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.

Strong in Sea Freight

Just over a year ago, the Sri Lankan organization of Militzer & Münch took up operations at the port of Colombo. Despite the country’s difficult internal situation, the company keeps growing, with especially sea freight developing very well. In order to offer even better service to their customers, the team optimized the company’s IT. What’s more, Militzer & Münch Sri Lanka is now a member of FFSI, the global transportation network.

Militzer & Münch has been operating in the island nation in the Indian Ocean since 2015 – initially via a delegation office. The growing importance of Sri Lanka as a logistics hub on the Maritime Silk Road in South Asia and the expansion of the port of Colombo led to Militzer & Münch founding its own logistics company there in June 2018.

Successful in The Sea Freight Segment

Operating from the office at the port of Colombo, the capital of Sri Lanka, the team works for a wide range of industry sectors. “Beside tea and coconut fibers, also air plane tires, raw material for textiles, electronic devices and laboratory equipment are among the goods we mainly transport”, says Dilum Stembo, Managing Director M&M Militzer & Münch (Pvt) Ltd. “In 2018, sea freight accounted for far more than half our transports.”

First Multimodal Transport

Most shipments are sent to Europe or the CIS countries. A CIS country was also the destination of Militzer & Münch Sri Lanka’s first multimodal transport. In July the team in Colombo handled a shipment from Thailand via the Russian port of Vostochny to Uzbekistan, in cooperation with sister company InterRail. The freight: about 23 tons of steam activated carbon, which Militzer & Münch transported in a 40’ high cube container. The transit time was 55 days. Additionally the team handled the transport of another two 40’ high cube containers with about 56 tons of coco fiber from Colombo to Tashkent – this could turn into a regular order for the Militzer & Münch team.

Part of The Network

In May 2019, Militzer & Münch Sri Lanka joined FFSI (Feta Freight Systems International), a transportation network within the Far East Transportation Association (FETA). “The FFSI membership offers us vast opportunities to cooperate with qualified transport companies”, says Dilum Stembo. “As part of the network, we hope to be able to further develop our business. Moreover, we and also our customers profit from a wider geographic coverage. Apart from the advantages that come with the membership, being part of FFSI also constitutes a high distinction for us, as the network only accepts the best transport companies as members.”

Customers Benefit From New IT

Continuous improvement of processes is part of the growth strategy of Militzer & Münch Sri Lanka. “It motivates us to always define new potential for optimization”, Dilum Stembo says. Recently, the team replaced the TA (transport administration) system. “The new system is much better adapted to Sri Lankan standards – it allows us to work in a more efficient way, to offer our customers even better service, and to continue growing in the market”, Dilum Stembo explains.

 

M&M Poland Now Regulated Agent

With the new status as Regulated Agent, Militzer & Münch Poland can offer its customers faster, cheaper and more secure transport of cargo by air.

Airfreight is subject to comprehensive and complex security regulations, from which shipments forwarded by a Regulated Agent are exempt. To acquire this status, companies need to undergo an accreditation audit with the responsible aviation authority and to train their staff accordingly.

The Regulated Agent status comes with advantages for logistics companies and their customers:

• Exemption from cargo security control;

• Reduction of operating costs
(no additional cargo security control at the airport needed);

• Acceleration of the cargo handling process;

• Increased credibility on the air freight market.


The New Status Motivates The Team

In late February 2019, M&M air sea cargo S.A., the air and sea freight segment of Militzer & Münch in Poland, was accorded Regulated Agent status. This is another step forward on the company’s path to further optimize and expand its customer service.

“We are happy to be able to act as Regulated Agent in line with the EU regulation for our customers”, says Artur Wojtczak, Director Sales M&M air sea cargo S.A. “This holds a big advantage for our customers, yet at the same time for us as a company it means big responsibility.” Thus, the Regulated Agent has to declare shipments as secure or not secure, among others; he has to guarantee that no prohibited items get on board with airfreight shipments, and issue the necessary accompanying documents.

Paweł Iwaniuk, Manager of the Export Department at Militzer & Münch Poland: “In view of the good development of airfreight exports – especially in the foodstuff and cosmetics sector – the Regulated Agent status is of great support to us in our everyday jobs. We can now handle export orders smoothly and much faster than before. Working within a secure supply chain will also help us win as new customers such companies that want to grow with us.”

