Kuehne+Nagel, a global logistics company, has announced the expansion of its facility in El Paso, Texas. The new site, located adjacent to the company’s existing facility, adds 20,252 m², increasing its overall capacity by 60%. 

Despite tariff uncertainty, global companies continue investing in nearshoring across Mexico and Kuehne+Nagel is expanding its capacity to support customers in building resilient supply chains. 

Strategically located at the border, the site is designed to accommodate the growing demands of customers for northbound and southbound movement of goods between Mexico and the United States. The new, bonded warehouse features 53 dock doors, 65 trailer spaces, front and rear cross-dock capabilities, as well as vertically racked storage locations.  

“Our existing 33,723 m² El Paso facility reached full capacity within a year, demonstrating strong demand for cross-border solutions,” said Joachim Goller, Senior Vice President Road Logistics North America. “This success underscores the need for scalable expansion to support our customers and new business while maintaining the high standards they expect. This investment further strengthens our market position at the U.S.-Mexico border and confirms that regardless of current geopolitical shifts, the nearshoring trend is alive.”  

Kuehne+Nagel has announced a strategic investment in a new fleet of prime movers in Thailand to meet the rising demand for reliable and scalable cross-border transportation across Southeast Asia. This initiative builds on the successful 2024 acquisition of City Zone Express, a well-established logistics provider operating across Malaysia, Singapore, Vietnam, Thailand, and China.

The fleet will be deployed in three phases: the first batch is already operational, while the second and third batches are scheduled for rollout in January and April 2026 respectively. Once fully deployed, the expanded fleet will include nearly 40 prime movers and 100 containers, giving customers greater capacity and flexibility to move goods efficiently across Southeast Asia.

David Roussiere, Managing Director of Kuehne+Nagel Thailand, Cambodia and Myanmar said: “Customers in fast-growing sectors like e-commerce and high-tech can benefit from customised road logistics solutions, including add-ons like real-time visibility and multimodal options. As supply chains evolve, we are committed to helping businesses build resilience, optimise costs and meet their sustainability goals.”

Thailand’s Ministry of Transport has committed over USD 64 billion to infrastructure development since 2022, including major investments in highway construction and logistics connectivity. The ASEAN Customs Transit System (ACTS) continues to streamline operations across Cambodia, Laos, Malaysia, Singapore, Thailand and Vietnam, playing a key role in ASEAN’s efforts to boost intra-regional trade and reduce transaction costs.

With this fleet expansion in Thailand, customers will benefit from faster response times and more reliable transport options to keep their supply chains moving smoothly.

Kuehne+Nagel opens its first independent office and warehouse in Hafnafjördur, Iceland. From the location at the harbour, a team of 13 experienced specialists will provide customers with services in sea and air logistics, as well as customs solutions.

Helgi Ingólfsson, Cluster Manager for Sweden and Iceland, says: “Iceland is a high-potential market, and we are committed to supporting customers in Iceland reach their growth potential as they can benefit from our expertise in navigating and planning their supply chains. While we have had a presence in Iceland for decades, this is the first time we have a fully independent operation, and I am proud to announce the opening today, adding to the global network of Kuehne+Nagel.”

Valdimar Óskarsson, Managing Director for Iceland, comments: “Having been active in the Icelandic market for many years, we are happy to join the Kuehne+Nagel family. Together with my team of industry experts within sea and air logistics, and customs, we look forward to contributing to Iceland’s import and export sector.”

Iceland’s export industries have seen significant growth with a surging tourism sector, contributing to a higher demand for imported general cargo. Also, the fish farming industry, which produced 54,800 tonnes of fish in 2024, is projected to further increase in the coming years.

In sea logistics, Kuehne+Nagel will offer services from Denmark, Sweden, Belgium, and The Netherlands for Less-than-Container-Load and Full-Container-Load, while export market will be focusing mainly on reefer containers meeting the demands of the fish industry. As the largest air logistics provider, Kuehne+Nagel Iceland will further strengthen the global team by offering connections to world markets through its perishable’s gateways in London, Amsterdam, and Liege with a focus on exports of farmed fish.

Kuehne+Nagel celebrates a significant milestone in its presence in Ecuador with the opening of a state-of-the-art logistics centre in Tababela, Quito. The new facility includes 2,280 sqm of refrigerated warehouses, 6,445 sqm of manoeuvring yard, 25 docks and 795 sqm of office space.

Since its founding in Quito in 1995, with just five employees dedicated to air logistics, Kuehne+Nagel Ecuador has experienced continuous growth. The acquisition of Master Transport in 2013 and Panatlantic in 2018 further strengthened its leadership in the perishable sector. Today, thanks to its development and expanded service offerings, the company ranks as one of the most comprehensive and versatile organisations in the country for international trade and supply chain management.

