Spare parts 24/7 – further industries benefit

Spare parts supply around the clock, seven days a week – Militzer & Münch already successfully offers this service to airlines and their fleets. Now, other industries that depend on the fastest possible spare parts delivery can benefit from the offer, too.

When an aircraft has to be grounded because an important spare part is needed, utmost urgency is imperative. For the Hamburg air freight office of M&M air sea cargo GmbH, such emergencies therefore have top priority. “An aircraft that is grounded causes high costs,” says Dirk Bukowski, Regional Manager North Germany. “That’s why it’s enormously important to respond as quickly and flexibly as possible in the event of an AOG emergency.”

From combine harvesters to wind turbines

AOG stands for ‘Aircraft on Ground’, and it is for aircraft spare parts that the 26-person team has primarily been in action to date. “Our customers mainly include airlines in China, Taiwan and India,” explains Dirk Bukowski. “We have now expanded our AOG service to other industries. ”Whether the maritime industry, manufacturers of large vehicles such as combine harvesters and forklifts, or of wind power plants and the workshops assigned to them – many companies rely on short-term delivery of spare parts and can now take advantage of Militzer & Münch’s offer.

On duty, non-stop

The special feature: Militzer & Münch assures its customers of a reliable 24/7 service, completely independent of the logistics provider’s other workload. Shipping and inventory are controlled by the Militzer & Münch branch office in Hamburg via a control tower, which is the interface to customers and partners.

“Our team can directly access our own warehouse, which has not been common in the industry for a long time,” says Jennifer Bastkowski, Branch Manager Airfreight. “The warehouse is connected to our office and is located just a few hundred meters from the cargo area of Hamburg Airport. This allows us to process urgent orders within the shortest possible time. Already, our service is attracting a lot of interest from ocean carriers and commercial vehicle manufacturers.”

Stability even in the pandemic

While expanding its service to new customer groups, the Hamburg team is currently coping with the effects of the Corona pandemic. This is because, although global passenger traffic in particular has fallen sharply, an above-average number of spare parts are currently being ordered that have to be sent on their way immediately – often outside normal working hours or on weekends and public holidays.

At the same time, order handling is now much more time-consuming. “In the times before the pandemic, we transported a significant proportion of our airfreight in passenger aircraft as so-called ‘belly loads’,” explains Jennifer Bastkowski. “Due to the restricted passenger air traffic, this cargo space is largely eliminated, especially on the long-haul route to China.” For the time-critical spare parts transports, there are currently almost exclusively cargo flights available, but they operate irregularly during the pandemic. That makes planning more complex. “Our team has mastered the challenges with flying colors, and the new procedures have long since become routine,” says Dirk Bukowski. “Now we’re looking forward to new tasks in new sectors!”

“Anyone who is content with the status quo will quickly be left behind”

Andreas Löwenstein has 28 years of experience in logistics. He has been working for Militzer & Münch since December 2019 – and in the position of Regional Managing Director Asia / Far East since April 2020. He studied sinology and has an affinity for Asia and China in particular. In this interview, he tells us what fascinates him about Asia, and what plans he has for Militzer & Münch in the eastern part of the region.

Mr. Löwenstein, you have almost three decades of experience in the logistics industry. What motivated you to become a logistics specialist?

Andreas Löwenstein: I studied sinology – Chinese studies – and during that time I spent two and a half years in China. Other countries and cultures, people and markets have always fascinated me – which makes the logistics industry a perfect fit for me. It also gives me the opportunity to travel a lot and use my language skills. In the course of my career, I have lived in China, Japan, Singapore, Thailand and the U.S.  – all in all, I spent 31 years in these countries.

Have you previously worked in industries other than logistics?

Andreas Löwenstein: Before that, I worked in the tourism industry. Incidentally, these industries have a lot in common. Tourism is also about working with agents, coordinating projects together with many partners, and selling products. In both industries, you need creativity and the ability to find new ways of doing things – they make the difference between success and failure.

How is the Militzer & Münch business in Asia going?

Andreas Löwenstein: Business in Asia is going well. The region is very dynamic. But that also means that conditions are changing at breakneck speed. Anyone who is content with the status quo here will quickly be left behind by the competition. It’s part of our daily routine to deal with special economic zones, tariff-free trade between defined subregions or bilateral country partnerships – and while this often presents us with challenges, it also holds many opportunities. There are currently many more opportunities for investment in Asia than in Europe. For example, new ports are being built to attract industry. Of course, this is also associated with risks, because political tensions, trade restrictions and sudden obstructions to the goods flow are typical of the region. In addition, there are fluctuations in exchange rates here the likes of which have not been seen in Europe for a long time. Thus, product development, network expansion, and legal and currency issues are the focus of our work every day.

What are the Militzer & Münch goals in Asia?

Andreas Löwenstein: In regions like Central Asia, Militzer & Münch is a nose ahead of the competition; in most of Asia, though, we are still at the beginning. We are working on finding the right partners, formulating prudent goals, and investing with foresight. In addition to our branches in China, which have been established for a long time, we only have a small country unit in Sri Lanka and a start-up in Malaysia. We want to further expand our network and our activities within Asia.

Which business units are most successful in Asia?

Andreas Löwenstein: Transports between Asia and Europe as well as intra-Asian transports are both largely carried out by sea and air freight. We work with numerous small and large as well as national and regional shipping companies and airlines. Road and rail transports within Asia are reaching their limits due to the geographical givens. There are still development opportunities here. However, due to the specific expertise of our Militzer & Münch colleagues and, of course, of InterRail, we have an advantage over our competitors, especially in rail transport between Asia and Europe – here, we see great potential to position ourselves even more strongly in the Asian market. The rail market is currently booming, and even road transports from China to Europe have recently become part of our portfolio.

How has COVID-19 affected Militzer & Münch’s business in Asia?

