For space travel, a nighttime operation

Strictly confidential: in August 2020, Militzer & Münch transported a component for a launch vehicle. The customer was a company from the private space sector. The logistics service provider transported the oversized cargo by truck and by sea from Germany to North America.

“The component was developed by one of the largest suppliers to the European Space Program,” says Marco Fischer, Operations Manager, Sea Freight & Project Logistics at Militzer & Münch. “It is intended for a launch vehicle that can be partially reused – which is not the case with conventional rockets. Thus, the component contains state-of-the-art technology that is strictly confidential.” To prevent industrial espionage, the Militzer & Münch team had to make sure the box was not opened and its contents were not photographed.

The transport of the valuable cargo started by truck in southern Germany. From a port in northern Germany, the cargo was shipped to the port of destination on the east coast of North America. There, a North American freight forwarding company took over the last leg of the transport to the end customer.

With detours to the destination

The biggest challenge was the dimensions of the component. The diameter of the cargo was over five meters and thus oversized. Such loads not only require numerous permits, in Germany, they can also only be transported at night. Plus, in the end, the route originally planned for the transport was unsuitable, as two construction sites caused the roadway to be only three to four meters wide in some areas. “We therefore had to accept a detour of several hundred kilometers,” says Marco Fischer.

 


Through Germany, escorted by the police

In order to ensure safety, police escort was mandatory along parts of the route. Several groups of police vehicles with specially trained and equipped police officers accompanied the truck to guarantee smooth transport to the port in northern Germany.

“From the North German port, we loaded the component onto a 20-foot flat rack container and secured it,” explains Marco Fischer. “Afterwards, the freight had to be transported to the seaport terminal by barge, i.e. on board a boat without its own drive, as the terminal is not accessible for trucks. Only then were we able to load the cargo onto a container ship.”

 

“The component contains state-of-the-art technology that is strictly confidential.”

Marco Fischer
Project Logistics Sea Freight at Militzer & Münch

 

Special test

Before transport, Militzer & Münch had a check carried out to determine how best to store and secure the oversized and valuable cargo – and whether it could be taken on board the selected container carrier at all. To this aim, the team contacted a so-called ‘Special Cargo Desk’ – loading experts such as former ship’s captains, who were presented with pictures of the cargo, technical drawings, and stowage plans. “Only when the Special Cargo Desk gives the okay, can the cargo be loaded,” says Marco Fischer.

The right timing

Police escort at night, unexpected obstacles, and complex regulations that have to be complied with – such factors must be taken into account and precisely coordinated before a transport of this kind can even start. “With projects like this, timing is key,” explains Marco Fischer. “And we are proud that our team, due to good cooperation and lots of experience, ensured that the cargo arrived safely at the North American East Coast.”

A factory at sea

Transporting an entire factory plant by sea from Belgium to India is an unusual project even for the experienced Militzer & Münch team in Germany. This is not least because many plant components are only dismantled shortly before transport, which leaves only a tight time slot to communicate the cargo’s dimensions and degree of soiling to the shipping company – and to determine whether the cargo is even allowed on board.

The demand for bentonite – a rock used in construction, as a food additive and in cosmetics, among other things – has risen sharply in India. A leading Indian supplier of the material has therefore decided to dismantle a factory – a so-called roller mill – in the Netherlands and rebuild it in India.

The project involves several steps: a freight forwarder brings the parts from the Netherlands to the port in Antwerp, Belgium. From there, Militzer & Münch takes over the transport by sea to the port of destination. The logistics service provider transports most of the plant components to Mundra, India. Several shipments are necessary to transport the entire factory. The project started in August 2020.

Short term solutions

„Under normal circumstances, transports of this kind are no big deal for us,“ says Marco Fischer, Operations Manager, Sea Freight & Project Logistics at Militzer & Münch. „However, many of the components are only dismantled shortly before they are carted off.“ This is why there are often spontaneous adjustments to the size and weight of the cargo – and suitable solutions have to be found quickly. The Militzer & Münch team therefore maintains close contact with the shipping company at all times in order to be able to communicate any changes as quickly as possible.

The parts are up to 4.2 meters wide and 3.8 meters high. This makes them ‘out-of-gauge’, i.e. they exceed the normal container dimensions. In order to use the capacities on board as efficiently as possible, containers are precisely matched to each other during loading. The weight of the containers also plays a decisive role in loading. Heavy containers are stored in the lower part of the container vessel to ensure stability. “Space on the ships is limited, and this type of cargo is usually not transported in standard containers,” explains Marco Fischer. “There’s a lot of information we only receive at very short notice. It is therefore no easy task to register the containers with the shipping company in good time and get them stowed on board.”

“The ship’s captain has the option of rejecting cargo if he thinks it is too dirty.”

Marco Fischer
Project Logistics Sea Freight at Militzer & Münch

A (not so) clean solution

Another challenge for the Militzer & Münch team: in some cases, the components of the plant are very dirty. Since the cargo is removed immediately after dismantling, there is no time to clean the factory parts. “The ship’s captain has the option of rejecting cargo if he thinks it is too dirty,” says Marco Fischer. “So far, none of our containers have been rejected, but if this should happen, we will find a solution for this as well.” Intensive communication with the shipping line and the customer, as well as the Militzer & Münch team’s in-depth know-how, have ensured that the first shipments have already been successfully handled to the customer’s full satisfaction.

