United Airlines and Lufthansa to partner in international cargo operations

The announcement comes in the wake of a major move by Lufthansa earlier this year to elemenate hundreds of management level positions to cut payroll costs.

Transportation in the News

Hub Group announces plans to acquire Estenson Logistics
AAR reports U.S. carload and intermodal gains for week ending May 20
Ocean cargo Mega vessels may mean fewer port calls, but cleaner air
Freightos report takes deep dive into the ‘digitization’ of freight forwarding
Making the Case: A Modern-Day Transportation Management System
More Transportation News

Transportation Resource

Making the Case: A Modern-Day Transportation Management System
The modern day supply chain has become a competitive tool for companies of all sizes and across all industries. At the same time, the transportation industry looks drastically different than it did 20 years ago, when most transportation management systems (TMS) were originally designed.
All Resources
By ·

United Airlines (UAL) and Lufthansa Cargo have signed a joint venture agreement for extensive cargo cooperation on routes between the U.S. and Europe.

The contract signing initiates the implementation phase of the joint venture project, during which the carriers will align their cargo IT systems and business processes with the goal to implement Business Day 1 later this year.

The announcement comes in the wake of a major move by Lufthansa earlier this year to eleminate hundreds of management level positions to cut payroll costs.

According to spokesmen, the cargo joint venture partners plan to provide a wide range of benefits to shippers by cooperating on the availability of their capacity and aligning booking and handling processes.

Ideally, the carriers’ joint venture route network will provide greater flexibility and time savings for shippers with thousands of new route combinations and more than 600 direct connections per week between the U.S. and Europe.

If successful, the combined network offering may create additional benefits through access from either partner’s booking channels along with coordinated handling processes and transfers at numerous stations, said spokesmen for both airlines. 

Chuck Clowdis, managing director of transportation advisory for IHS Global Insight, told LM that the deal may “simplify” cargo bookings for U.S. logistics managers.

"Time will tell how the rate structures and seamless tracking can be implemented," he said. "A competitive service that makes for enhanced efficiencies along the Supply Chain typically results is success for shippers and receivers alike...and if course the carrier(s) involved."


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Unlock the Value of Your Supply Chain Through Embedded Analytics
Learn how embedded analytics can provide deeper supply chain intelligence and help you extract maximum value from data for your supply chain operations
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...