Andreas Löwenstein: Of course, the economic volume decreased, and the market slump in Europe was clearly felt here – especially in comparison to the past years. However, this applies to the entire logistics industry. In particular, we have seen a significant decline in the transport of spare parts for aircraft. This was particularly felt by our colleagues in Hamburg and Beijing, because less air traffic during the pandemic also means that fewer spare parts are needed. However, the Asian market is so dynamic that we were able to cope well with these declines. Even during the pandemic, a lot is happening in Asia and there are plenty of opportunities. In the meantime, flights within China are operating almost exactly as they did before the pandemic.

What has changed for you personally since the pandemic began?

Andreas Löwenstein: The pandemic showed me how much is feasible without traveling. Video conferencing has become established in recent months – it saves a lot of time and money. Nevertheless, logistics remains a people-to-people business. Personal contact with customers and colleagues is an essential part of it. I’m already looking forward to traveling in Asia again to maintain old partnerships and build new ones.

How do you spend your free time?

Andreas Löwenstein: I am very much interested in history and culture. Having lived in six different countries in my life and having traveled a lot, I have been able to indulge this interest extensively.

24/7 spare parts supply

St. Gallen, February 22, 2021. The Militzer & Münch Group offers a time-critical spare parts supply service at its location at Hamburg Airport, available around the clock, seven days a week. Especially in case of an “Aircraft on Ground” (AOG) alarm, customers make use of the service. Recently, Militzer & Münch has extended this offer to other industries that rely on time-critical spare parts deliveries – among them the maritime industry and agricultural machinery manufacturers.

The air freight office of M&M air sea cargo GmbH, which offers this service, is located in the immediate vicinity of Hamburg Airport. At present, one of the main focuses of the 26 employees is on aircraft spare parts. “Our current end customers are various regional and local airlines in China, Taiwan and India,” says Dirk Bukowski, Regional Manager North Germany. “We have now extended this service to other industries that rely on the short-term delivery of spare parts. These include the maritime industry, manufacturers of large vehicles such as combine harvesters and forklifts, as well as wind power plants and the respective workshops.” The special Militzer & Münch service can also be used for the import and export of high-value, low-volume products such as cell phones.

On duty, non-stop
The special feature of this service: Militzer & Münch assures its customers of a reliable 24/7 service, completely independent of the logistics service provider’s other workload. Shipping and warehouse stock of the Militzer & Münch branch office in Hamburg are steered via a control tower, which acts as an interface to the customers and partners.

“Our service is already attracting a lot of interest from the marine spare parts sector and from manufacturers of utility vehicles, who rely on an immediate response and the fastest possible transport in the event of an emergency,” says Jennifer Bastkowski, Branch Manager Airfreight. “Our team can access our own warehouse directly – which has not been the norm in the industry for a long time. The warehouse is connected to our office and equipped with pallet racks and an innovative warehouse management system. It is located just two kilometers from Hamburg Airport. Thanks to all these factors, we can process urgent orders within a very short time.”

Stable despite the pandemic
During the Corona pandemic, there is an above-average number of orders for spare parts that are classified as extremely urgent and have to be dispatched immediately – often outside normal working hours or on weekends and holidays. As a result of the Corona crisis, there is a much greater amount of work involved in booking orders. “In the periods leading up to the pandemic, we transported a significant portion of our air cargo as so-called “belly loads” aboard passenger aircraft that departed at a very high frequency,” says Jennifer Bastkowski. “The restrictions on passenger air traffic due to COVID-19 have ensured that this cargo space is largely eliminated – especially on the long-haul route to China.”

Thus, the rapid dispatch of time-critical spare parts constitutes a challenge, since for shipments of this type there are currently almost only cargo flights available, which, however, operate irregularly during the pandemic. COVID-19 has thus created some hurdles that make order planning more complex: Flight connections and the rates charged for them have to be checked by the Militzer & Münch team for each individual order, and coordinated with the contacts abroad. M&M air sea cargo GmbH was able to master these challenges and stand its ground in the market, despite the Corona pandemic.

New location in Austria

St. Gallen, October 1, 2020. Starting today, the Militzer & Münch Group operates a branch office in Austria. The team at the new Vienna office is active in sales and operations, with a focus on logistics services and rail transports for the markets in Central and Eastern Europe.

With the new office at the Vienna DC Tower, the Militzer & Münch Group adds to its network another important logistics hub at the heart of Europe. “Vienna is one of the major trans-shipment hubs for goods in Central Europe”, says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia, Business Development Switzerland, Militzer & Münch Holding AG. “For the time being, the office is set up as a foreign branch of M&M Militzer & Münch AG, Switzerland. Plans are to found an independent country unit in Vienna at a later date.” The team at the Austrian capital comes with lots of experience and concentrates on the Militzer & Münch core markets; these include Central Asia, the Caucasus, Russia, and the Maghreb. The objective is to especially develop East-bound rail transports.

Austria boasts a stable economy, and the Vienna region has always been a successful economic hub in the trade between West and East. The new team is led by Branch Manager Nikolay Gueorguiev. He was with Far Freight / Gebrüder Weiss, and most recently with the CJ ICM Logistics Group.

Militzer & Münch Dubai is well on course

Since the reorientation of the M&M country unit in Dubai in 2017 by a new management team, Militzer & Münch has successfully expanded its business and tripled its workforce. In the meantime, the team has extended its service-portfolio to provide customers with a comprehensive range of services pertaining to transportation and storage.

Militzer & Münch has been able to significantly expand its Dubai location in recent months. It was only in October 2018 that the team moved from Dubai Airport to the port in Jebel Ali Free Zone (JAFZ), where it has been operating a warehouse ever since. There, employees can coordinate the loading of containers themselves and offer additional services such as storage, transports to and from India and the Middle East, or the import of flavors for the tobacco industry.

