and at the behest of our customers, UPS helped facilitate the movement of goods by adding additional charters or flight segments that saw over 2,000 tonnes of additional capacity shifting from ocean to air.”
     McCorstin expects intra-Asia traffic to continue driving the overall air freight market with a growth rate of 6.5 percent per year over the next two decades—faster than any other international market. He cited Trade Finance Magazine, which found that intra-Asia was the fastest growing trade corridor worldwide, representing approximately 25 percent of Asia’s total US$6 trillion worth of exports.
     “Demand is being driven by the shift in low-cost manufacturing from China to other parts of Asia, and the rise of consumers across the region,” he explained. “So while we believe traditional trans-pacific and Asia to Europe trade lanes will remain important from a macro-perspective, I think we’re at the tipping point of a self-sustaining and self-trading Asian economy.
     “Business within Asia, which now accounts for nearly half the exports of the countries in the region, will be driving Asia’s overall air cargo traffic growth.”
     Another key factor in the growth of intra-Asian trade will be the start of the ASEAN Economic Community which is set to remove a range of trade barriers between ASEAN nations and open up new opportunities for OEMs due to the bloc’s various bilateral free trade agreements, such as the 2010 FTA with China.
     “ASEAN integration will also lead to greater regional cooperation and improve the scale, efficiencies, dynamism, and competitiveness of ASEAN members while enabling easier movement of goods, services, investment, capital, and people within more markets,” said McCorstin.
     He believes that as trade within the region grows, businesses will need to navigate regulatory complexities and meet high customer expectations. “UPS’s role is to enable local businesses to reach previously untenable export destinations by working closely with customers and policy makers to ensure we offer appropriate products and services in those markets,” he said. “To support the ASEAN economies, in the third quarter of 2014, UPS established a Southeast Asian road network from Singapore all through to Vietnam that connects to China, a significant trading partners for many ASEAN economies.”
     As the key facilitators of liberalization, governments will play a key role in the success or failure of AEC. “We have observed that ASEAN has made efforts to work together and look forward to further enhancements, in particular, lowering trade barriers can trigger a 60-80 percent increase in cross border sales,” he said. “And today, transportation and customs regulatory requirements vary greatly among ASEAN members, which can hinder transportation efficiencies and delay the clearance of goods at borders.
     “The ASEAN Single Window will play a critical role in border agency coordination, simplifying customs clearance, and encouraging intra-ASEAN sourcing and inter-regional trade. “
SkyKing

Editor's Note: This article was conducted in April 2015.