Lufthansa Cargo is strengthening key partnerships in China by signing three Memorandum of Understandings (MoUs) with Shanghai Airport Authorities, Air China Cargo, and China Postal Express & Logistics.
On November 6, 2024, the cargo carrier shared a press release stating that China’s rapid growth has transformed the country into a “global economic powerhouse” with enormous potential for growth in the airfreight industry.
Due to this Lufthansa Cargo announced it has enhanced its partnership with the Shanghai Airport Authority by signing an MoU. The Shanghai Airport Authority, a state-owned entity of the Shanghai Municipal Government, manages both Pudong (PVG) and Hongqiao (SHA) airports in Shanghai, China.
According to the press release, the primary goal of the MoU is to jointly develop Shanghai Pudong Airport into the world’s most competitive Asia-Pacific core hub. Additionally, the agreement aims to “enhance operational efficiencies and improve customer experiences”.
“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,” said Ashwin Bhat, CEO of Lufthansa Cargo.
Lufthansa Cargo formed a partnership with Shanghai Airport Group in 1999. Over the past 25 years, Shanghai Airport Group has offered various services such as warehousing, customs clearance, consolidation, loading and unloading services covering the entire logistics chain.
Lufthansa Cargo signed its second MoU with Air China Cargo, the all-cargo subsidiary of Air China, at a ceremony in Shanghai in October 2024. This MoU aims to “improve their service offerings to customers,” Bhat added.
According to Jun Li, Air China Cargo CEO, both companies aim to work closely to “further stabilize the logistics corridor between China and Germany.”
Lufthansa Cargo and China Postal Express & Logistics, a subsidiary of China Post, have also recently formed a strategic partnership. Both companies said they are committed to enhancing cooperation in “joint innovation and development, capacity and transport offer, improving settlement efficiency, digitalization, global cooperation, and environmentally sustainable development.”
Lufthansa Cargo began operations in China in the late 1990s, launching a freight service between Shanghai and Frankfurt in 1997. Over the years, it has opened several cargo flight routes in Beijing, Chengdu, Guangzhou, Hong Kong, and Taipei. In 2024, the company introduced a new route to Frankfurt from Zhengzhou and Shenzhen.