“The colleagues are intimately familiar with the local market and always give proof of high commitment.”

Nikolaus Kohler
Regional Managing Director Middle East / Central Asia, M&M Militzer & Münch International Holding AG

“Since 2018, the customer base and the service portfolio have grown enormously,” says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia, M&M Militzer & Münch International Holding AG. “An important part of our business in Dubai are warehousing services and distribution for local customers. For example, we very often transport spare parts for boats and ships, and printer consumables.”

A new office for customer service 

Another milestone: Militzer & Münch Dubai has opened its own sales office in the city. “This allows the team to concentrate even more on customer service. A major part of the business is regional transportation for a globally active food company. The team is also currently developing further logistics solutions for the region and for the CIS countries. The employees are also in charge of all questions regarding the Militzer & Münch Dubai air and sea freight services.

“These great developments were possible above all because we have a great team on site in Dubai,” says Nikolaus Kohler. “The colleagues are intimately familiar with the local market and always give proof of high commitment. We certainly owe our success also to the fact that Militzer & Münch Dubai is well connected locally, while at the same time having access to the international Militzer & Münch network.”

New office in Vienna

On October 1, Militzer & Münch started operating a branch office in Austria. The team at the new office in Vienna is active in both operations and sales, offering Austrian companies an ideal access to the markets in Central and Eastern Europe.

With the new location at Vienna’s DC Tower, Militzer & Münch is expanding its geographic coverage at the heart of Europe and intensifying its proximity to local customers. For the time being, the office is run as a foreign branch of M&M Militzer & Münch AG, Switzerland – with the aim of turning into a country unit in its own right at a later date. From the Austrian capital, the experienced team concentrates on the Militzer & Münch core markets of Central Asia, the Caucasus, Russia and the Maghreb, with a special focus on rail transport.

Austria boasts a stable economy, and the Vienna region has always been a successful economic hub in the trade between West and East. Under the management of Nikolay Gueorguiev, the local Militzer & Münch team will help to successfully lead the Militzer & Münch Group towards post-corona growth. Nikolay Gueorguiev previously worked for other well-known international logistics companies.

Do you have any questions about the new Vienna office? Please feel free to contact us:

M&M Militzer & Münch AG
Branch office Vienna
Regus Business Center
DC Tower, 30. OG
Donau-City Straße
1220 Vienna, Austria
Email: nikolay.gueorguiev@mumnet.com
Phone: +43 1 2055 5171 -70

The course is set for growth

In October 2019, Militzer & Münch founded a joint venture with the Serbian logistics company Invictus System Transport & Logistics D.O.O. With this move, Militzer & Münch further expands its existing network in the Balkans. Now, the Serbian Militzer & Münch organization is celebrating its first anniversary – and is looking ahead with confidence: Their goal is to be among the leaders in the Serbian transport and logistics sector within the next two years.

After a year of intensive work, the course is set for growth at Militzer & Münch Serbia. The Serbian Militzer & Münch unit operates five offices in Serbia. The head office is in Dobanovci, where the logistics service provider offers its whole service portfolio. Additional offices are in Belgrade, Velika Plana and Pozega, where the Serbian country unit provides customs clearance services. At an office in Leskovac, the M&M Serbia team offers customs clearance services as well as transportation. Militzer & Münch Serbia currently uses 5,000 square meters of rented storage space for its operations in Dobanovci. “Business is developing well, and we will move into an additional 5,000 sqm storage space by November 1. Due to our growth and the market demand, we are planning to operate our own distribution center in the future”, says Nikola Vasiljevic, COO Militzer & Münch Serbia

Quickly established

The 80 employees process circa 1,000 orders per month; they generated a turnover of around twelve million euros last year. “It is thanks to the great commitment of our team in Serbia that we were able to establish ourselves in the market so quickly”, says Filip Simovic, CEO Militzer & Münch Serbia. “The courageous decision to start the joint venture last year was the right one – now we want to further expand our business.”

Before the joint venture was founded, Militzer & Münch was largely unknown in the Serbian market. A customer base had to be built first. Today, the Serbian Militzer & Münch organization already cooperates with more than 150 customers. They include companies from the chemical, textile, automotive, pharmaceutical and beverage industries. Particularly successful are groupage services for imports from Germany, Austria and Italy, but also for exports to Montenegro, Northern Macedonia, Bosnia and Herzegovina, Kosovo, and Albania.

Militzer & Münch Serbia’s services include part and full loads, refrigerated transports, as well as customs and storage solutions. “Customer satisfaction is our top priority,” explains Filip Simovic. “With tailor-made logistics services, high quality and the commitment of our team, we clearly stand out from the competition.”

日本の新しいオンラインカジノは、その場所に固有のジオロケーションベースのゲームを提供しています.この機能は、プレイヤーにとって歓迎すべきイノベーションです。このソフトウェアを使用すると、オンライン カジノはボーナスやゲーム プレイをその場所に合わせてカスタマイズできます。日本政府は最近、ギャンブルの合法化を承認しましたが、特定の形式のみが許可されています.日本には合法的なオンライン カジノがないため、熱心なプレイヤーが合法的にギャンブルをすることが難しくなっています。彼らの多くは違法な賭けに目を向けます。

日本のオンラインビーナス ポイント カジノで最も人気のあるゲームはビデオゲームとスロットです。これらのゲームは簡単にプレイでき、戦略を必要とせず、プレイヤーはこれらのゲームを何時間もプレイできます。スロットは、ビデオ スロット、クラシック スロット、プログレッシブ ジャックポット ゲームなど、さまざまなバリエーションで提供されます。日本のオンライン スロットで運試しをしたい場合は、さまざまなゲームが提供されていることに驚くことでしょう。