Faster Processes and Greater Security

Smooth processes and wide geographic coverage are decisive factors for the success of an international logistics services provider. Militzer & Münch Morocco’s AEO certification helps the company to further strengthen its market position – also to the benefit of the customers.

Continuous development is part of everyday business for the Moroccan organization of Militzer & Münch; the logistics company under Managing Director Olivier Antoniotti keeps expanding at regular intervals. Among the expansions are the opening of the country’s first bonded customs warehouse in 2000, the founding of subsidiary Spedimex in 2001, and the construction of new locations in Casablanca (2003), Tangiers (2008 and 2016) and Sapino Nouaceur (2012).

Improving The Supply Chain

The foundation of this growth is the smooth supply chain, which is continuously optimized by Militzer & Münch Morocco. Since May for instance, the company has been acting as an Authorized Economic Operator (AEO, Full certificate) – which means the company was granted AEO status in Morocco. ‘Authorized Economic Operator’ is an internationally recognized certificate that simplifies customs processes and guarantees appropriate safety and security standards along the supply chain.

Headed by Olivier Antoniotti and his deputy Ahmed Zouhair, the Militzer & Münch Morocco team worked for two years to upgrade the organization to the requirements of AEO Full certificate standards. In order to receive the full certificate of Security and Safety (AEO S), the company had to meet all applicable customs and tax regulations and provide appropriate security measures and proper accounting. It was well worth the effort, and in May, Olivier Antoniotti signed the contract.

“The AEO status allows us to speed up international goods transports”, says Olivier Antoniotti. “That way, we can offer our customers simplified and more efficient transport services. We are especially proud to be the first company to have been granted AEO Full certificate status in Morocco.”

As a next step, the company is working on a full EDI connection (Electronic Data Interchange) with the Moroccan customs. This data interchange allows paperless transfer of customs declaration delivery notes and other business documents from system to system without manual intervention. As a result, processes run even faster and more effectively.

 

Ever watchful

New services, increasing export activities, and challenging projects in sight – Militzer & Münch Uzbekistan is growing rapidly and has many big plans. Khurshid Kasimdzhanov, since 2006 Managing Director of the Uzbek M&M organization, gives an insight into the current developments.

Mr. Kasimdzhanov, in how far have the logistics services Militzer & Münch Uzbekistan offers changed in the course of the past few years?

Khurshid Kasimdzhanov: As Militzer & Münch has a strong presence in Europe, in the past, we mainly offered import services from Europe. Two years ago, we entered new terrain by opening our own export department. We are very successful in this field. We have regular truck transports to CIS countries and to Europe. This step was of major importance for the development of our business.

 

Khurshid Kasimdzhanov, Managing Director, Militzer & Münch Usbekistan

 

Where do you see the challenges and opportunities for Militzer & Münch Uzbekistan at this time?

Khurshid Kasimdzhanov: Lately, many foreign logistics companies have appeared on the Uzbek market, and many new Uzbek companies have been founded. This leads to stronger competition in the logistics sector. On the other hand, there are many positive changes at this time in Uzbekistan, changes that we benefit from. Developments like the growth of e-commerce require fast and professional transport and logistics solutions. For us, this is a great opportunity, and we grow with these challenges. With the support of the Militzer & Münch Regional Management, we are continuously expanding our business. We recently moved to a big new office and took on additional staff – currently, there are twenty experts on my team.

Which change is the most advantageous for you?

Khurshid Kasimdzhanov: The main business of Militzer & Münch Uzbekistan is the import of equipment and machinery for textile production. Increasingly, the Uzbek government is selling cotton to local manufacturers for further processing, instead of just exporting raw cotton abroad as in the past. Thus, many new textile factories are taking up operations in Uzbekistan, and export their products. For our customer Uztex , we are at this time transporting 50 containers from India to the customer’s production plant in Uchkurgan, Uzbekistan.

Are you registering any future trends that might be interesting for Militzer & Münch Uzbekistan?

Khurshid Kasimdzhanov: Yes indeed; the construction sector is showing rapid growth at the moment. New hotels, office buildings and sports centers are being built everywhere. It is our strength to always be alert and keep a watchful eye on such developments. We are currently preparing for new customers from this sector, and expanding our service portfolio specifically for this industry.