In the starting blocks, headed south and east

Despite the corona crisis, the Swiss Militzer & Münch unit was able to achieve a number of successes. Among other things, the team signed a three-year contract with a major manufacturer of rolling stock. Militzer & Münch is in charge of transporting the manufacturer’s products to Poland.

In the past few months, Militzer & Münch Switzerland has strategically repositioned itself and defined additional business areas. As a result, order volume and sales have increased, which allowed the company to take on new employees and open a new location. The new office at Muttenz near Basel, operated by a staff of 16, offers sufficient space for further growth.

“The new business areas are the Middle East, Central Asia and the Caucasus, the Maghreb and the region of Central Eastern, South-Eastern and Eastern Europe,” says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia, Business Development Switzerland, M&M Militzer & Münch International Holding AG. “Especially in the Maghreb and in Central Eastern, South-Eastern and Eastern Europe, we have vastly increased our business volume. The decisive factor for this success: our team has a wealth of expertise, and each individual colleague assumes a great deal of responsibility. Moreover, the long-term partnerships we maintain with our sister companies in our target markets set us apart from the competition.”

These features convinced a big rolling stock manufacturer, who immediately commissioned the Militzer & Münch team in Switzerland with a transport project to Poland for a period of three years. The transport of the automotive parts started in May. “Further contracts have already been signed,” says Nikolaus Kohler. “We are to transport products for one of the leading Swiss retailers from this region. For another customer, we take care of the distribution of seeds and pesticides. Word has obviously got around in the shipping and loading industry in Switzerland that we are a specialist for customer-oriented solutions and niche markets – which makes the team and me very proud.”

A Happy encounter

He was at the right place at the right time: at a trade fair, an importer of Chinese laser cutting machines met Barbara Zablocka from Militzer & Münch – in the meantime, he has transported, with her help, already his 25th delivery to Poland.

The entrepreneur from the machine building industry was faced with a challenge two years ago: he wanted to import Chinese machinery to Poland, but had little experience in this field. When he participated in EXPO-SURFACE, the trade show for surface treatment systems, Barbara Zablocka, Business Development Manager, Militzer & Münch Poland, offered him a solution.

“The entrepreneur had already received an offer from another transport service provider”, says Barbara Zablocka. “It was cheaper than ours. But for the customer, the price was secondary. Due to the high value of the goods, it was important to him to get professional care.”

Intensifying Partnerships with China

Owing to the good cooperation with Militzer & Münch China and long years of experience on this trade lane, Barbara Zablocka and her team were able to provide comprehensive advice to the customer. In the end, they were awarded the contract.

“With transports from China, we cooperate closely with our local colleagues and with the German colleagues”, Barbara Zablocka says. “Our partners picked up the laser cutting machines in Qingdao, the East Chinese port.” From there, the team shipped the containers via sea freight to Gdynia on the Polish Baltic coast or – with destinations near the German-Polish border – to Hamburg. The last mile to the consignee, the machines are transported via truck.

“I am happy that the importer and I had the chance to talk at the trade show”, says Barbara Zablocka. “In the meantime, this has developed into very good cooperation. The customer is in good hands with us, and we are developing our existing partnerships on the China trade lane more and more intensively.” Until now, Barbara Zablocka and her team have already handled 25 imports from China for the customer, and they are planning more shipments.

Cell Phones in Flight Mode

Cell phones are regarded as dangerous goods – because of their batteries. This and more factors have to be taken into consideration when cell phones are transported via airfreight. No problem for Militzer & Münch: the Chinese Militzer & Münch unit handles time-sensitive transports to Russia, Eastern Europe and Central Asia for a leading cell phone manufacturer.

Since 2010, Militzer & Münch has been working with a leading cell phone manufacturer from China. “We transport cell phones and other telecommunication equipment from Shenzhen in China to Moscow and several other destinations in Eastern Europe and Central Asia”, says Andreas Löwenstein, Regional Managing Director Asia / Far East, M&M Militzer & Münch International Holding AG. “The customer regularly calls for tenders – in 2018, we were awarded the two-year contract again. Under this contract, we have so far transported a total weight of 800 tons.”

A Tight Time Frame

Apart from the Russian capital, destinations are Minsk (Belarus), Almaty (Kazakhstan), Bishkek (Kyrgyzstan), Dushanbe (Tajikistan), Tashkent (Uzbekistan), and Kyiv (Ukraine). But before the cell phones reach their destinations, the Militzer & Münch team has to master some challenges. “The customer only plans a very short turnaround time for every transport – from door to door, depending on the destination, between four and seven days”, says Andreas Löwenstein. “Our pledge to the customer is to adhere to this tight schedule.”

Another challenge is posed by the lithium batteries that are integrated in the cell phones. If lithium has contact with water for instance, this will trigger intense chemical reactions. The resulting heat build-up is so strong it might lead to fires and explosions.

Owing to these risks, lithium batteries are regarded as dangerous goods and may only be transported under strict conditions. Yet, even if prerequisites are met correctly, some airlines and airports don’t accept lithium batteries as freight. Militzer & Münch China handles a large part of the deliveries via Hong Kong Airport, where only a small number of flights offer the right conditions for these transports: one weekly connection to Moscow and two connections to Central Asia, via Istanbul and Baku.

Like Clockwork

“As this is a door-to-door contract, we do multi-modal transports”, says Andreas Löwenstein. “The goods are not only transported by air, but also by water, by rail and by road. The different phases of the transport must fit together like clockwork for the goods to arrive in time.”

The ten-year cooperation with the customer demonstrates that Militzer & Münch offers the right mix of knowhow, coordination and efficiency to meet even the highest customer demands.