日本でオンラインカジノを探すときは、サインアップボーナスを提供し、モバイルプラットフォームを備え、使いやすいカジノを探してください。また、多数のゲーム、すっきりとしたデザイン、便利な支払い方法も備えている必要があります。また、税金を気にせずに入金できることを確認してください。最も重要なことは、プレイヤーに安全で安全な環境を提供するオンライン カジノを選択することです。

多くの外国人プレイヤーは日本のオンラインカジノでプレーすることに懐疑的かもしれませんが、政府は日本でのオンラインギャンブルを規制するための措置を講じています.その結果、日本のプレーヤーにサービスを提供する国際的なブランドが数十あります。実際、日本のオンラインカジノの多くは多言語対応しています。決定を下す前に、それぞれをチェックする価値があります。

日本ではオンライン ギャンブルは違法ですが、法律を回避して日本でオンライン ギャンブルを行う方法がいくつかあります。まず、日本にお住まいの方は、政府のウェブサイトでオンライン ギャンブルが許可されているかどうかを確認してください。政府は以前、ギャンブルを全面的に禁止していましたが、近年は緩和されています。たとえば、スポーツ賭博は日本では合法です。

次に、入金する前に、カジノが本人確認を提供しているかどうかを確認してください。写真付き身分証明書または住所文書をアップロードする準備ができている限り、プロセスは簡単で安全です。その後、入金を続行できます。日本の正規のオンライン カジノでは、ゲームを使用する前にこの認証が必要になります。

最後に、安全な評判のカジノを選択してください。日本のオンラインカジノでプレイすることは危険を伴う可能性がありますが、日本の多くのオンラインカジノはライセンスを取得しており、プレイヤーに安全な環境を提供しています.安全性とセキュリティが心配な場合は、SSL 証明書を探してください。一部のサイトには、責任あるギャンブルの証明書さえあります。

“The courageous decision to start the joint venture last year was the right one – now we want to further expand our business.”

Filip Simovic
CEO Militzer & Münch Serbia

However, the pandemic does not leave the Serbian Militzer & Münch unit unaffected. “We have seen declines especially in the automotive and chemical sectors,” says Nikola Vasiljevic, “while demand has gone up enormously elsewhere: In the pharmaceutical and food sectors, there were increases of up to 60 percent – and we are also seeing growing interest from our customers in our cold chain capacities.”

Air and sea freight next

The logistics service provider plans to expand business even further. “In 2021, we want to step into the air and sea freight business, as these segments offer enormous potential,” says Nikola Vasiljevic. “An important project is also planned in rail transport. Serbia is a bridge to the EU – many goods reach Western Europe via our region. Which is why, together with the Militzer & Münch Group, we plan to establish a train connection between China and Serbia, routed via Budapest. We are already in the process of preparing a pilot train for the product.” With these big plans for the second year, the Serbian unit looks to the future with optimism.

New distribution center in Minsk

In October 2020, Militzer & Münch took into operation a new distribution center in the north-east of the Belarusian capital Minsk. The 2,000 square meters facility will be used mainly for express goods handling.

“The new logistics terminal gives us the opportunity to further strengthen our position on the Belarusian market,” says Victor Blazhukevitch, Managing Director of Militzer & Münch Belarus. In the future, the new property will be used mainly for handling express goods on an area of 2,000 square meters. A small part is also designated for the long-term storage of pallets and the handling of general cargo. The distribution center is ideally located in the northeast of the Belarusian capital near the Minsk MKAD beltway.

Currently, Militzer & Münch Belarus counts about 400 employees working at 15 locations throughout the country. The company handles groupage, part and full loads and express shipments using its own fleet of trucks. The portfolio of Militzer & Münch Belarus also includes services in the field of air and sea freight and customs clearance as well as hazardous goods and heavy lift transports.

Important hub

Belarus offers great potential for the Militzer & Münch Group, both in terms of the local economy and as a transit country between the Eurasian and the European Unions. The industrial country is an important hub in the Belt and Road Initiative between Asia and Europe. “Belarus is a preferred location for industrial, trade and logistics enterprises,” says Victor Blazhukevitch. Germany is among the country’s most important trading partners.

50 years of Militzer & Münch Greece

Militzer & Münch founded the country unit in Greece on October 1, 1970. The company has been active there for almost 70 years, as Militzer & Münch’s first office abroad was established in Athens in the 1950s. 

Were it not for the COVID-19 pandemic and the corresponding restrictions on contact, the company would have several reasons to celebrate this year: in spring, Militzer & Münch turned 140 years old, and October marked the 50th anniversary of the founding of the country unit in Greece.

Greece was the place where Militzer & Münch moved into its first office abroad: By the 1950s – almost 70 years ago – the company already had its own agency in Athens. Until 1970, further offices followed in the important port cities of Thessaloniki and Volos. Even then, the Greek team offered numerous import and export services by land, air and sea as well as customs and warehousing services. These included, for example, consolidated rail transports from Germany to Athens.

One of the more recent milestones of the country unit: in late 2018, Militzer & Münch Greece moved into a new distribution center, merging various warehouses at the Aspropyrgos site near Athens. In addition to the almost 14,000 square meters facility in Aspropyrgos, the company continues to operate at its second location, in Thessaloniki (4,400 square meters).

To keep up to date with our milestones and news, please feel free to connect with us via LinkedIn.

 

A new product for Asia-Europe traffics

As a result of the COVID-19 pandemic, capacities in cargo air traffic decreased; departures were also reduced in container shipping. Therefore, the German M&M air sea cargo GmbH has developed an alternative transport option for its customers, which ensures the goods traffic between China and Europe. Since April, regular truck transports have been connecting the People’s Republic of China and Europe. A transport mode especially e-commerce companies are using.

“When it became apparent that COVID-19 would affect all of us for a long time, we realized that an alternative to traditional air and sea transportation was urgently needed,” says Jie Li, Trade Lane Manager Greater China, M&M air sea cargo. “The Trade Lane Management teams in Germany and China developed the new product together. Our Rail team in Düsseldorf is responsible for the coordination and handling of the truck transports, as the colleagues are very familiar with the China–Europe route thanks to their many years of experience with rail transports.”

