DLH Massages An EMO Meet In Berlin

Birds of a feather—we learned last week that both Lufthansa and EMO Trans utilize interpretations of the crane in their logos. Here pictured in Berlin (L to R) Stefan Ritter, partner and managing director ocean freight based at EMO Solingen, Thomas Klinkhammer, EMO TRANS, partner, based in Düsseldorf, Dr. Andreas Otto Lufthansa Cargo and Bernhard Stock, EMO Board of Directors, based in Frankfurt.

     During a time when airlines are authoring closer collaboration with their partners to offset shifting markets, corporate takeovers and other changes, reaction to an overture from Lufthansa Cargo to leading world logistics specialist EMO TRANS in Berlin last week was interesting.
     By way of prioritizing these things Lufthansa Cargo has traditionally created a kind of pecking order, by placing Globals at the top of the priority heap, followed by the Business Partners, and shortly after that, everybody else.
     You might say when it comes to whom to hug amiably and whom to only shake hands with, the lines, like very proper German behavior, are clearly drawn.
     So far for the airline it has worked out pretty well with about 50 percent of LH Cargo’s revenues derived from the mammoth players and 30 percent from mid-sized agents.
     So where is /was there, a problem?
     Some of the smaller contenders we talk to have in the past complained about a lack of attention and care paid to them by the German cargo carrier.
     But to hear it told now, all of that is a thing of the past since LH Cargo shifted its policy last year by promising to pay more attention to its 30 so-called Business Partners and other relationships, big and small around the world.
     This important and for some forwarders decisive new facet of the airline’s worldwide strategy was clearly emphasized by VP Marketing & Sales, Andreas Otto at the 6th EMO-TRANS Global Network Meeting held in Berlin last week.
     Expect that as Cargo Network Services (CNS) meets in San Diego starting today, the following points will also be driven home by Carsten Spohr, the top executive at Lufthansa Cargo, who is situate as you read this at Rancho Bernardo with all kinds of presentations and one-on-one meetings underway.
     For EMO TRANS that entrepreneurial go-go enterprise that is redrawing logistics in a number of markets, Dr. Otto referred to the airline’s traditional symbol, the crane, and the majestic bird’s typical characteristics such as partnership focused behavior.
     “The crane is faithful, reliable and has a caring nature, and also adapts as conditions shift.”
     Is this a kinder, gentler Lufthansa Cargo?
     Maybe.
     Elevating the crane by example rather than just offering some customers a take it or leave it bird, does make sense.
     But clearly in coming out with some plain talk, Lufthansa Cargo is trying to elevate its business in popular imagination.
     Certainly a compelling driver for change could lie in the fact that some of Lufthansa’s preferred Globals don’t exist anymore.
     Take Exel, which has been swallowed by Deutsche Post/DHL or BAX Global that now is part of Deutsche Bahn’s logistics arm Schenker.
     No doubt as this group thins out one by one, LH Cargo has decided to approach the Buzz folks in order to acquire additional tonnage to up the payloads.
     “What do the crane’s characteristics mean for our Business Partnership Program?” Andreas asked the EMO audience.
     “Business Partners enjoy area-wide key account status, competitive pricing, mutual regional and target based incentives, permanent quality control of all shipments and the global recognition and support by Lufthansa Cargo of the Business Partner’s brand.”
     In fact, the uplifting of the Business Partner’s status is clearly demonstrated by naming key people for each of the 30 companies.
     Stuttgart-based Katrin Schneider, who is in charge of all global EMO-TRANS transactions, whether imports or exports, underlined some points just in case.
     “It is this personal contact that is essential in our daily communication to manage shipments as smoothly and effectively as possible from the shippers to the consignees.”
     Bernhard Stock, from EMO’s Board of Directors agreed.
     EMO USA handed over 30 percent more tonnage to LH Cargo in 2007 Q1 than in Q1 of 2006.
     “We are solely talking about EMO-TRANS in the U.S. and comparing only the outcome of the first three months year-on-year.
     “But this result clearly demonstrates that our Business Partnership Program has already caused some positive reactions by the participating forwarding agents,” Dr. Otto declared.
     But class distinction once implied is not easily forgotten.
     At the EMO Trans meeting one vocalized wish still unfulfilled, despite the friendly and familiar atmosphere between carrier and Buzz partner was finally asked about, out loud:
     “Is there a chance that we are credited with the status of a Global Partner?” Bernhard Stock asked his guest.
     “It is not a question of status but of support and good working relationship that fills a program with life,” replied Herr Otto.
     But Andreas did underscore his “sort of” response by leaving the elevated status issue open to some hope:
     “By looking at your revenues and comparing them with some leading logistics firms I see no realistic chance. “But if you team up and form an alliance of middle-sized agents then it might be a completely new ballgame.”
     The bilateral talks between Lufthansa Cargo and EMO-TRANS will go on in search for even closer ties.
     Suffice to say, as long as agents continue to be asked to pitch additional business at carriers, they can and will expect more in return.
     Lufthansa Cargo proves the point out on the hustings to say, at long last somebody is listening.
     “It was a necessary, constructive and perspective meeting with Lufthansa Cargo which I’m sure will pay off for both sides very soon,” concluded Jo Frigger, Chairman & CEO of EMO-TRANS USA.
Heiner Siegmund /Geoffrey Arend