For coffee lovers

Coffee is popular in Poland, and has become an export hit, too: After years of successful cooperation, one of the largest Polish coffee producers has opted for Militzer & Münch as his sole transport service provider.

For a long time, the producer had worked with different transport companies. Militzer & Münch, too, had won the company as a customer some years ago and delivered coffee all around the world. “With this project, our team is fully committed”, says Michał Styrylski, Manager of the Cracow branch, Militzer & Münch Poland. “And Pawel Twardokęs, our airfreight and sea freight director, keeps our customer posted on every process.” For each order, the team draws up customized schedules with flexible options to choose from.

Convinced in Every Respect

“Our customer soon realized that he can rely on us”, Michał Styrylski says. “From the first order on, we have always responded intensively to their needs.” After only a few months, the customer invited the Cracow team personally to gather information on additional Militzer & Münch services.

With responsibility, trust increased, too, and the team got more and more opportunities to handle transports. And one day, the producer awarded Militzer & Münch the contract for the biggest delivery so far: the team was to transport airfreight – a total weight of over 40 tons – from Poland to Japan, and mastered the challenge successfully.

“This convinced the coffee producer”, says Michał Styrylski. “At our next meeting, they informed us that they were going to work with us exclusively from now on. It confirms us in our daily commitment: of course, we get the goods to their destination in a fast and smooth way. But what counts is long-term commitment and good communication. We regularly ask our customers if there is anything we can do better, and thus, we both grow.”

The Militzer & Münch Poland team. From left: Szymon Marzyński (Operations), Marta Gęsiak (Operations) and Michał Styrylski (Branch Manager Cracow)

Freshly Polished

How do online retailers get the goods they sell? One of the largest international e-commerce corporations orders shoe polish, brushes and insoles from a popular Polish manufacturer – and Militzer & Münch was contracted to get the products across the Atlantic.

Three years ago, the Militzer & Münch Poland team was given the first chance to work for a big international online retailer via an American agent. “The agent asked us to deliver various shoe care products from a Polish manufacturer to the USA”, says Barbara Zablocka, Key Account Manager, Militzer & Münch Poland. “The time frame was tight, so we agreed to ship the pallets via airfreight to Indianapolis airport; they were then trucked to the customer’s warehouses in other US states.”

Barbara Zablocka and her colleagues did such a reliable job that the agent ordered further deliveries. Soon, he asked the team for additional services, and new conditions were negotiated. In the meantime, Militzer & Münch has begun transporting the goods via sea. Which means longer transit times, but lower costs.

“Working for such a large international corporation is a special challenge, but also an opportunity” says Barbara Zablocka. “We have to meet strict regulations and tight schedules. At the same time, we are developing our abilities and the Poland-USA trade lane enormously, which is to the benefit of our other customers, too.”

Express delivery for the aviation industry

In the aviation industry, spare parts supply is a key factor for efficiency. Militzer & Münch China has specialized in a highly critical segment of spare parts availability: “Aircraft on Ground” (AOG).“Aircraft on Ground” poses a complex challenge to logistics companies. In case of an AOG, an airplane is not able to fly for technical reasons. When a plane is grounded because spare parts are missing, this often leads to delays in the flight schedule, long waiting times for passengers, and enormous financial losses for the airlines.

A Closer Look at AOG

To be able to transport passengers and freight as fast as possible, many airlines bank on Militzer & Münch as their AOG service partner, for the Beijing-based eleven-person team is specialized in this business segment. “We have been active in the AOG sector for over 20 years already”, says Andreas Löwenstein, Regional Managing Director Asia / Far East, M&M Militzer & Münch International Holding AG. About three to five percent of the monthly transports are AOG shipments. Militzer & Münch ensures that the spare parts are available at the location of the aircraft in the shortest possible “total turnaround time”.

Acting fast

Before the parts reach their destination, Militzer & Münch has to clear several hurdles. One challenge is that emergencies cannot really be anticipated, which is why it is important for the aviation team to be available to customers 24/7. “We work in shifts; emails and calls are answered in time also after business hours. One of our employees has his/her cell phone with them at all times, including on holidays. Whether the AOG requirement is received from a Chinese customer or our partner abroad, our person on duty takes immediate action”, says Yue Sun, Head of Aviation Spare Parts, Militzer & Münch China.

 

“The colleagues know the main aircraft parts, and are experienced in handling oversized and dangerous goods shipments.”

Yue Sun
Militzer & Münch China

 

Cross-national cooperation

The Chinese Militzer & Münch unit is strongly positioned. To guarantee the smoothest possible procedures, the team handles AOG transports in cooperation with the Militzer & Münch Hamburg branch. Point of contact for the Chinese airline customers is the aviation spare parts department in Beijing, which communicates all deliveries to Militzer & Münch Hamburg. The cooperation with agents in the EU and Great Britain is also coordinated by members of the Beijing team.

For the express delivery of the spare parts, Militzer & Münch China takes several steps that connect seamlessly with each other: experts and specialized engineers have to be made available, the activities of all persons involved have to be synchronized, and the AOG order has to be fulfilled as fast as possible.

 

Militzer & Münch China – Strong in Airfreight

Militzer & Münch expanded overseas when for other enterprises, the idea of globalization was still in its infancy. Militzer & Münch took first steps towards the aviation industry already in the mid-1950s, and has been able to expand its network continuously since then. The first Militzer & Münch owned representation in Asia was founded in 1981, and Militzer & Münch China was one of the first foreign logistics companies to be awarded the Forwarding License Class A. Today, airfreight is the biggest business segment of Militzer & Münch China, accounting for about 60 percent of the turnover of the Chinese unit in the 2018 business year.