 

 

Route is adapted to the situation

The FCL transports are currently routed directly from the factory through northwest China to the border cities of Alashankou or Khorgos, then via Moscow, Minsk and Warsaw to the end customer in Germany – a 13,000-kilometer distance. The transport usually takes 13 to 15 days. “The spread of COVID-19 has a strong impact on our transit time,” says Jie Li. “We have to factor in a delay of around three to five days.” If everything goes well, reloading and customs clearance at the Chinese border take two to three days at this time. Depending on how the situation at the border develops, the M&M air sea cargo team will adjust the route together with the local partner in order to always offer customers the fastest possible transport.

The transport option is suitable for all types of freight, especially for dangerous goods. Products with batteries – such as e-bikes, which are currently in high demand in some European countries – cannot be transported by rail. For valuable goods that are transported in a closed trailer, transport by truck is just as suitable as for high-volume, urgent shipments, for instance, personal protective equipment. At the moment, M&M air sea cargo transports lots of goods for e-commerce companies via the China–Europe route by truck.

Although transport by air and sea freight is getting back to normal, road transport on this route remains a sensible alternative: it takes about 20 days less than sea freight and is 30 to 60 percent cheaper than air freight. “Especially for the German market, the product is still new; many customers are curious about it,” says Jie Li. “For our existing customers, the new option is not only a good alternative to air, sea and rail transport, it also opens up great opportunities for us as a team to expand our business and convince new customers of our services.”

 

 

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.”

“We are able to react to a crisis fast and appropriately”

Alexei Kovalenko, Guillaume de Laage de Meux and Nikolaus Kohler – as members of the Group Management of M&M Militzer & Münch International Holding AG, they have a close eye on the business of the individual country units. In an interview, they report on how the COVID-19 pandemic has affected the group so far, and how the demand for transport is developing in different industries.

The Militzer & Münch Group is active in 29 countries. The extent of the pandemic varies locally, as do government regulations. How are you dealing with the situation?

Alexei Kovalenko: The safety of our employees has top priority. With the exception of some warehouse space, we count among the asset-light companies. Thus, it was relatively easy for us to have many employees working from home. All things considered, we always act in accordance with local requirements and regulations. But of course, we notice restrictions and decreased transport volumes in international goods traffic. In the West, government support has helped us a lot, including in France and Germany. This has somewhat mitigated the decline in orders. In Germany, for example, we put some employees on short-time working when air traffic came to a virtual standstill and our freight could not be transported on board passenger aircraft.

Nikolaus Kohler: The Militzer & Münch management is struggling with the challenges in all 29 countries and is taking the necessary steps to master the extraordinary situation. Especially in Central Asia, governments have imposed rigorous measures in some cases. In these countries in particular, I assume that not all transport companies will make it through the crisis. However, the Militzer & Münch Group is well positioned – it remains to be seen whether the crisis will lead to a market shakeout from which individual logistics companies will benefit.

“We are a people’s business. We all had to adapt and use virtual means of communication to maintain contacts.”

Alexei Kovalenko
Chief Financial Officer, TransInvest and Militzer & Münch; Speaker of the Militzer & Münch Group Management

 

Alexei Kovalenko
Nikolaus Kohler
Guillaume de Laage de Meux

 

How did business develop when more and more countries announced the lockdown?

Guillaume de Laage de Meux: In France, the lockdown was a drastic experience for the entire industry. On March 16, the French government decided that the population should stay at home and restrict their mobility – in April and May our activities fell by 50 percent. At that time, we put our efforts into securing our unit financially. We were able to absorb the losses with the help of loans from French banks. In the meantime, we have managed to somewhat stabilize our turnover again. Since July we have had a good order situation – although not yet back to the level seen before the pandemic. How things will develop over the next few months depends, among other things, on the impact of the second wave of the pandemic.

Nikolaus Kohler: The pandemic has also had a major impact on our business in the Central Asia region. Some countries ignored the situation for a long time, others closed their borders immediately and with all the consequences this entailed. This not only led to an almost total social standstill, but also to a dramatic slump in exports and imports. In Uzbekistan, for example, imports from the Far East continue, but trade with Europe has fallen sharply. The government has halted infrastructure projects and is currently investing more in the healthcare sector. Turkmenistan closed its borders, with the exception of the railroad borders and the Baku-Turkmenbashi ferry. International trade and imports have almost come to a standstill. Due to this total lockdown, the international oil companies have also withdrawn from Turkmenistan – which caused our crane rental business to almost come to a halt. In Georgia and also in Azerbaijan, the buying mood of the population has fallen sharply, which affects domestic transports and thus also our order volumes. In Georgia, there are parliamentary elections this year, but at least the borders have been open again since October – imports and exports are running again. In Azerbaijan, COVID-19 is under control, at least for the time being, but the conflict over the Nagorno-Karabakh region has had a major impact on the country. Our teams in Turkey, however, are coping very well with the crisis. Despite the lockdown, they were able to close these past months with a positive result.

How has the demand of individual industries developed?

Guillaume de Laage de Meux: In the automotive and textile sectors in particular, we experienced a temporarily sharp decline in transports – especially in the South West Europe and Maghreb regions. Business is slowly stabilizing again, but has not yet returned to normal. It remains to be seen how the coming months will develop.

Alexei Kovalenko: China was the first country to “awake” from the lockdown. Together, the teams in Germany and China carried out several airfreight transports of protective masks etc. Demand from the chemical industry that produces disinfectants, detergents and cleaning agents also increased. These positive developments helped to at least somewhat mitigate the decline in orders from other industries. One thing is quite clear: international goods trade needs to continue to pick up speed. It might well be that some companies rethink their supply chains and go back to more local sourcing again as a result of their experience with the pandemic. But this is not going to happen overnight.

