Lufthansa Cargo intensifies partnerships in China

Lufthansa Cargo is intensifying key strategic partnerships in China: Ashwin Bhat, CEO, Lufthansa Cargo, signed cooperation agreements with Shanghai Airport Authorities, Air China Cargo and China Postal Express & Logistics during his recent trip.

"China's rapid growth has transformed it into a global economic powerhouse and is now one of the most important growth markets in the airfreight industry. With production hubs specialising in high tech-commodities, the country has enormous potential for the air freight sector. The booming Chinese e-commerce sector and the increasing importance of cross-border trade from China provide additional growth opportunities in the airfreight industry," says an official release from Lufthansa Cargo.

The memorandum of understanding (MoU) between Shanghai Airport Authority and Lufthansa Cargo aims to establish a framework to further develop cooperation in focused areas, enhancing operational efficiencies, and improving customer experiences through innovative solutions and shared expertise. "It also recognises the strategic goal of jointly developing Shanghai Pudong Airport into the world's most competitive Asia-Pacific core hub and actively exploring ways to deepen the partnership."

Feng Xin, CEO, Shanghai Airport Authority says: "The last 25 years of partnership through our joint venture have yielded excellent results for both parties. The MoU marks the beginning of our cooperation journey, and we look forward to even closer collaboration in the years ahead."

Ashwin Bhat, CEO, Lufthansa Cargo adds: "The MoU represents a significant milestone in our collaboration and sets the stage for a deeper and more fruitful partnership in the future. Shanghai is the biggest freight hub for Lufthansa Cargo, next to our hub in Frankfurt, and the MoU gives us the confidence and commitment to further contribute to business excellence in this strategically important market."

Shanghai Municipal Government supports Lufthansa Cargo
Bhat also met Hua Yuan, Vice Mayor, Shanghai with a delegation of Lufthansa Cargo to report on the industry status and strategic direction of Lufthansa Cargo in Shanghai and China, the release added. "They discussed the sustainability and digital development of aviation logistics, the development of cross-border e-commerce and the strengthening of further cooperation with local enterprises. During the meeting, the Shanghai government expressed very positive and supportive signals for the cooperation with Lufthansa Cargo."

Air China Cargo, Lufthansa Cargo sign MoU
Air China Cargo and Lufthansa Cargo signed a MoU during a ceremony in Shanghai "that will take the long-lasting partnership of both carriers to the next level," the release added.

Bhat says: "Lufthansa Cargo is pleased to manifest the long-standing relationship with Air China Cargo with this MoU. The relationship will improve our service offerings to our customers since we share a common commitment to take the cooperation to the next level."

Jun Li, CEO, Air China Cargo adds: "The cooperation between the two parties will further stabilise the logistics corridor between China and Germany and will provide customers with more choices and solutions.”

Lufthansa Cargo, China Postal Express announce cooperation
Lufthansa Cargo and China Postal Express & Logistics (CPEL) recently announced a cooperation framework aimed at deepening their partnership and promoting mutual development. "Within a MoU, the two parties have outlined their intentions to innovate and collaborate in various areas over the next five years."

Lin Zejian, Deputy General Manager, CPEL says: "China Postal Express & Logistics and Lufthansa Cargo have a history of more than ten years of cooperation. The new strategic cooperation is not only conducive to consolidating the existing business cooperation between the two sides, but also can develop more commercial value in new business fields. We look forward to the orderly and efficient development of various businesses under the new strategic cooperation framework."

Bhat adds: "We are excited to continue and deepen our cooperation with China Postal Express & Logistics, and look forward to achieving new levels of collaboration and innovation in the coming years. This strategic cooperation framework represents our commitment to mutual development and growth in the industry."

Lufthansa Cargo entered the Chinese market in the late 1990s and opened a freight service connecting Shanghai and Frankfurt in 1997. Since then, it has successively opened multiple cargo flight points in Beijing, Chengdu, Guangzhou, Hong Kong and Taipei. In 2024, it added one new route to Frankfurt from Zhengzhou and Shenzhen, respectively.

In 1999, Lufthansa Cargo established a joint venture with Shanghai Airport Group, known as Shanghai Pudong International Airport Cargo Terminal (PACTL). PACTL's cumulative cargo tonnage in 2023 was approximately 1.6 million tonnes, the release added.