State-of-the-art IT solutions

So the necessary spare parts can be delivered to their destination, IT must allow fast and precise information exchange. “AOG does not only include operational issues but also strategic ones such as aligning the customer’s IT / data requirements with our systems”, Andreas Löwenstein explains.

What spare parts are needed can be as diverse as the incoming AOG orders, emphasizes Dirk Bukowski, Regional Manager North at Militzer & Münch Germany and responsible for the Hamburg Aviation Control Tower. “The parts we deliver range from a single pouch containing some special screws to complete cabin segments like toilets, engine parts, structural components, or parts of the interior fittings.”

Reliable transport

Especially trained Militzer & Münch employees supervise the entire cycle of each AOG order from beginning to end. “Every member on our aviation spare parts team is familiar with the requirements of all our customers and with the handling procedures in the EU countries. The colleagues know the main aircraft parts, and are experienced in handling oversized and dangerous goods shipments”, says Yue Sun.

The tasks are clearly defined for each team: Beijing monitors upcoming shipments and local stocks. If there is a customer request for parts from German suppliers, Beijing informs the Hamburg branch office with precise transport instructions. The Hamburg team then contacts the supplier; when the part is ready, pick up is organized and the part is delivered to the Hamburg AEROSPACE warehouse; including special pick up and emergency booking with the carrier. Tracking and tracing are available, too. The parts then go to China as per instruction. The Beijing colleagues receive the goods and do the customs clearance.

Militzer & Münch Expands Network in Africa

The Militzer & Münch team is analyzing and developing new trade lanes in Africa. Local agents are giving support. Two countries have been defined already for new activities.

For many years, Militzer & Münch has been active in Morocco, Tunisia and Algeria. In some emerging markets south of the Maghreb region, Militzer & Münch is seeing big potential, too, in view of economic growth. Recently, the Militzer & Münch Group began intensifying relations with these countries.

The decision which new markets are to be the field of activities for Militzer & Münch was preceded by an intensive study: Holger Seehusen, M&M Group Manager Air & Sea, and his colleague Stéphane Grèze, Managing Director, Militzer & Münch Tunisia, analyzed countries in view of suitable starting points for future transports.

Militzer & Münch already operates in Algeria, Morocco and Tunisia. Among the new markets that are of interest to the Militzer & Münch Group are Ethiopia and Senegal.

 

New Trade Routes

Among these markets are Ethiopia and Senegal. Both countries provide an infrastructure that Militzer & Münch can optimally build on. Moreover, the Militzer & Münch team already has good contacts to local partners. Situated in the east of Africa, Ethiopia ideally complements the traffics from and to Asia, and with activities in Senegal, Militzer & Münch would expand the existing Maghreb traffics towards the south west and Ivory Coast.

“We are currently developing a network of reliable agents in Ethiopia and Senegal”, says Holger Seehusen. “We are strengthening our local relationships and make use of the local knowhow, which is specifically important in rough terrain such as Ethiopia. That way, we ensure smooth transports. We are confident we will soon be able to offer our customers comprehensive air and sea transports along these trade lanes.”

 

Senegambia Bridge Opens New Route

In 2019, the government of The Gambia in West Africa completed an important trade route with the construction of Senegambia Bridge. The bridge over the Gambia River, almost two kilometers in length, connects the northern and the southern part of the country that is surrounded by Senegal.  That way, trucks can now use the so-called Trans-Gambia-Highway (in Senegal: la Transgambienne) in its entire length. The newly created transport route benefits local economy as well as international trade relations.

Works of Art – On the Road

1,000 works of art from 100 countries – NordArt, an exhibition held at Büdelsdorf near Rendsburg, is regarded one of Europe’s biggest annual displays of contemporary art. This summer, Mongolia is represented with its own art pavilion. Militzer & Münch transported the exhibits from the capital of Mongolia to Büdelsdorf in Schleswig-Holstein.

Art is known to transcend borders. At Militzer & Münch, this is what happens literally. The company transported over 50 exhibits from Ulaanbaatar, the capital of Mongolia, to Büdelsdorf. It took the 40-ton truck 16 days to cover the 9,000 kilometers via Russia to the NordArt exhibition area. A long trip for the delicate exhibits. A logistical challenge: the different sizes and materials of the works of art. The collection comprises traditional portrait paintings but also installations, such as from tree branches and cable binders. Militzer & Münch is experienced in handling sensitive exhibits: several times already, the company has delivered works of art to NordArt.

Diplomatic Status for Installations

The Mongolian Embassy in Berlin, the Mongolian Ministry of Trade and the German Foreign Office supported the transport. Thus, it was possible to ship the exhibits as diplomatic cargo, which simplified border formalities. Only once did the voyage come to a halt: at the Belarusian border, the truck was stuck in a long queue for four days because of the Easter holidays. Despite a slight delay, Militzer & Münch was still able to meet the schedule. After 16 days, the works of art created by 23 artists reached Büdelsdorf as planned. Which proves that art can, in fact, transcend borders.

NordArt runs through October 13 at Büdelsdorf.

Regular Maghreb Traffics

The Turkish Militzer & Münch organization now offers regular traffics to customers with exports to the Maghreb. Every Friday and Saturday, the team transports textile products and shipments for other industry sectors to Morocco and Tunisia. The freight is consolidated in Istanbul, but the goods come from all over Turkey.

