Lufthansa Cargo LCCevo ALPHA phase goes live

The ALPHA phase of Lufthansa Cargo's €600m LCCevo air cargo project at Frankfurt Airport has commenced operations. With work having begun in 2023, the carrier is renovating its entire 80,000 sq m Frankfurt cargo site, aiming to turn the Lufthansa Cargo Center (LCC) into Europe's most modern air cargo hub by 2030 - and continuing to operate 24/7 during the process. The new infrastructure houses intelligent material flow and conveyor systems that seamlessly connect all process steps, ensuring a significantly more efficient flow of goods. Facilities include a fully automated, 42 m tall high-bay warehouse with nearly 3,000 storage slots for large cargo pallets and a state-of-the-art automated pallet warehouse for temperature- sensitive and specialised shipments. The high-bay warehouse alone will enable more than 300 storage and retrieval operations per hour, doubling capacity. "With the launch of phase ALPHA, a vision is becoming a reality," said Ashwin Bhat, Lufthansa Cargo chief executive. "LCCevo is one of the most significant investments in our company's history and a clear commitment to Frankfurt as an air cargo hub. Lufthansa Cargo handles nearly every second metric ton of air cargo at Frankfurt Airport. That is why we are making targeted investments in our hub and its long-term performance capabilities. "With intelligent cargo flows, state-of-the-art infrastructure, and automated processes, we are creating the conditions necessary to continue meeting the demands of global markets. In doing so, we are strengthening our and Germany's competitiveness, laying the groundwork for further growth." The BRAVO and CHARLIE phases of construction scheduled for the coming years up to 2030 will include sustainability elements such as the installation of photovoltaic systems on approximately 19,000 sq m of roof space as well as intelligent heat recovery systems and green roofs. Kaweh Mansoori, Hessian Minister for Economic Affairs and Transport and Deputy Minister- President, said the LCCevo project "strengthens the competitiveness of our aviation hub, accelerates processes, and creates the conditions for Frankfurt to remain one of the world's most important air cargo hubs in the future". State Secretary at the Federal Ministry of Transport Stefan Schnorr added: "Air freight is indispensable for many key industries in Germany, from pharmaceuticals and mechanical engineering to future-oriented sectors such as semiconductors. For our companies, reliable, secure, and fast access to international markets is of crucial importance. [...] Projects like LCCevo strengthen the performance of air cargo and, at the same time, the competitiveness of our country."

Carriers eye major rate hikes for July, even as port congestion strands 3.4m teu

Congestion in European and Asian ports has kept 3.4m teu of box ship capacity queued, supporting long-haul freight rates as liner operators prepare to hike rates again in July. NNR Global Logistics said in Shanghai, the world's busiest port, strong demand for solar panels and the early peak season had resulted in delays of four to five days. Schedule reliability in Singapore, the second busiest port, is "sub-optimal", due to disruptions across global shipping networks, and in Taiwan, congestion and overbooking in Taipei and Keelung ports increased as exporters front-loaded to beat the expiry of the 10% global US tariffs on 24 July. NNR said: "Cargo space remains extremely limited, with vessel waiting times extending to between three and seven days." India's Ligi Logistics said: "Space availability is becoming increasingly constrained across several export corridors. Nhava Sheva Port congestion continues worsening, with ongoing vessel bunching, rail delays, trucking shortages, terminal congestion, and yard density pressure. "Schedule reliability remains below normal industry standards, requiring additional shipment planning buffers. Carriers continue implementing short validity periods on spot quotations due to volatile market conditions." In Europe, Antwerp continues to work through accumulated backlogs, while Hamburg faces infrastructure constraints. The Kohlbrand Bridge bottleneck affects hinterland transportation, while rail access to the Altenwerder Container Terminal is still suspended. Linerlytica says in its report today that Asia-North Europe capacity remains very tight, exacerbated by Maersk Line's downsizing of its NE3/AE3 service that cut 5,000 teu in weekly capacity. The consultancy said: "Capacity in July could also be affected by more ad hoc blank sailings due to worsening port congestion across both Asian and European ports over the past week even though carriers are planning full sailing schedules for July." On Friday, the Shanghai Containerised Freight Index showed the Shanghai-North Europe rate rose 3% from the previous week, to $3,158 per teu. Linerlytica added: "The positive momentum in the container market continues with the mid-June rate hikes sticking without rollbacks in the strongest rate ascent since the Red Sea diversions started at the end of 2023. "Carriers are gearing for another major rate hike in July, with increases as high as $5,000 per 40ft on certain routes. Cargo demand is now clearly outpacing the availability of vessel slots with the peak season in full swing."

Challenge Handling hires Schaefer as chief executive

Challenge Handling has appointed Detlef Schaefer as chief executive to focus on strengthening business relationships. The Challenge Group-owned handling company said in a LinkedIn post on 24 June that Schaefer has extensive international experience across aviation, airport operations, and ground handling. Throughout his career, he has built a strong track record of operational leadership, strategic development, and delivering results in complex aviation environments, said Challenge Handling. "As he begins his journey with the business, Detlef's immediate focus will be on building strong alignment with his teams, customers, partners, regulatory authorities, the airport community, and stakeholders across the wider Challenge Group," the company commented "My first priority will be to get to know the people at Challenge Handling and our key stakeholders, understand our operations, and ensure we are aligned around clear operational, strategic and financial priorities," stated Schaefer. "Together, we will continue building a strong foundation for the future while delivering the service excellence our customers expect." Detlef will work closely with the Group's leadership team to support the continued development of Challenge Handling's operations in Liège and help shape the next phase of growth for the business, said the business. To ensure a seamless transition, David Alexis will continue to support the business through a transition period until the end of November. During this period, Alexis and Schaefer will work closely together to ensure continuity for our customers, employees, partners, regulatory authorities and all stakeholders. Challenge Handling added that Alexis has played a key role in the development and growth of Challenge Handling over the past two decades and will remain actively involved in supporting the successful transfer of responsibilities and the continued success of the business