Germany's Air Cargo Sector Faces Global Challenges

Germany's aviation sector, a global logistics hub, is facing pressure to modernize. While ready, the lack of a comprehensive digitalization strategy is hindering progress and threatening its competitive position.

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Photo: Frank Hoermann/AP/Ritzau Scanpix

Known for its pivotal role in European and global logistics, Germany's hubs - including Frankfurt, Munich, Cologne, and Leipzig - remain central to international freight operations. However, the industry is facing increasing pressure to modernize its processes and adopt efficiency-enhancing solutions.

Although individual elements of the supply chain - such as the e-Air Waybill (e-AWB), slot booking platforms, and truck coordination - have seen progress, a comprehensive, integrated digital ecosystem has yet to materialize. Without a unified strategy, Germany risks falling behind in an increasingly competitive air cargo market.

Mr. Marc Oedekoven, Chairman of the Board of Logistics Alliance Germany, noted that the industry is more ready than ever: "The industry is ready to go for digitalisation, way more ready than it was years and decades ago."

Reflecting on past initiatives like Cargo 2000, he noted that although progress was made, a consistent, global project was missing: "There is not really a consistent, holistic digitalisation standard or major global project."

The Need for Pressure and a Holistic View

Mr. Oedekoven emphasized the importance of hard deadlines to propel the industry forward. "Deadlines will help to push everyone in the supply chain to adopt digitalisation. Without them, we risk stagnation."

However, he also admitted that past goals were often not met. "Did they help in the past? I don’t think so."

He stressed that the focus must go beyond airport-to-airport activities to include the broader logistics chain, from factory pickup to final delivery. "The entire process - from documentation, to trucking, to delivery - needs to be included in the digitalisation of the full supply chain. And yes, there will be challenges, which could be overcome easily with the technology we have today."

The vision of a completely paperless industry is bold. Oedekoven even suggested that the air waybill itself might be an obsolete concept. "No airfreight carrier in this world is keen on having an airway bill. They need the relevant data to process the goods, finance, and logistics - but not the document itself.”

Germany's Role: From Infrastructure to Exporting Knowledge

Germany has long been recognized as an international freight hub, with Frankfurt in the lead. However, Mr. Oedekoven believes the country must do more than just maintain its infrastructure. "We see ourselves as facilitators of digitalisation in Germany. We collect knowledge from all over the world and distribute it among our association members. We are not lobbyists; we are here to promote logistics made in Germany and Europe."

He emphasized the importance of knowledge sharing as a tool to strengthen the industry. "When we return from international delegations - to the USA, Silicon Valley, China, or Japan - and share knowledge, our members are curious. They want to learn from others’ approaches, from Amazon, for example. That motivates people to go forward."

Mr. Oedekoven described the alliance's approach as a team effort. "In a team, you have people striving to be the best. That pulls the entire team to the highest level possible. Innovation, curiosity, and even a little healthy fear of falling behind are all part of the process."

Globalization, Resilience, and Regionalization

Despite the current geopolitical uncertainties, Mr. Oedekoven remains optimistic about globalization. "It’s too big to fail. We have gone too far to turn back, and we should not turn back. There are too many advantages to global trade."

He noted that volatility is not new. "We have seen natural disasters, economic crises, September 11. and logistics has always recovered. The freight will always find its way, and logistics will always be the backbone of modern economies."

At the same time, the trends of regionalization and nearshoring are becoming more prominent. "Sustainability and fuel costs are driving some of these shifts," he explained.

However, Germany's strength lies not only in physical logistics but also in knowledge. "We have built up expertise in logistics processes, digitalisation, and supply chain management. That is something we can export globally, whether to Africa or other emerging markets."

He also warned that logistics companies must always adapt, balancing global hubs with niche market opportunities. "Big players need to be vigilant about markets, products, and regions. Smaller and medium-sized companies often stick to existing traffic and focus on their niches. There will be opportunities if companies are ready to find them."

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