“So far, we are transporting mainly textile products to the Maghreb countries, i.e. fabrics, sewing threads, zippers and buttons”, says Alex Sandalcidis, Deputy Managing Director of Militzer & Münch Turkey. “It’s one of Turkey’s major export industries. But on this trade route, we also offer transports for all other industries, for example for the automotive sector.”

Exports From All Over Turkey

“Many orders are destined for Morocco and Tunisia, and we are increasingly shipping to Oran in Algeria,” says Alex Sandalcidis. “The goods are picked up at numerous Turkish points of origin and transported to Istanbul. At our new logistics facility, we prepare them for export. Every Friday and Saturday, we truck the consolidated freight to Vitrolles or Lyon, our French trans-shipment stations for Maghreb traffics.”

On these transports, Alex Sandalcidis and his team cooperate closely with the colleagues from Militzer & Münch in France, Morocco and Tunisia. “In most cases, the goods are not pre-sorted according to destination – the colleagues from Militzer & Münch France do the sorting”, says Alex Sandalcidis. “Then begins the last leg of the transport. We deliver shipments destined for Morocco via Algeciras, Spain, to the colleagues in Tangiers and Casablanca; they then deliver them to their final destinations in Rabat, Meknes, Fes and other Moroccan cities.”

Via RoRo to Tunisia

Tunisia-bound shipments reach the ports of Radès and Sousse via RoRo (cf. info box). “From there, we transport them door-to-door to their destinations”, Alex Sandalcidis says. “Customs clearance is done by the consignees.” The transports usually only take ten days. On their return trip, the trucks deliver goods to France.

RoRo in a Nutshell

RoRo is short for the English logistics term roll on – roll off, where the loaded trucks / trailers and railway cars roll on board the vessel. This transport option is relatively fast and flexible. Moreover, it goes easy on the freight as there is no trans-loading at the port.

Classic RoRo vessels are specifically designed as ferries for rolling goods. Their loading decks comprise the entire length of the vessel; for loading and unloading, trucks or train cars can be driven directly on or off board via the bow, side and stern portholes. So-called ConRo vessels transport not only trucks and train wagons, but also containers.

Sweets for Uzbekistan

Yulduz Babajanova, Head of Project Management, Militzer & Münch Uzbekistan, ensured the smooth transport.

Militzer & Münch Uzbekistan has handled a first big project for Crafers, a sweets manufacturer. The order comprised 56 full truck loads (FTL) – machinery from Europe worth about USD ten million. For the export, the Uzbekistan team cooperated with partners in Lithuania.

“The transports included, among others, measuring instruments and candy molds”, says Yulduz Babajanova, Head of Projects at Militzer & Münch Uzbekistan. “We also transported out-of-gauge shipments for the production of sweets, such as conveyors or big-dimensioned cooking and tempering stations.”

The team collected the parts in Germany, Italy and the Netherlands; the freight was then exported from EU in cooperation with Lithuanian partners. “We managed to reduce the number of trucks – with optimal loading and stacking – from initially 60 to 56”, says Yulduz Babajanova. In Lithuania, Militzer & Münch handled the customs management for all shippers.

Comprehensive Insurance Coverage and Coordination

“We optimally insured and coordinated the transport of the fragile equipment”, says Yulduz Babajanova. “But even so, I was in regular contact until late at night with our customer and the shipper of the goods. During the 16-day transit time, I controlled every trans-shipment process. My colleague Mirodil Khamzaev from the projects department supported me in coordinating the drivers; he was also in charge of everything connected with the insurance. Thus, everything went smoothly – the production of candies can begin.”

This year, Militzer & Münch Uzbekistan is also handling other projects for the AKFA Group, which Crafers is part of, such as for the International Business Center Tashkent.

Raring To Go For E-Commerce

Shenzhen in China – once a fishing village, today one of the main trading hubs worldwide for the electronics and telecommunications industries. From here, Militzer & Münch China starts its regular exports to Great Britain for an international online retailer – customs clearance included. The demand for transports for the online market keeps growing and offers Militzer & Münch the possibility to tap additional markets.

With its status as Special Economic Zone, Shenzhen is regarded as an important location for foreign investments; the city is one of the world’s fastest growing metropoles. The economy in the region is booming; there is demand from European countries especially for consumer electronics products such as power banks, chargers, USB cables, loudspeakers and keyboards. The Militzer & Münch customers profit from this demand, too.

In May 2017, Militzer & Münch began cooperating with the international online retailer. “This is a perfect order for us and the big opportunity to further develop our expertise in the e-commerce sector”, says Glenn Bai, Managing Director Militzer & Münch China. “We have expanded our services for this customer step by step. Now, we deliver products to Great Britain every week.”

The services comprise:

• Picking up goods for different shippers

• Order picking and packing at customs warehouse in Shenzhen

• Consolidating goods as FCL

• Sea transport from Shenzhen/Hong Kong to Great Britain

• Import customs clearance/customs clearance and taxes

• Order picking and packaging

• Labeling and kitting

• Returns management

• Delivery to the customer’s warehouse in Great Britain via FTL / LTL / courier service

New Challenges and Solutions

From China to Great Britain the goods go by vessel, with overland transport to the customer’s warehouse by truck. But the transport comes with some challenges. “There are usually over 30 sets of customs declarations per container”, says Glenn Bai. “To check the customs declarations of e-commerce business, the British customs authority has implemented stricter regulations, which often leads to delays.” Moreover, there are congestions again and again at the port of Felixstowe, Great Britain’s largest container port, and transit times become longer. “In view of the Brexit, the situation may deteriorate even further”, Glenn Bai says. “It is all the more essential for us to do a perfect job especially when it comes to customs declarations, and to provide optimal advice to our customers.”

