News / Lufthansa Cargo strengthens 'key strategic partnerships' in China

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Lufthansa Cargo has made a big bet on China: it has signed agreements with Shanghai Airport Authority, Air China Cargo and China Postal Express & Logistics. 

The German carrier’s interest in China has been building for some time – so far in 2024 its capacity to the country has grown 45% over 2023, and it has launched new routes to Zhengzhou and Shenzhen. 

Lufthansa Cargo explained: “China’s rapid growth has transformed it into a global economic powerhouse. and it is now one of the most important growth markets in the airfreight industry.  

“With production hubs specialising in hi-tech-commodities, the country has enormous potential for the airfreight sector. The booming Chinese e-commerce sector and the increasing importance of cross-border trade from China provide additional growth opportunities in the airfreight industry. Against this backdrop, Lufthansa Cargo is intensifying key strategic partnerships in China.” 

The carrier has signed an MoU with Shanghai Airport Authority to look at further cooperation, such as operational efficiency. It also said it recognised the airport’s aim to become the most competitive Asia-Pacific core hub, and would look to help it develop. 

“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 Lufthansa Cargo CEO Ashwin Bhat. 

He also met with the Shanghai municipal government to discuss sustainability, ecommerce and deepening cooperation with local businesses. Vice-mayor Hua Yuan said the pair would jointly boost the digital integration of China and Germany’s Customs. 

“Lufthansa Cargo is encouraged to further increase investment and business layout in Shanghai, deepen transformation and cooperation with Chinese related enterprises in the fields of aviation digitisation, intelligence and greening…” 

Lufthansa also signed an MoU with Air China Cargo, which will see them work together to improve service offerings and strengthen the tradelane. 

And it outlined a five-year partnership with China Postal Express & Logistics Co to develop capacity, improve “settlement efficiency” as well as digitalisation and sustainability. 

Lufthansa is not alone in eyeing the Chinese market with excitement. Bulgaria’s Compass Cargo Airlines has announced it will use its single 747-400F to connect Liege, via Sofia, to Zhengzhou. It secured traffic rights for Zhengzhou, Shanghai and Shenzhen in March. 

In other Lufthansa news, the carrier has signed a ‘remedy package’ to ensure final approval of its deal to buy an initial 41% stake in Italy’s ITA Airways.