“The business of our unit EMEX in Kazakhstan is developing well, our customers have increasingly requested CEP shipments for e-commerce.”

Nikolaus Kohler
Regional Managing Director Middle East / Central Asia, Business Development Switzerland, M&M Militzer & Münch International Holding AG

How has the pandemic changed your daily cooperation with customers?

Alexei Kovalenko: We are a people’s business; we live from the intensive contacts with our customers. The fact that personal meetings with customers and potential customers are not possible or only possible to a very limited extent impairs business. We all had to adapt and make use of virtual communication tools to maintain contacts. In this field,  fundamental rethinking is surely required, as obviously this challenge is likely to remain with us for some time yet.

Nikolaus Kohler: In Kazakhstan, however, the limited contact opportunities have not prevented us from expanding our CEP business. The business of our EMEX unit is developing well, and our customers have increasingly requested CEP shipments for e-commerce. One reason is certainly that shopping centers are closed. This is what drives the online B2C business.

“All in all, our actions so far during the pandemic have strengthened my belief that Militzer & Münch is a truly agile company.”

Guillaume de Laage de Meux
Managing Director Militzer & Münch France, Regional Managing Director South West Europe / Maghreb and member of the Militzer & Münch Board of Directors

Is a cautious outlook on the coming months possible?

Alexei Kovalenko: At the end of the first quarter of 2020, our outlook for the rest of the year was pessimistic. However, this changed from June onwards, and July and August went reasonably well. Demand has recovered, and the volumes transported have increased. We have not yet recorded any significant payment defaults or even bankruptcies among our customers. But we need to remain vigilant. We are currently planning for 2021 – with the first three quarters of 2020 always in mind.

Nikolaus Kohler: The development in some countries confirms that our group is well positioned. Our still relatively young joint venture in Serbia, for example, has been on a growth course since it was founded last year. The opening of the logistics facility in Belarus is a positive signal, too. Dubai is also developing well – thanks in part to the substantial business volume of our main customer from the food and beverage industry.

Guillaume de Laage de Meux: All in all, our actions so far during the pandemic have strengthened my belief that Militzer & Münch is a truly agile company. The last few months have shown that we are capable of reacting quickly and appropriately to a crisis. That is why I am very proud of our team and look forward to the future with confidence.

M&M Strengthens Position in Maghreb Region

A new location for automotive services in Morocco, a new groupage line from France to Bejaïa in Algeria – Militzer & Münch continues expanding operations in the Maghreb countries.

With the additional location in Morocco, Militzer & Münch is ideally positioned for the automotive sector. The 1,100 square meter warehouse is situated in Northern Morocco, just 30 kilometers from Tangier Automobile City and 60 kilometers from Tanger Med, the port. To operate the warehouse, Militzer & Münch founded M&M Automotive Logistics, a separate company.

The advantages for the customer: the location within Tangier Free Zone allows faster customs procedures. Moreover, Tangier Free Zone is optimally connected; in vicinity to the international airport, the Free Zone is also connected to Tanger Med and the highway system.

The Morocco team cooperates closely with Militzer & Münch France – M&M France is registered with the major European automotive manufacturers as logistics service provider and offers such services also in France. “Militzer & Münch France owes its position as market leader on the Europe-Maghreb trade lane to good cooperation with its country units”, says Guillaume de Laage de Meux, Managing Director Militzer & Münch France and Regional Managing Director South West Europe / Maghreb. “The opening of the new location is the most recent example of our cooperation with Militzer & Münch Morocco. Strengthening our position in the field of aviation and automotive logistics is part of our strategy.”

Algeria Transports Expanded

On February 29, Militzer & Münch France moreover launched a new groupage transport service to Bejaïa, a port in Algeria. With Algiers 2009 and Oran 2018, there are now three direct groupage transport lines from Marseille to Algeria. This service meets the rising demand for exports to the country’s east. Militzer & Münch offers two groupage departures per month with direct connection from Marseille and a five-day transit time. The goods are ungrouped in a dry port at Tixter, only six kilometers away from the East-West highway, the major road axis in Algeria. Plans are to launch service also to Annaba on Algeria’s northeastern coast soon.

What is an Advanced Supplier Store?

An Advanced Supplier Store (ASP) is a local logistics solution that allows logistics service providers to offer their customers just-in-time delivery according to a number of specifications. For the customer, the ASP guarantees reactivity, flexibility and reliability. In the automotive sector a widespread logistics solution, ASP allows industrial enterprises and constructors to secure their supply chains, to avoid production stoppages, and to optimize and monitor their costs.

At the new ASP, Militzer & Münch Morocco offers the following services:
•    IT supported warehouse management;
•    bonded warehouse:
•    order picking management;
•    kitting;
•    co-packing;
•    distribution and pick-up within and between Free Trade Zones

“We Want to Be the Market Leader Two Years From Now”

In an interview, Filip Simovic, CEO, and Nikola Vasiljevic, COO of Militzer & Münch Serbia, talk about their ambitious growth plans. In October 2019, Militzer & Münch founded the joint venture with Serbian logistics company Invictus System Transport & Logistics D.O.O. to further develop its network in the Balkans.

Mr. Vasiljevic, how is the joint venture perceived in the Serbian market?

Nikola Vasiljevic: Before the joint venture was founded, Militzer & Münch was more or less unknown in the Serbian market. We had first of all to acquire a customer base and win the customers’ trust. At this time, we focus on establishing Militzer & Münch more firmly in the national logistics market. 

Mr. Simovic, you have set yourselves an ambitious goal for the Serbian logistics market. How are you planning to reach it?