Everything under one roof

In late 2018, Militzer & Münch moved to a new distribution center in Greece. At the new, spacious location in Aspropyrgos near Athens, Militzer & Münch combines different warehouses. The modern technologies and efficient usability of the new premises optimally support logistics activities and contribute to the growth of the company.

Militzer & Münch Greece has moved to a new location. The new construction at Aspropyrgos, an Athens suburb, is situated close the old warehouse near the Athens-Patras Motorway. In addition to Aspropyrgos, Militzer & Münch Greece continues operating at the second location, in Thessaloniki, the western port city.

As private consumption, the main indicator of Greek economy, remains at a low level, and the manufacturing industry is all but non-existent, Militzer & Münch has shifted its focus to value added services. Being the leading provider of these services in Greece, Militzer & Münch early on recognized the opportunity. “The move to the new logistics facility allows offering such services as labeling, picking and packing, warehousing and customs management at a very high level”, says Panagiotis Manolopoulos, Managing Director M&M Militzer & Münch S.A.

Bundling activities at one location 

With a storage area of 13,605 square meters and a 500 square meter zone for offices and staff rooms, the new complex lets the Militzer & Münch Greece team combine all the activities handled at Aspropyrgos under one roof. Until autumn 2018, warehousing and office areas were spread over four buildings at different addresses.

Not only does the building offer lots of space, it also comes with optimal ceiling height. Thanks to the space-saving sprinkler system under the roof, the employees can make efficient use of the space available: the shelves go up to almost ten meters in height.

In terms of technological and ecological aspects, the warehouse offers enormous added value, too. “We have here a very modern, energy-efficient new building equipped with state-of-the-art technology”, Panagiotis Manolopoulos says. “The warehouse features 14 electronically controlled ramps. Transparent overhead light strips allow working by daylight almost full-time and reduce energy consumption.” With high speed Internet and innovative warehouse management software laying the technological base, the company can now offer the entire service spectrum of a 3PL and 4PL provider.

The move, and the growth it enables, were duly celebrated. “On January 21, we festively inaugurated the new building”, says Panagiotis Manolopoulos. “Apart from our main customers, the directors of the German-Greek Chamber of Commerce and the Greek Forwarders’ Association attended.”

In Istanbul: a 6,000 square meter logistics area

On 1st October, the Militzer & Münch Turkey team moved to a new office and a new warehouse in Istanbul. The location, optimally situated in vicinity of Istanbul’s Muratbey customs office, lends itself for cross docking and also allows a wide range of logistics services; it also simplifies overland transports between Europe and Turkey.

Militzer & Münch Turkey has been operating the new warehouse and office at Hadımköy, Istanbul, since October 1st, 2018. From this location, the team offers mainly road transports going to Europe, but also to other destinations such as the Balkans and CIS countries.

Despite the economic situation of the country, Militzer & Münch Turkey managed to develop successfully. “We succeeded in winning new customers and increasing our turnover; and in the past months, we were able to dedicate more time to such services as intermodal solutions”, says Cem Ulusoy, Managing Director of Militzer & Münch Turkey. The future looks very bright to the Turkish M&M organization. “Increasing our market share, developing our transports volumes, and also concentrating on combined traffics and the project business still are and remain our targets.”

At a total area of 5,700 square meters, of which 350 square meters office space, the facility has more capacity than the former warehouse and also provides the possibility to offer additional logistic services. “3,000 square meters of the facility alone are dedicated for bonded storage”, says Cem Ulusoy. “Other sectors we use for cross docking for export shipments and as storage and distribution center for domestic goods.”

The sales team at Militzer & Münch Turkey profits from the facility’s optimal situation in Istanbul. “The new location is near the Muratbey customs office, which seals all export trucks. Moreover, many big corporations with import and export business are domiciled around us within a 20-kilometer radius”, Cem Ulusoy says. “The close proximity lets us reach existing customers and potential new ones much better.”

The Lapis Lazuli Route reopened

In earlier times on camelback, today via truck: since the end of 2018, the famous trade corridor between Afghanistan and Europe has been reopened. The transport route, named for the blue semi-precious stone, dates back more than 5,000 years and comprises the shortest overland and sea routes between Central Asia and Europe.