At this time, Glenn Bai and his team are focusing on optimizing their logistics solutions for the e-commerce business. “In the long term, we will also offer rail and air freight solutions for online trade”, says Glenn Bai. “Beside the China – Great Britain trade lane, we are also concentrating on transports to Central Asia and Russia. We look forward to handling more e-commerce projects in the future.”

Next stop: Chicago

For a customer from Bavaria, Militzer & Münch Germany is handling a project – the volume of the order: 200 to 250 containers. Over several months, the team is transporting façade components and construction material from Bavaria to an American chemical plant near Chicago. In January, an extreme cold wave caused a state of absolute emergency in the USA – and posed quite some challenges to the team.

A chemical plant in Chicago is being expanded at this time. In late 2018, a Bavarian manufacturer contracted Militzer & Münch to deliver the necessary façade components and building material from Germany to the USA. The project is scheduled to be finished by spring 2020.

Up To Seven Containers Per Week

So how do over 200 heavy-weight containers get from Bavaria to Chicago? “This is of course a big project”, says Walter Weissig, Manager Ocean Freight and Deputy Branch Manager at M&M air sea cargo GmbH in Munich. “First of all, we negotiated the tariffs, the potential routes and dates with the shipping line and their trucker, and closely coordinated with our Hamburg colleagues and our partner in Chicago.”

The freight for the American customer consists mainly of 40’ HC containers and some 20’ standard boxes. All in all, the team prepares five to seven containers for transport each week, some of them weighing up to 19 tons.

“After we have loaded the containers at the exporter’s location in Lower Bavaria, the first leg of the transport is via rail to Bremerhaven”, says Walter Weissig. “From there, we ship the cargo to New York or Norfolk. The shipping line is then in charge of rail transport to the destination hub at Chicago / Norfolk Southern Landers. The last leg to consignee is done by truck.”

Icy Cold Winters and Extreme Situations

In January, a sudden cold wave hit the United States. “The polar winds caused temperatures last winter to drop as far as minus 30°C”, says Walter Weissig. “That was the second lowest value ever registered in the USA.”

Between New York and Chicago, there reigned an absolute state of emergency. “Containers were stuck up to two weeks at the port, before they were trucked to New Jerseys where they were put on rails”, says Walter Weissig. “What’s more, there is this lack of drivers in the USA. The customer of course insists on exact delivery times with the appropriate advance notice. This is not always easy to manage, as on the day the container reaches Chicago, we don’t yet know which driver is assigned for the last mile.”

Going For It, With Full Commitment

Daily reconciliation of all shipments via tracking and tracing and via mail is indispensable. “With up to 30 containers at the same time with different status reports – loaded at shipper’s warehouse, shipped on board, vessel arrival New York / Norfolk, discharged, transit to rail, rail departure, train arrival, picked up for delivery, delivery – this is extremely time-consuming”, Walter Weissig says.  “In the meantime, the transport chain has become established. Due to good cooperation between the shipping line, our agent and the customer, everything runs smoothly. Overall transit time is 30 days maximum.”

The Militzer & Münch team is already working on a follow-up project. The Bavarian shipper has enquired about the transport of another sixty to seventy 40’ containers. The consignee: another company, also in the United States.

M&M Poland Transports Grain Silos to Tanzania

Militzer & Münch Poland was awarded an extraordinary contract last winter. As part of a government project, the Polish M&M team is working on a very large order to deliver grain silos to Tanzania. The intensive contract negotiations with the customer took almost one year. The logistic and statutory requirements were a challenge to the expertise of the entire team.

In November 2018, the team of Militzer & Münch in Poland was contracted to deliver about 200 containers with grain silos to Tanzania. The grain silos protect harvests against pests and putrefaction – and can thus, in the long run, prevent hunger and malnutrition in the East African country.

“The customer had never before handled sea freight – and of course never on this trade lane”, says Artur Wojtczak, Sales Director, M&M air sea cargo S.A. “As this was a large project, he got several quotes and then took a lot of time to consider. In the end, our consulting and expertise convinced him – and he awarded the contract for the project to our team.”

 

Business Development Manager Anna Kiczak was responsible for the contract negotiations.

 

New Destination and Strict Requirements

Artur Wojtczak and his colleagues in Wrocław, Poland, demonstrated their full commitment to win the tender.  “Our Business Development Manager Anna Kiczak presented our service portfolio to the customer”, says Artur Wojtczak. “She was in charge of the negotiations that took almost one whole year.” Among others, the strict government regulations and requirements prolonged negotiations. The team had to review them in detail so as not to overlook anything. “Tanzania is a totally new destination for Militzer & Münch”, Artur Wojtczak says. “This means a valuable new experience for the whole team. Already in preparing the project we learned a lot.”

A Strong Team

The members of the team familiarized themselves intensively with the local standards. “Then, our colleague Arkadiusz Kant negotiated with the African agents the best possible conditions for the cooperation”, says Artur Wojtczak. “He has spent several years in Kenya and was thus the perfect contact person.”

The participation of Senior Business Development Manager and sea freight expert Paweł Szelest was also absolutely essential. “Together with Anna Kiczak, he worked on the contract details. Our lawyer supported us in legal matters.”