Filip Simovic: Our objective is to be the market leader in Serbia two years from now. Customer satisfaction is our number one focus. We analyze the demand in the Serbian logistics market and adapt our services optimally to our customers’ requirements. All our logistics services are customized. Our top-quality performance and the commitment of our team already distinguish us from our competitors; there is high demand for our logistics solutions. Since the joint venture was founded last autumn, business has developed well, and we are confident that we will be able to reach our goal.

“Our top-quality performance and the commitment of our team already distinguish us from our competitors.”

Filip Simovic
CEO Militzer & Münch Serbia

 

Nikola Vasiljevic, COO Militzer & Münch Serbien
Filip Simovic, CEO Militzer & Münch Serbien

 

What have been your biggest successes so far?

Nikola Vasiljevic: From the beginning, we used substantial advertising campaigns to market each of our services – they include road transport, customs clearance and storage. With our marketing campaign, we have already been able to position ourselves as a serious player in the Serbian market.

We are very proud to see that our services are in such high demand after such a short time. Especially the groupage transport we launched from Germany, Austria and Italy is a very big success for us. Recently added were Militzer & Münch groupage traffics for exports to Montenegro, Northern Macedonia, Bosnia and Herzegovina, Kosovo and Albania.

How many Militzer & Münch locations are there in Serbia?

Filip Simovic: One office is in Dobanovci – an industrial zone near Belgrade – and the other is at Leskovac, in the south. In Dobanovci, we are currently renting a 1,000 square meter storage area for customs clearance services, and we are constructing our own warehouse and office premises at this time. The property will cover 10,000 square meters. In May/June we will already be able to take into operation the first 5,000 square meters.

How is the cooperation with other Militzer & Münch country units?

Nikola Vasiljevic: We soon realized that we can always cooperate with the entire Militzer & Münch Group in a reliable and trustful way. As many German companies have production plants in Serbia, we often handle projects together with the German Militzer & Münch unit. Especially the collaboration with the German Militzer & Münch branches in Stockstadt, Nuremberg and Hof works excellently. The German colleagues give us their full support.

What services are you offering in Serbia at this time, and what services are planned for the near future?

Filip Simovic: At the moment, our focus is on road transports – part loads, full loads and refrigerated transports. We also offer the whole range of customs services and warehousing. We aim to extend our activities also to air and sea transport as well as rail freight.

What industries are you serving?

Nikola Vasiljevic: Most of the transports we handle are for companies from the chemistry, textile, automotive, pharmaceutical and beverages sectors. There is lots of investment in Serbia at this time, mainly from abroad. Most investors are from the automotive industry, and to a large extent, they are from Germany. Which is why we at Militzer & Münch Serbia place a strong focus on this sector.

Have you already done first transports in the field of project logistics?

Filip Simovic: In November 2019, we successfully handled the first project transport. For a renowned Serbian textile manufacturer, we transported big machinery for textile production. I am very proud of my team: they worked with untiring commitment to meet the customer’s expectations.

140 Years of Militzer & Münch

In 1880, Richard Militzer and Werner Münch merged their forwarding companies and founded the Militzer & Münch rail forwarding company in Hof, Bavaria. In the course of the years, the company developed into a worldwide operating logistics services provider with about 2,100 employees today. On 1 April 2020, Militzer & Münch celebrate their 140-year anniversary. 

“We look back on 140 eventful and successful years”, says Michael Albert, President of the Board of Directors of M&M Militzer & Münch International Holding AG. “Over the decades, we have again and again opened up new fields of logistics, with our pioneering spirit, with plenty of courage and of course with lots of committed employees.”

From Horse and Cart to the Truck Fleet

It all began with Richard Militzer and Werner Münch founding a joint company at Neuer Bahnhof [engl. New Station] in Hof. With the Bavarian and Saxonian railway lines now joined, new long-distance railway connections were available to the young company far beyond the operating range of horse and cart. The limited range of the horse-drawn vehicles required creating a tight branch network, connected by the railway. The first regional branch offices were founded. For the local porcelain, glass and textile industries, Militzer & Münch opened up markets in Europe, for instance in Italy and England.

The first M&M truck did regular traffic between Hof and Oelsnitz, a 30-kilometer distance, at the beginning of the 20th century. “For us today, it is difficult to imagine, but the purchase of the first truck and thus the switch-over from horse to motorized vehicle must have been something really special at that time”, Michael Albert says. “Nowadays, we have hundreds of trucks and trailers, from our own fleet or chartered, running for us.”

Venturing into New Markets

Militzer & Münch continued growing steadily. At the time of the 50-year anniversary in 1930, the company counted 40 commercial employees and 17 blue collar workers. After World War II, Militzer & Münch added sea and airfreight to its portfolio and opened a branch in Hamburg plus the first airfreight office Frankfurt Airport. In 1951, the first M&M unit abroad was founded in Athens, Greece. In the countries of Eastern Europe, in the Middle East, in Central Asia and China, Militzer & Münch was a trailblazer in developing international forwarding and logistics business. Decades of robust growth began. In 1980, the individual country units were united under the umbrella of a holding in St. Gallen.

 

 

Timeline

•    1880: Founding of Militzer & Münch
•    1892: Founding of the first regional branch office
•    1949: M&M appointed official IATA agent
•    1951: Opening the first office abroad in Athens, Greece
•    1962: Opening the first airfreight center at Frankfurt Airport
•    1980: Founding of M&M Militzer & Münch International Holding AG in St. Gallen
•    2017 & 2018: Founding of country units in Algeria and Sri Lanka
•    2019: Founding of a joint venture in Serbia

At Home in the World

With circa 100 locations in 28 countries and numerous partners, Militzer & Münch today offers forwarding and logistics services around the globe – especially opening up
difficult-to-access markets for its customers. Thus, in the past few years, Militzer & Münch took into operation its own country units in Algeria and Sri Lanka. Intensifying the Central Asia and Far East traffics is also essential part of the growth strategy. For many years already, Militzer & Münch has been operating its own branch offices in almost all countries along the New Silk Road; among them, locations in Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan, Russia and China.