At the Afghanistan Regional Economic Cooperation Conference in November 2017, the foreign ministers of the countries involved – Afghanistan, Turkmenistan, Azerbaijan, Georgia and Turkey – signed the transport and transit agreement concerning the Lapis Lazuli Route. The roads, railway tracks and waterways connect Europe and Turkey, via the shortest routes, with Afghanistan and Central Asia, and via the New Silk Road also with China.

The reopening of the Lapis Lazuli Route is meant to promote regional cooperation and to strengthen the economic and cultural relations between Asia and Europe. In the long term, the initiative will also boost Afghanistan’s infrastructure and economy.

3,000 years before Christ 

The Lapis Lazuli Route is part of the old Silk Road. The name is inspired by the history of the trade routes used to export lapis lazuli (Latin for: blue stone) more than 2,000 years ago from Afghanistan to the Caucasus, to Russia, the Balkans, to Europe and North Africa.

More than 6,000 years ago, man began mining the valuable lapis lazuli deposits for export to far-away regions. Parts of the trade lanes that make today’s Lapis Lazuli Route between Afghanistan and countries to the west were established already in the third millennium before Christ. Using different routes, caravans of up to 4,000 animals covered distances of 3,000 and more kilometers to take lapis lazuli and other rocks mined in Afghanistan to Mesopotamia and Egypt.

The only suitable means of transport were donkeys and camels. While donkeys carried the goods safely across the eastern mountain ranges, the camels were able to cover the rest of the distance across the sandy desert, owing to the fat storage in their humps. On arrival in Mesopotamia, the traders exchanged the blue stone, among others, against wool and grains.

The Lapis Lazuli corridor in the 21st century

For a long time, owing to insufficient infrastructure along sections of the route and the economic and political instability of the countries involved, the route was impassable. Massive investments in connection with the BRI (Belt and Road Initiative), China’s program to push the development of the New Silk Road, contributed to the revival of the old trade routes. This also benefitted the projects of the Militzer & Münch group in Turkmenistan, Azerbaijan, Georgia and Turkey.

Today, the Lapis Lazuli Route is of interest for the transport of cotton, dried fruit and sesame products, which can now be delivered to Europe within the shortest time via the reopened sea and overland routes.

 

“Logistics is an essential part of a company’s success”

As Managing Director of the courier and express service provider EMEX Kazakhstan, Tatyana Vorobyeva is familiar with the challenges and opportunities of the logistics industry. Since 2003 EMEX, a Militzer & Münch company, has been offering KEP (courier, express and parcel) services for particularly urgent shipments. The company benefits from the philosophy and global network of FedEx.

Ms. Vorobyeva, what was your motivation to work in the logistics industry when you started your career?

Tatyana Vorobyeva: To me, logistics is not just a necessary business tool – it is a real business driver. It is an opportunity to show not only professional skill, but also creative abilities. From shipment to delivery, the collaboration of many people is involved.  This can be compared to a living organism, which must constantly, clearly and harmoniously function – without ever stopping. Movement and achieving the desired results are my main incentive and motivator.

What are your tasks and biggest challenges at the head of EMEX? 

Tatyana Vorobyeva: For me, the main task of a manager is centrally managing  the employees’ mindsets. I want to motivate each employee and direct their energy so we can achieve our common goals.

EMEX employees at the winter sports company event “EMEX Asiada 2018“

What were the most important milestones for EMEX? 

Tatyana Vorobyeva: The most significant achievement for EMEX was the opportunity to represent both the TNT and FedEx brands in the Kazakh market. In connection with the merger of FedEx and TNT, we implemented many important improvements for a successful transition at a crucial juncture and in a short span of time. We successfully increased our scope and revenue, and improved our business processes and operations. The whole procedure was complex and time-consuming – nevertheless, our team at EMEX fulfilled all necessary actions and requirements. We can call the project “merger FedEx / TNT in Kazakhstan” a true success. EMEX hired more than 45 new employees after the merger of FedEx and TNT. Today the total EMEX workforce exceeds 105 specialists. The company has doubled in size during the transition period, which took approximately three months.

Why has Militzer & Münch implemented the courier and express service EMEX?

Tatyana Vorobyeva: EMEX was founded in 1998. As business became increasingly global, competitive, and rapidly changing, everyone from entrepreneurs to large companies needed accelerated delivery. So they turned to us for flexible and innovative solutions. To offer these became priority number one when the M&M Militzer & Münch Group express delivery service was established.