Diether Bohn, Managing Director for Ecuador, Colombia, Peru and Venezuela, says: "With this step, we reaffirm our commitment to the economic development of Ecuadorian trade and industry as a whole, by relying on the most advanced logistics solutions. Furthermore, integrating all Quito teams into a single location will foster stronger synergies, increase process agility and deliver a superior experience for both customer and employees.”

Currently, the company's primary solutions in the country include general and perishables air logistics services, cross-docking, airport storage and delivery, full container and consolidated sea freight as well as customs management. Additionally, Kuehne+Nagel offers decarbonisation options for these services.

“Over the past 30 years, we have transported thousands of tons of Ecuadorian products worldwide, and today we take the next step. This new facility not only marks an upgrade in infrastructure but also brings our vision to life, to become the most trusted supply chain partner supporting a sustainable future,” says Mónica Jimenez, Country Manager, Ecuador.

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To support its growth ambitions in Asia, Kuehne+Nagel opens a new 2,800 sqm Container Freight Station (CFS) in Bangkok, Thailand, strategically located near Laem Chabang Port.

Laem Chabang, Thailand’s largest deep-water port, is a vital gateway for international trade, particularly on the Asia-North America and Asia-Europe routes. By expanding its Less-than-Container Load (LCL) and integrated logistics capabilities in this location, Kuehne+Nagel aims to increase efficiency and lower the environmental impact of logistics operations. With the new CFS, Kuehne+Nagel provides faster and more efficient cargo consolidation and deconsolidation while the use of electric Vehicle (EV) transportation for all LCL pick-ups across Thailand reduces carbon emissions.

This investment aligns with the Port Authority of Thailand’s (PAT) vision to transform all its ports into a smart, sustainable hub by 2030. By integrating EV transportation, Kuehne+Nagel is actively supporting PAT’s carbon neutrality roadmap and broader infrastructure upgrades, contributing to the local development of Thailand.

“Laem Chabang Port plays a pivotal role in global trade and regional cargo distribution. As part of our Roadmap 2026, this investment reinforces Thailand’s role as a key logistics hub while driving innovation and sustainability in the global supply chain,” said David Roussiere, Managing Director of Kuehne+Nagel Thailand, Cambodia, and Myanmar.

Sanofi, a leading healthcare company with a presence in 90 countries worldwide, partners with Kuehne+Nagel for fulfilment, handling, and value-added services for pharmaceutical and consumer health products in Türkiye.

To enhance the efficiency of processes related to warehousing, handling, and value-added services such as serialisation and inking, Sanofi in Türkiye entrusts Kuehne+Nagel with managing the facility in Tuzla, on the outskirts of Istanbul.

Currently, Sanofi operates an 11,000 sqm facility equipped with temperature-controlled rooms (15-25°C), cold rooms (2-8°C), restricted access zones, quarantine areas, and more. With a storage capacity of up to 4,200 pallets of healthcare and consumer health products, the facility ensures timely delivery to patients across Türkiye.

“Our purpose at Sanofi is to improve people’s lives around the world, by chasing the miracles of science. In line with this mission, we sought a trusted partner to deliver reliable 3PL warehousing logistics services, allowing us to focus on our core business. Sanofi’s successful collaborations with Kuehne+Nagel in other countries reinforced our confidence in choosing them as our partner in Türkiye,” says Cem Öztürk, Sanofi Eurasia MCO Lead.

“We are thrilled to take on the operation of Sanofi’s facility in Tuzla. Our partnership is built on a shared commitment to delivering healthcare products and consumer goods to patients efficiently and with the quality they deserve,” concludes Matthias Blan, Managing Director of Kuehne+Nagel Türkiye.

Kuehne+Nagel supports Sanofi in multiple countries worldwide, including Hungary, the UK, and the UAE, by providing customised fulfilment services.

Kuehne+Nagel UAE inaugurates a custom-designed hub for Rolls-Royce aircraft engines in Dubai to streamline engine deliveries across the Middle East.

Rolls-Royce is a leading global supplier of aircraft engines in the civil aerospace sector. With distribution centres in the Netherlands, the U.S., and the U.K., the expansion of its UAE centre is aimed at preparing for the opening of the new Al Maktoum Airport in Dubai and the anticipated increase in air traffic.

The 3,000 sqm facility, located within Kuehne+Nagel’s existing hub in Dubai South, has undergone extensive refurbishment to optimise fulfilment operations. A specially fitted electric overhead traveling crane with a lifting capacity of 25 tons, along with a parallel 64-metre-long runway and traveling bridge, facilitates the movement of heavy equipment, as well as the loading and unloading of trucks. This automated solution enhances safety and security for both staff and goods while improving overall efficiency.

