Logistics News Briefing
February 2020
Top Stories
Digital Logistics
Perishables & Pharma
Regulation & Procedures
Express & eCommerce
Maritime & Waterways
Green Logistics

Geopolitical issues have been overshadowed by the coronavirus outbreak, with shippers and transport companies obliged to scale back or shut down operations in China, and quarantine rules and travel bans impacting supply chains around the world. Temporary disruption over a few weeks should not have a lasting effect, but anything longer could threaten severe shortages, price hikes and permanent changes to supply chains, according to Benny Mantin, director of the Luxembourg Centre for Logistics and Supply Chain Management, who has analysed the impact of the coronavirus on shippers.

Top Stories

Coronavirus means rethinking supply chains: LCL’s Mantin

The disruption in China caused by the coronavirus outbreak will immediately impact air freight-based transport, before affecting slower, container-dependent supply chains in the medium-term, says Professor Benny Mantin, director of the Luxembourg Centre for Logistics & Supply Chain Management at the University of Luxembourg. He adds that a lengthy disruption would mean severe shortages and price increases, with companies needing to rethink their supply chains.

Best source: Paperjam
Cargolux among Best Freighter Operator finalists

Cargolux Airlines International has been selected among the Best Freighter Operator finalists at this year's Air Cargo News awards. The winners will be revealed on April 24 at an event at the Runnymede on Thames Hotel, near Heathrow Airport in the UK.

Best source: Air Cargo News
AI, digitalisation on the eXplore agenda

The Luxembourg Centre for Logistics & Supply Chain Management is holding its annual eXplore conference on March 10. Topics on the agenda include supply chain transparency, AI innovation and policy, deep learning and forecasting, and the digitalisation of operations.

Best source: University of Luxembourg
Luxembourg hosts event for transport and mobility start-ups

Innovative international transport and mobility start-ups will present new opportunities, products and business models at the fourth C4L International Logistics & Mobility Start-ups Luxembourg Matchmaking event on March 12. Register for the event, which is being hosted by the Ministry of Transport and sponsored by Cargolux and EY, vote for the best start-up pitch, discover fresh ideas, and find a new partner company or service provider.

Best source: Cluster for Logistics
Digital Logistics
Hapag-Lloyd to roll out reefer monitoring tool

Hapag-Lloyd has unveiled its Hapag-Lloyd Live real-time monitoring tool for reefer containers. The solution will initially be rolled out to selected customers, with the company then fitting out some 100,000 containers.

Best source: Port Technology
Perishables & Pharma

Cargolux passes pharma audit

Cargolux Airlines has passed its good distribution practice (GDP) renewal audit covering its pharma processes. The GDP renewal recognises the company as an all-cargo carrier with a fleet of purpose-built freighters, providing four distinct temperature zones.

Best source: Stat Times
Luxembourg cold chain on show at Fruit Logistica

Luxembourg perishables expertise was on display at the recent Fruit Logistica trade fair in Berlin via the Fresh Hub Luxembourg pavilion, organised by the Luxembourg Chamber of Commerce, Luxembourg Ministry of Economy and Cluster for Logistics Luxembourg. The grand duchy’s Arthur Welter, Grosbusch, Luxembourg Airport and Cargolux were represented at the pavilion.

Best source: Cluster for Logistics
Union Investment buys Logistrial Real Estate

Union Investment has acquired German logistics real estate company Logistrial Real Estate from Garbe Industrial Real Estate for €800m. The deal includes 13 existing properties and six development projects in Austria, Germany, France and the Netherlands.

Best source: Investment & Pensions Europe Real Assets
Encore+ fund gets Dutch asset

LaSalle Investment Management’s Encore+ European real estate fund has purchased the Bleiswijk Urban Logistics Center from ULP Bleiswijk B for an undisclosed amount. The centre, located north of Rotterdam, comprises 60,000 square metres and is currently let to a number of tenants.

Best source: Investment & Pensions Europe Real Assets
RLI purchases German logistics project

RLI Investors has acquired a logistics project in Hanover for its RLI Logistics Fund - Germany II. The 16,300-square-metre development, already fully let on a long-term lease, is scheduled for completion in the fourth quarter of this year.

Best source: Property Funds World
Regulation & Procedures

Northern Europe exposed to high Brexit risk

Germany, the Netherlands and France are the markets most likely to be affected by Brexit given the levels of trade between those economies and the UK, according to IHS Markit. Germany is a leading export destination for the UK (10.6% of total annual value), ahead of the Netherlands (8.8%), and France (7.3%). IHS Markit warns that a full adjustment to Brexit will take years.

Best source: Hellenic Shipping News
New food, animal and plant controls at Luxembourg’s borders

The Luxembourg government is implementing new EU minimum requirement regulations at border control posts for the application of food and feed law, rules on animal health and welfare, plant health and plant protection products. The regulations include detailed rules on minimum requirements for infrastructure, equipment and the documentation of border control posts and control points.