In December, the first five containers were dispatched. In the meantime, the team has already successfully delivered an essential part of the project volume, with the help of Oksana Deveterykova, operations agent at Militzer & Münch Poland.

The project is expected to last until the first quarter of 2020 – until the circa 200 containers have reached Tanzania. The project benefits from the professionality and expertise of all colleagues involved. “The destination is totally new territory for the team – and the colleagues are doing a brilliant job. From the start, they were open to the new challenge. And our customer can reach them 24/7. This untiring commitment of course generates interest among customers from similar sectors or with similar export destinations.”

 

Development Cooperation in Tanzania

Beside droughts and poor harvests, the improper storage of grains such as millet and corn is among the root causes of hunger in Tanzania. The so-called post-harvest losses often amount to almost 50 percent. This forces Tanzanian families and farmers to bridge the time until the next harvest with food they pay high prices for; as a consequence, they get into debt.

Some governments and organizations are currently committed to improve the grain farming and economic strategies in Tanzania. In the course of these projects, grain silos are sent to Tanzania, and Tanzanian craftsmen are learning to build silos from zinc sheet. Such measures allow families and farmers to better subsist on their own grain products and to sell surplus stock at a profit in the long term. This again allows them to invest in the education of their children.

Across half the globe, in three days

In 2018, Militzer & Münch Poland started exporting freshly picked blueberries for the new customer Agro Trade. The Argentinian berries are very sensitive and stay fresh only for a few days after harvest. A single delay in the transport process can lead to the entire freight losing its value.

For many years already, Agro Trade, a Polish family company, has been specialized in cultivating and trading blueberries. In 2018, Agro Trade commissioned Militzer & Münch Poland to import the popular fruit from Argentina and to transport it to Western and Northern Europe.

In summer, when the Polish blueberries are ready for harvesting, Militzer & Münch Poland delivers them, via road, to Germany and the Netherlands among others. “Demand for blueberries has increased so much over the last few years that Agro Trade has long begun importing the fruit also from Argentina”, says Wlodzimierz Scibiorek, business development manager at Militzer & Münch Poland since 2007.

From the bush to the retailer

Most challenging in transporting sensitive, fresh goods are temperature fluctuations and the transit time. Exposed to frost or excessively high temperatures, the berries can lose their form and freshness. In order to guarantee the best possible quality, the blueberries have to reach the retailer and consumer as soon as possible after they are harvested. This requires strategic, quick procedures especially for the transports from Argentina.

“From South America, we ship the berries directly to the airports of Frankfurt and Amsterdam”, Wlodzimierz Scibiorek says. “From there, we take them to the sorting plant in Poland, where they are packed. Then, the blueberries are already dispatched to the European retailers. Thus, transit time is only two to three days.”

For every import shipment, Militzer & Münch Poland and Agro Trade set up the exact schedule for the shortest possible delivery time. The buyer has to provide the necessary documents, papers and certificates for everything to go fast. “Every error can be expensive”, says Wlodzimierz Scibiorek. “Unnecessary delays impair the fruit and lead to loss in value. With smooth processes, Militzer & Münch Poland guarantees that in the end, someone can enjoy the fresh, sweet fruit in their muesli or muffin.”

Agro Trade plans to tap into and supply new markets in Japan, China, Korea and the United Arab Emirates together with Militzer & Münch Poland – the versatile and healthy blueberries are also highly popular in Asia.

Airfreight to Indianapolis

Militzer & Münch Poland acquired a renowned new key account last year: the US American sawmill manufacturer Wood Mizer. Many of the customer’s machines weigh up to a ton and are considered dangerous goods. Dariusz Onisk, Key Account Manager at M&M air sea cargo S.A., and his colleagues organize airfreight shipments, among others to South Africa and the USA.

Over 25 years ago, Wood Mizer established a production plant at Kolo in central Poland. The saw mills of the company that was founded in 1990 are in use in over 100 countries. “In spring 2018, Wood Mizer contracted us for the first export shipments”, says Dariusz Onisk. “Since then, we have transported saw mills and other equipment via air to the USA, to Sri Lanka, South Africa and India among others. For LCL shipments with destinations in Africa and China, we occasionally offer our customer also sea freight solutions.”

Dangerous goods challenges

Wood Mizer’s saw mills and other timber processing machines weigh between 200 and 1,000 kilograms on average. Many also come with a combustion motor and are thus subject to the IATA Dangerous Goods Regulations (DGR). “Every shipment is unique, and the challenges we as forwarders are confronted with vary from shipment to shipment” says Dariusz Onisk. “Transporting DGR goods is especially demanding. Depending on the size and weight, we load the big saw mills into special wooden boxes or strap them onto pallets.”

In late 2018, the Militzer & Münch Poland team transported an especially heavy shipment to the USA in the shortest time. “The saw mill was to reach the consignee in Indianapolis as fast as possible. We packed it in a 4.2 x 1.5 x 1.3 meter wooden box. The gross weight was almost 1.5 tons”, Dariusz Onisk says. “In cooperation with Wood Mizer and the airline in question, we met all security and safety requirements and got the cargo to its destination safely and on time.”

Good cooperation generates trust 

For every transport, the Militzer & Münch Poland team is in close contact with Wood Mizer. The saw mill manufacturer is kept informed during the entire process. “It is important to be fully responsive to the customer’s requirements during preparation and execution of the transport”, says Dariusz Onisk. “By now, I am perfectly familiar with the habits and needs of Wood Mizer. My team and I, we can offer the customer very individualized service.” The next destinations have long been defined. “Today, we pick up a saw mill in Poland for transport to Taipeh.”