What services does EMEX offer?

Tatyana Vorobyeva: By now, we have compiled a unique portfolio of services – from express delivery, forwarding and customs clearance of cargoes to complex solutions that completely cover the needs of our existing and potential partners. We deliver more than packages. We simplify international transport by helping customers manage their imports and exports by sea, air, or land. Also, EMEX pays special attention to developing the cooperation with the E-commerce segment. For the convenience of online stores, we introduced a universal product designer that allows our customers to select additional options beyond the basic package of express services – for example cash on delivery or partial redemption.

EMEX is very successful in Kazakhstan. What is the secret of its success?

Tatyana Vorobyeva: One of the main attributes of the success of EMEX is the introduction of the FedEx philosophy into people’s day-to-day business processes. The philosophy focuses on people’s commitment and business success. The people-service-profit philosophy is based on the confidence that by creating a favorable working environment for employees, the company motivates the staff to provide better customer service. This leads to consumer confidence and increases the demand for EMEX / FedEx / TNT products and services.

What are the future goals for EMEX? 

Tatyana Vorobyeva: EMEX supports policies that promote the interests of our customers, team members, owners and businesses. The goals from the point of view of shareholders and the company as a whole are growth and profitability.

In Hamburg, we benefit from short distances

The “Gateway to the World” – a self-confident label the port and trading city of Hamburg has been using for decades to present itself. The Federal Republic’s second biggest city is an important transportation hub, where vessels from all over the world load and unload their cargo. For Militzer & Münch in Germany, Hamburg is the gateway for sea freight shipments, too, in export as well as in import.

“In Hamburg, we benefit from short distances”, says Dirk Bukowski, Regional Manager North M&M Air Sea. “Theoretically, with digitization today, we can of course organize sea freight shipments from everywhere. But the operations part is much more target-oriented and productive owing to our local branch office at Hamburg sea port.”

The Militzer & Münch Hamburg team can offer their customers all services from one source; they include handling, receipt of the goods and customs clearance. To put the competences to the best possible use, the employees cooperate with all other Militzer & Münch branch offices, most of all in Germany. Thus, the Hamburg colleagues closely coordinate with the Dusseldorf team, which also has a strong sea freight department as it is located near Antwerp.

Not a niche player

Beside sea transport, Militzer & Münch also offers airfreight from Hamburg, without restricting itself to certain industries or goods. “In the literal sense of the word, we are an ‘allrounder’ for our customers”, Dirk Bukowski says. “Generally speaking, we can serve all industries and all the destinations we use for sea freight. we mainly use the magic triangle of Europe-Asia-North America.”

Among the export goods are machinery, components for the automotive sector and consumer goods such as foodstuffs. From overseas, mostly from Asia, Militzer & Münch imports a wide range of products from electric and household appliances to textiles, toys and tea.

North America business especially successful

In the past two years, the Hamburg Militzer & Münch team managed to increase the shipping volume by 10 to 15 percent. This successful development is also owed to the exports for a big German producer of confectionary: every week, several big refrigerated containers leave Hamburg, mainly for Japan, but also for other Asian regions.

Especially good growth is registered in the business in and with North America. Dirk Bukowski names three factors that account for the development:

In summer 2017, Militzer & Münch appointed a Route Development Manager who exclusively focusses on North America; he intensively nurtures the local partnerships.
With teams operating in Germany’s south east, in the west and in central Germany, Militzer & Münch can bank on lots of know-how and was thus able to further develop the sea freight segment.
In Hamburg, an operationally very experienced team is handling exports.

In cooperation with the Munich colleagues, the Hamburg team is handling big contracts with some hundred containers for two German customers exporting machinery, façade components and other construction parts to the North East and the South of the United States.

Targets and challenges

In terms of airfreight and sea freight, Germany is highly developed. The forwarding industry counts many big players. Thus, it is challenging for medium sized enterprises like Militzer & Münch to assert themselves in the market. “Over the past few years, we were able to do many great projects”, says Dirk Bukowski. “But nevertheless, we have to fight. We have to define exactly what Militzer & Münch stands for, and to set ourselves apart from the competition with our services.”

