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.

For coffee lovers

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

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

Convinced in Every Respect

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

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

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

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

Freshly Polished

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

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

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

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

Express delivery for the aviation industry

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

A Closer Look at AOG

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

Acting fast

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

 

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

Yue Sun
Militzer & Münch China

 

Cross-national cooperation

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

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

 

Militzer & Münch China – Strong in Airfreight

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

State-of-the-art IT solutions

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

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

Reliable transport

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

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

Militzer & Münch Expands Network in Africa

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

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

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

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

 

New Trade Routes

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

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

 

Senegambia Bridge Opens New Route

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

Militzer & Münch and Invictus found Joint Venture in Serbia

St. Gallen, 1 October 2019. The Militzer & Münch Group has founded a joint venture with Serbian logistics company Invictus System Transport & Logistics D.O.O. With this step, Militzer & Münch is further expanding its network in the Balkans. Both partners are planning to turn the joint venture into a leading forwarder in Serbia within the next two years.

Militzer & Münch and Invictus, a family-owned enterprise, registered the joint venture as M&M Militzer & Münch Transport & Logistics D.O.O. on 25 September. Managing Director of the joint venture is Filip Simovic. Until now, he headed the transport operations at Invictus, together with Dragan Simovic, a former Country Executive of a renowned international logistics corporation. On the part of Militzer & Münch, Sacho Todorov, Regional Managing Director South East Europe, is in charge of the joint venture.

Serbia as a bridge to EU

“With this joint venture, we add to our network a country that optimally complements our locations in the South East Europe Region”, says Sacho Todorov. “Serbia is a bridge to EU, and is also of major geo-strategic importance in terms of the New Silk Road. As many German companies have production plants in Serbia, the joint venture is especially promising for our German country unit.”

The existing Militzer & Münch locations in the Balkans so far are Greece, Bulgaria and Romania. These Militzer & Münch country units already offer a wide range of logistics services.

“In Serbia, we will first of all focus on road transports”, says Filip Simovic. “Our services will comprise mainly export, import and customs clearance. In the near future, we are going to expand our portfolio, adding airfreight and sea freight, warehousing, intermodal traffics and project transports. Our objective is to develop the joint start-up within the next two years to become a leading forwarding company in Serbia. Plans are to strengthen our position in Serbia with further investments.”

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.”