“We want to convince our customers also in the future with our unbreakable enthusiasm and our first-class performance, and further expand our range of services”, says Michael Albert. “The anniversary is also occasion for us to look towards the future. For values like quality, responsibility and security count now as they did then.

140 years – an opportunity also to give thanks to our employees and especially to our customers.”

“We Are the Experts for Difficult Markets”

The Militzer & Münch Group aims to continue on its growth path in the coming years.  In an interview, Alexei Kovalenko, member of the Militzer & Münch Group Management, explains where the biggest growth potential lies. 

How would you describe Militzer & Münch in a few words?

Alexei Kovalenko: With a great deal of pioneering spirit, a small forwarding company, founded 140 years ago, was turned by the founders and their successors into an international logistics services provider that has become an expert especially in niche markets. Still family-owned and independent, we want to live this entrepreneurship also in future and open up further difficult markets for our customers. While, of course, bearing in mind trends and changes owed to political and economic developments, we at the same time bank on traditional values such as loyalty, integrity, and respect.

What are the strengths of Militzer & Münch?

Alexei Kovalenko: For a long time already, we have been regarded as one of the leading logistics services providers in Eurasia and North Africa. This geographic view, however, sells us short: We are the specialists for difficult markets, we create individual transport solutions for our customers also under difficult conditions.

What distinguishes Militzer & Münch from its competitors?

Alexei Kovalenko: In some respect we are indeed practically unique: unlike our competitors, we operate our own country units with local management in difficult markets, for instance in Central Asia. Often, our international competitors only send ex-pats abroad, and the local competition lacks the international knowhow. Thus, to some extent, our local expertise combined with international standards makes us unique in the logistics sector.

Which markets and regions do you regard as promising?

Alexei Kovalenko: For us as a flexible medium size enterprise, both the classic trade lanes like Europe-Maghreb and China-Europe as well as the emerging markets are promising. We recently started an initiative to extend our activities to include African countries. In North Africa, we have our own country units, some of them for decades – but we are seeing that Ethiopia, for instance, is a promising logistics market, too. Over the next few months, we will analyze markets in Africa and examine the market situation and demand on the side of existing and potential new customers.

Another example is Southeastern Europe. We have achieved a strong market position in Bulgaria, but not in the neighboring countries. In 2019, we had the opportunity to enter into a joint venture with Invictus, a logistics company in Serbia, and business is developing well.  We want to continue on our expansion course also in other countries of the region.

In which business sector – road transport, airfreight, sea freight, project logistics – do you see the biggest growth potential?

Alexei Kovalenko: We can’t generalize and limit this to one segment. Our maxim is, it must be worth it. We don’t aim for growth at any price, for we offer quality service; a fair margin for high-quality performance must be possible. We regularly check our activities: which of them are profitable, which aren’t? The strengths and weaknesses of the individual Militzer & Münch companies – we operate local units from Morocco to China – have to be taken into account. Thus, on some trade lanes and for some services, we cooperate with selected external partners, which allows us to remain efficient and profitable.

Especially on the China-Europe trade lane, we are aiming to further develop intercontinental overland transportation, i.e. rail freight. More and more, sustainability and economic pressure are inducing importers and exporters alike to opt for the train instead of the plane. With transit times of ten or fewer days on this route, rail freight might become interesting also for the e-commerce sector. We keep an eye also on further developments in the Belt-and-Road Initiative – over the next years, there will be big opportunities for our customers, and thus for us, too.

Today, all eyes are on China for other reasons. From China, the corona virus has spread worldwide and especially in Europe. The current situation is an extraordinarily challenging one for each of us personally and for our economy. It is sincerely to be hoped that the spread of the corona virus can be slowed down by the numerous measures taken and that the global economy will soon recover.

The focus is on customer satisfaction. What distinguishes Militzer & Münch in this respect?

Alexei Kovalenko: Our customers rely on our meeting their often challenging requirements: products with complicated handling, not-so-everyday destinations. Therefore, we bank on competence on developing our specialists, and on local market expertise. Our customers don’t contact the company headquarters, but our local branch offices. They want to work with one defined contact person who manages their project from beginning to end, who keeps abreast of matters and takes responsibility. We are therefore also keen on enhancing the knowhow of our teams; the relaunch of the M&M Talent Management Program ensures the competence of our junior executives. We support the expertise of our teams with our robust and flexibly adaptable IT processes. Our in-house IT company for instance designs individual tracking and tracing solutions for our customers.

“Unlike our competitors, we operate our own country units with local management in difficult markets, for instance in Central Asia.”

Alexei Kovalenko
Member of the Militzer & Münch Group Management

Could Militzer & Münch intensify the cooperation between the individual country units and increase growth that way?

Alexei Kovalenko: Our country units generate their business locally and “live” from their local customer base. At the same time, they can benefit from the strengths of other Militzer & Münch companies, without being forced to cooperate, on the basis of the “right of first refusal” principle. There are cases in the Group where this works well.

At this time, the Militzer & Münch Group is led by Group Management. What are the plans for the coming months?

Alexei Kovalenko: The Militzer & Münch Group is run on a decentralized basis – this has developed over time and is part of the corporate culture. The operational responsibility for results and success lies with the country units and the regional managers, who together form Group Management, i.e. the extended management of the group; together with the Board of Directors they lead the Militzer & Münch Group. In charge of coordination and alignment between the regions is the Speaker of Group Management. (Editor’s note: at the beginning of the year, this task was assigned to Alexei Kovalenko.)

Topics concerning the entire Group such as business development and digitization regularly feature on the agenda of the joint meetings of Board of Directors and Group Management.

This modus operandi has proved successful over the past few months – and we will continue working that way also in the coming months.

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.