Best source: Luxembourg Government (in French)
Express & eCommerce
Global air freight remains weak: Cargolux’s Straus

The global air freight market is hampered by overcapacity and set to remain weak with ongoing price pressure, Cargolux chief financial officer Maxim Straus told the Airline Economics Growth Frontiers conference. He added that many regions are shaky, and pointed to weakness in South America and Hong Kong.

Best source: Air Cargo News
Cargolux slashes China, Taiwan services due to coronavirus

Cargolux has significantly reduced its flight operations to and from China and Taiwan due to the coronavirus outbreak. The move affects 23 weekly flights to China and four to Taiwan.

Best source: Paperjam (in French)
Airlines suspend, reschedule China flights

Lufthansa, Air Canada, British Airways have joined the three US majors in suspending or rescheduling flights to mainland China due to the coronavirus outbreak. The immediate impact of the suspensions is on belly-freight services on passenger flights.

Best source: Air Cargo News
Record passenger numbers at Luxembourg Airport in 2019

A record 4.4 million passengers passed through Luxembourg Airport in 2019, up 9% from the previous year, including 430,000 passengers during the busiest month, July. Operating company LuxAirport says the growth was down in part to the launch of new routes, including services to Alam in Egypt, Budapest, Edinburgh, Split and Stockholm. Luxair has already announced new routes to Montpellier and Nantes in France and to Brindisi and Florence in Italy starting this year.

Best source: Wort (in German)
See also: L'essentiel (in French)
Luxair reports slight rise in passengers but cargo handling decline in 2019

National airline Luxair and its package tourism business LuxairTours saw a 0.73% increase in passenger numbers last year to 2,148,098, compared with an increase of nearly 10% the previous year for the group, which accounts for around half the flights at Luxembourg airport. The volume of freight handled by LuxairCargo declined by 6.6% from 956,938 to 893,090 tonnes, after what Luxair says were exceptional years in 2017 and 2018.

Best source: Wort (in German)
See also: Luxair
New intermodal rail route launched from Bettembourg-Dudelange to Kiel

LKW Walter, Stena Line, the Port of Kiel and CFL Multimodal have launched a new intermodal goods transportation service connecting Bettembourg-Dudelange with Kiel on Germany's Baltic coast, offering three round trips per week for cranable trailers and containers. The service, which will connect existing train routes with ferry lines, will enable cargo from up to 10,000 trucks to be transferred to rail, saving around 11,000 tonnes of carbon emissions a year.

Best source: Global Railway Review
See also: Paperjam (in French)
Schiphol freight volumes down 9%

Total cargo volumes at Schiphol Airport declined 9% year-on-year in 2019 to 1.6m tonnes due to reduced freighter flights and a weakening global air cargo market. The airport currently has a slot shortage, requiring some freighter operators to switch to other airports.

Best source: Air Cargo News
Maritime & Waterways

Port of Hamburg container, intermodal traffic rises

The Port of Hamburg handled 7.6m TEU at its container terminals in 2019, up 3.3% on the previous year’s 7.3m. The port’s intermodal activities increased 5.7% to almost 1.6m TEU.

Best source: Stat Times
Port of Hamburg finishes first stage of Elbe widening

The Port of Hamburg has completed the first phase of its Elbe widening initiative to enable vessels of a combined length of up to 98 metres to pass. The next stage of the project for widening the 3km section is expected to be completed by mid-2020.

Best source: Ship Technology
French HAROPA ports traffic down 5%

The HAROPA ports grouping of Le Havre, Rouen and Paris handled 90m tonnes of traffic in 2019, down 5% on 2018. The decline was due to lower volumes of crude oil, refined products and coal.

Best source: Port Technology
Port of Rotterdam volumes stagnant after slow second half

The Port of Rotterdam processed 469m tonnes in 2019, up just 0.1% on the previous year. The authority said the port had a good start in the first half of the year, but container transshipment was almost negligible during the second half.

Best source: Port Technology
Green Logistics
EIB approves almost €1bn for sustainable transport in Europe

The European Investment Bank has approved €983m in sustainable transport projects. Initiatives include the expansion of maritime and rail freight capacity on routes across Europe, as well as the upgrade of urban and regional rail links in Denmark, Germany, Italy and Poland.

Best source: Platts
Hapag-Lloyd tests low-sulphur, low-CO2 fuel

Hapag-Lloyd is trialling a B20 fuel – a combination of low-sulphur fuel oil and bio-diesel based on cooking oil – on its Montreal Express vessel out of Rotterdam for Canada. The company says B20 has a low sulphur content and produces lower CO2 emissions.

Best source: Port Technology
UPS orders commercial EVs for European deployment

UPS has taken a stake in UK-based commercial electric vehicle maker Arrival and plans to deploy thousands of the company’s purpose-built electric delivery vehicles across Europe and North America. UPS has placed an initial order for 10,000 EVs, with delivery slated for 2020 to 2024, and retains the option for an additional order of 10,000 units during this period.

Best source: InsideEVs

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