Too big for rail freight

Militzer & Münch transported out-of-gauge wooden boxes, a total weight of circa 28,300 kilograms, from Shanghai, China, to Almaty in Kazakhstan. Much too big for rail transport – but Militzer & Münch offered the perfect solution to transport the huge blower systems for transformers.

For a renowned German technology corporation, Militzer & Münch China has been handling regular transports via rail from China to Germany since late summer last year. Which is why the customer also commissioned Militzer & Münch with the transport of transformer cabinet blowers and cell cabinets from China to Kazakhstan. As usual, this shipment was also meant to go by rail; yet owing to a change in regulations, rail freight was not possible. “We had to explain to the customer that the new Chinese railway regulations that became effective in January 2019 did not allow transporting out-of-gauge cargo via rail”, says Glenn Bai, Managing Director Militzer & Münch China. “So, our colleagues from different Militzer & Münch branch offices cooperated to offer the customer an alternative solution.”

Truck as an alternative means of transport

The result: Militzer & Münch delivered the freight as full truck load (FTL). The Militzer & Münch branch office in Urumqi in north western China made it possible. Located near the border to Kazakhstan, the branch office fulfilled the necessary conditions for the transport, as the cargo had to be transloaded by Militzer & Münch at Khorgos, Kazakhstan, at the border to China. The reason: Chinese trucks are not approved for transports in CIS countries. As they are near Khorgos, the colleagues at the Urumqi branch were able to take care of the transloading process on site.

The advantages of cooperation

To realize the entire transport, three Militzer & Münch colleagues worked closely together: Kaka Xu, M&M China’s Account Manager for the technology corporation, Anna Elcheva, Trade Lane Manager Russia and CIS at Militzer & Münch, and Guanghua Nie, Manager of the Urumqi branch. The three colleagues also contributed helpful local knowledge, such as for customs clearance. All in all, the transport took only 14 days.

“Our advantage at Militzer & Münch is that we operate numerous branch offices in many countries along the New Silk Road”, says Glenn Bai. “Without this, the transport of the over-dimensioned cargo via truck would not have been possible.”

Wagons from Belarus on Hungarian railway tracks

For a leading Swiss manufacturer of rolling stock, Militzer & Münch Switzerland transports components to Belarus for the assembly of rail wagons, and to Hungary for interior fitting. The wagons are to be used for passenger transport on the Hungarian railway network.

Over the last few years, the rolling stock industry has profited from a steadily increasing total market for new railway vehicles. While in 2012, the turnover was at 48 billion EUR, it reached 55 billion EUR in 2017. This global growth also benefits the Militzer & Münch customer, who manufactures customized railway vehicles for his clients, meeting their individual requirements in terms of interior design as well as in terms of technology.

The construction material Militzer & Münch transports for the customer comes from different countries and covers everything that is needed for the construction of railway wagons. The freight includes aluminum profiles, toilets, brakes, switches, cables, foamed plastics and textiles.

Militzer & Münch Basel serves as control tower

“Several Militzer & Münch teams cooperate on this project so we can offer the customer the best possible transport solution”, says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia. “We use the Militzer & Münch Belarus truck fleet. Militzer & Münch Basel coordinates the entire project; the Basel team also does the customs clearance. We also use our Eichenzell location as a consolidation hub for goods from Europe.”

Since January 2018, the Militzer & Münch team has handled about four to five full truck loads (FTL) from Switzerland to Belarus per week. From Eichenzell, another two to three FTL transports are dispatched to Belarus per week.

There are plans to extend the weekly transport volume to 15 full truck loads destined for Belarus and Hungary. “We are pleased with the volume of this order, and with the complexity that comes with it”, says Nikolaus Kohler. The big project is scheduled to run through December 2019. The customer has already announced further transports, this time to Azerbaijan.

An individually tailored IT solution

One special feature characterizes the wide-ranging project: thanks to the in-house IT company ‘MMcom’, Militzer & Münch can offer the customer an IT solution that is optimally designed to meet his requirements. Via the IT platform, the goods flows from different countries of origin via two consolidation hubs to the destinations in Belarus and Hungary are registered and mapped. Per remote data transmission, the system indicates in real time which shipments have been received at the warehouses in Switzerland and Eichenzell, and collates them into packing orders.

Heavy lift, long distance

22 transformers and associated equipment from Shanghai to Port Sudan – that was the order for Militzer & Münch China. The heaviest cargo weighed 67 tons – the total weight of the goods was too much for a normal bulk carrier.

The customer, a company from the energy and utilities sector, needed the transformers for the construction of several transformer stations. The volume of the freight: circa 11,000 cubic meters, the equivalent of around 78,500 water-filled bathtubs – a challenge for the team.

“The obvious solution: we used a heavy lift carrier for the transport”, says Sara Zhang, Project Operation Manager M&M Beijing. “That allowed us to cover the 7,000 sea miles smoothly.” For Militzer & Münch China, this break bulk shipment was the first order from the customer, and also the first transport to East Africa.

The transport had been planned in detail beforehand so the entire freight could be collected at one point and shipped out simultaneously. “Not only the transformers, also the associated equipment differed a lot and came from several places of origin in China”, says Sara Zhang. “A time-consuming endeavor; but together our team and our local partner coordinated the project perfectly and cooperated successfully to handle the transport within the time frame set by the customer.”