Lufthansa Cargo is looking to transform Frankfurt Airport as a major e-commerce hub as it announced efforts to focus on efficient sustainability, digitalization and e-commerce amid current challenges in the air freight industry.

The German cargo airline said it is poised to strengthen the e-commerce business at Frankfurt Airport as it recently presented its ambitious plans for the gateway, which is Europe's busiest air freight hub.

"In the future, the airport is to become one of the world's most important e-commerce hubs. Together with two subsidiaries — the logistics service provider heyworld and the customs clearance agency CB Customs Broker GmbH — Lufthansa Cargo is thus proactively driving forward the expansion of the eCommerce business at Frankfurt Airport," said Ashwin Bhat, chief executive officer of Lufthansa Cargo.

He noted that a decisive success factor for online retailing is the resilience and speed of the supply chain.

"We want to make Frankfurt a leading location in this segment by offering holistic solutions for shipping, customs clearance, and onward transport of eCommerce shipments," Bhat said.

In addition, full-service customs agency CB Customs Broker announced a partnership with handling expert GEORGI Handling.

To promote the eCommerce business in Frankfurt, both companies are creating a new eCommerce terminal in Cargo City South, which will be another important base for the Asian market.

"We are currently experiencing various upheavals within the airfreight industry. Sustainability, digitalization and booming online trade are playing a central role. In order to be able to master this, we are relying on decisive and dynamic action along with all stakeholders in the industry," Bhat said.

"This is the only way we can remain fit for the future and live up to our responsibility as one of the world's leading airfreight companies and enabling global business," the Lufthansa Cargo chief executive added.

Expansion of the intra-European route network

Lufthansa Cargo also signalled plans to expand its intra-European network. It has been serving destinations in the short- and medium-haul segment with A321F freighters for more than a year and put its third aircraft into service at the end of June.

A fourth freighter will join the fleet as of September.

Lufthansa Cargo noted that with the A321 fleet doubling in size to four this year, there are new opportunities for capacity and route network expansion, whether in the scheduled or charter business.

Currently, Lufthansa Cargo offers more than 50 weekly flights to 14 destinations, providing customers with a direct connection for their cargo to the hub in Frankfurt. The latest additions to the route network are Casablanca, Yerevan and Tunis.

Further adjustments and extensions to the flight schedule on short- and medium-haul routes associated with the fleet expansion are currently still being planned to connect various economy centres.

Lufthansa Cargo also noted some of its digitalization initiatives, including its partnership with Kuehne+Nagel on routes to Asia.

The carrier said a few weeks ago, it succeeded in transporting 100% general cargo by electronic air waybill as well as the digital accompanying documents between Germany and Hong Kong with Kuehne+Nagel.

This first purely "paperless route" is the starting signal for the introduction of "paperless corridors" for efficient and resource-conscious transports between Europe and Asia.

Lufthansa Cargo invests in sustainable measures

Lufthansa Cargo said it is equally ambitious in the area of sustainability: By 2030 at the latest, the company wants to halve its carbon footprint compared with 2019 in order to operate CO₂-neutral by 2050.

The air freight carrier said it already achieved the 2% regulation for the use of SAF stipulated in the EU ReFuel Aviation Regulation — a binding quota of renewable fuels for aviation, where at least 2% SAF must be used by 2025, and at least 6% by 2030.

Compared to fossil fuels, SAF reduces CO₂ emissions by up to 80%

"Today, Lufthansa Cargo is already achieving the first mark of two percent: In 2022, the SAF share in the fuel consumption of Lufthansa Cargo freighter aircraft was already 2.1 percent," Bhat said.

In addition to renewable fuels, the company is also focusing on continuous fleet modernization, fuel efficiency and digitalization.

Nicole Mies, head of communication and corporate responsibility at Lufthansa Cargo, noted that the airline is also seeing great potential in AI-based applications and have already integrated them into its services.

"From eBooking to eTracking, we now offer our customers extensive options along the transport chain. If we want to sustainably improve the industry's carbon footprint, we must use every opportunity to further reduce our CO₂ emissions," Mies said.