One of the characteristics for example is that Militzer & Münch in Hamburg assigns to each customer one designated contact person, who supports the customer during the entire project in all matters. “Our customers get to meet their contact persons personally, and our staffers know our customers inside out”, says Dirk Bukowski.

The Regional Manager also believes that the “fight for talents” is an essential factor. The Hamburg team wants to be known among young professionals and hire the right personnel. Yet young professionals often want to start their careers with the big logistics corporations. Therefore, the Hamburger Militzer & Münch team offers young talents clear career opportunities – for instance, employees at Militzer & Münch can take on responsibility at an early stage.

“Our target is to generate further growth in the coming years”, Dirk Bukowski says. “To this aim, we want to extend and strengthen our customer base in Hamburg.”

The New Silk Road – a threat to sea freight?

The Chinese Belt and Road Initiative ensures an ever-increasing development of the New Silk Road. Logisticians have since begun transporting more and more of their shipments between Europe and Asia via rail. The Militzer & Münch Hamburg team notices that many customers are already scheduling rail transportation for 10 to 15 percent of their total container volume.

Often, especially time-sensitive goods are transported via rail today, as this is the faster transport mode compared to sea freight. Yet, the continually increasing numbers of rail transports have no negative impact on sea freight transports. It is a fact that sea freight capacities are still by far bigger. As Dirk Bukowski explains, even if rail traffic grew a hundredfold, it would still not decrease the utilization of the vessels. A normal container block train carries 42 x 40’ containers, while nowadays a vessel transports on average 20,000 TEU, which equals 10,000 x 40’ containers.

Brexit – is your supply chain up to it?

Formal deal, no-deal departure, a delayed Brexit – the withdrawal of the United Kingdom (UK) from the European Union left room for every kind of speculation in the past few weeks and months. One thing is clear: the changes in the UK will impact supply chains.

Companies with activities in import or export to and from the UK have to re-asses their supply chains. They have to be ready to deal with the fact that comprehensive customs formalities require additional know-how on the side of their staff. In the future, customs controls can prolong delivery times. Another issue is in how far the company’s IT infrastructure is suited for the Brexit.

The Militzer & Münch customs experts have carried out intensive preparatory work on the topic, and consult companies in all matters pertaining to formalities and statutory regulations. Be it with transports from Scotland to Bulgaria or from Latvia to England – we assist our customers when it comes to clarifying in how far the changed trade regulations are impacting their supply chain.

Should you have any questions concerning transports to and from the UK, please feel free to contact us.

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.”

Militzer & Münch customs agency in France

For companies, international trade comes with a number of challenges – one of them is customs management. In order to further simplify the processes for its customers, Militzer & Münch France has established its own customs agency, including an IT module specifically developed for this purpose.

Since January 1, 2018, the new customs agency of Militzer & Münch France has been filing the customs declarations of all ten Militzer & Münch France locations. The customs agency operates with declarants in six branch offices in Lille, Saint-Thibault-des-Vignes (Paris), Marseille, Lyon, Nantes and Bordeaux. Three of them are regional declaration centers: Lille, Marseille and Nantes. The teams have in-depth country-specific knowhow. They are specialists in customs management: be it the customs clearance procedure, customs regulations or the payment of fees and taxes. Each M&M branch reports its demand for customs declaration to its regional declaration center via an IT module that was specifically developed.

Militzer & Münch France does export as well as import customs clearance. “We offer our customers consultancy from A to Z”, says Régis Samain, Manager of Lille’s regional declaration center  and Head of the Customs Agency at Militzer & Münch France. “Our teams are always up to date with the latest developments concerning currently valid customs agreements and regulations as well as the certificates required.”

One customs agency, three regional declaration centers

The headquarters of the customs agency is at the Militzer & Münch Lille (Halluin) office.

  • Lille: In cooperation with the declarants at Saint-Thibault-des-Vignes (Paris) and Lyon, the regional declarations center Lille does the customs clearance for Militzer & Münch Lille, Paris, Roissy and Lyon.
  • Marseille: The Marseille team is exclusively in charge of the customs declarations of Militzer & Münch Marseille.
  • Nantes: The declarants from Nantes and Bordeaux work together with the regional declaration center Nantes – they are responsible for customs clearance of the Militzer & Münch branch offices in Nantes, Bordeaux, Mulhouse and, in part, also Lyon.