The centre will house the entire Rolls-Royce Trent high-bypass turbofan family, from smaller engines to Trent XWB, Rolls-Royce’s most powerful engine, with a 3-meter diameter fan and a weight of nearly 17 tons, as well as spare parts, units and nacelles.

During the inauguration ceremony on February 27th, 2025, Adrian Cuthell, Senior Vice President On-Wing Operations and Logistics at Rolls-Royce states: „The strategic location, reliability, and trust in Kuehne+Nagel’s logistics solutions, along with our long-standing global partnership, were key factors in selecting them to operate our hub in Dubai." 

"We are thrilled to see this facility designed and fully re-fitted to Rolls-Royce’s specifications. Our teams have worked diligently to ensure every aspect of the design is carefully tailored to support both the fulfilment and delivery teams operating in the centre, as well as the engines themselves, which, despite their size and weight, require the most delicate handling,” concludes Stephanie Kearney, Head of EMEA and Global Operating Standards Contract Logistics at Kuehne+Nagel.

Kuehne+Nagel supports Rolls-Royce across multiple locations, including the USA, Europe, the Middle East, and Asia, by delivering customised logistics solutions supporting their aerospace logistics needs. 

A few days after Christmas, Decathlon’s Distribution Centres across Europe experienced a surge in demand that surpassed previous forecasts, prompting the Kuehne+Nagel team to dispatch a staggering 38 full truckloads in a single day on December 27.   

“Our team wasn’t at full capacity due to the holidays”, recalls Cindy Cusin, team leader in the Road Logistics hub in Chaponnay which serves as a Control Tower for Decathlon. This is a team that is always available for the customer, coordinating all deliveries, proactively solving issues, and always seeking improvement opportunities. 

Despite the challenging situation, they managed to accommodate Decathlon's request by swiftly engaging with available road carriers and securing trucking capacity on short notice. “This kind of agility is exactly what Decathlon values in its long-standing partnership with Kuehne+Nagel, which has grown stronger year by year”, says Cindy.

A growing partnership 

The Chaponnay team mainly manages road and intermodal freight from Decathlon’s European fulfilment centres to regional distribution hubs across France, Spain, Portugal, Italy, the UK, Germany, the Netherlands, Poland, Hungary, and Romania. To a smaller extent, they also manage shipments from suppliers to warehouses and from warehouses to Decathlon stores. The team even supports Decathlon by reducing their transport emissions through an intermodal solution.  

This is what Decathlon’s Traction Flow Transport Manager had to say about the partnership: "We would like to underline the commitment of Kuehne+Nagel, and particularly the Chaponnay team, which was again by our side throughout 2024. Whether for the management of contractual flows or emergencies, their responsiveness, agility and service quality constitute essential pillars of our partnership. We know that we can count on Kuehne+Nagel during key moments to support us in satisfying our customers.” 

Kuehne+Nagel is looking forward to the next challenges to solve for Decathlon, as we continue to support them in their mission to make sport accessible to all. 

Air up, a pioneer in innovative drinking systems and Kuehne+Nagel BeNeLux broaden their partnership to cover the entire supply chain of scent pods from 2025.

Kuehne+Nagel’s fulfilment centre in Veghel, the Netherlands, has been handling air up´s e-commerce fulfilment activities since 2022 for the Dutch and Belgian markets. Since October 2024, Kuehne+Nagel has also been handling the packing of the scent pods, using paper packaging instead of plastic. Under the new agreement, the distribution services from Veghel will now include all European Union countries, as well as Switzerland and Norway.

As of 2025, the facility will also cover the production of the scent pods. All activities span an area of 7.000 sqm. By regrouping and consolidating the scent pods supply chain in the Netherlands to one location, both partners expect to significantly reduce CO2 emissions in line with their commitment to sustainability.

Lena Jüngst, Co-Inventor & Co-Founder of air up: “At air up, sustainability has been a focus area from the beginning. Partnering with Kuehne+Nagel to streamline our logistics and production aligns perfectly with our mission to drive positive environmental change. Together, we are taking meaningful steps to minimise emissions, reduce plastic waste, and improve overall supply chain efficiency.”

“Developing solutions to reduce CO2 emissions in logistics and minimise environmental impact is at the core of our activities. The consolidated activities for air up in our fulfilment centre in Veghel, enables us to respond more quickly, improve stock availability, and reduce waste by minimising intermediate stocks, comments Jorge Canella, National Contract Logistics Manager at Kuehne+Nagel BeNeLux.

Scent pods flavour drinking water through retro nasal olfaction, enabling users to enjoy flavoured water without sugar or artificial ingredients.

Drawing on its experience of delivering logistics solutions for server and data centre customers, Kuehne+Nagel announces the global launch of a specialised logistics solution for the growing cloud infrastructure industry. The strong growth of this sector has further accelerated with the expansion of artificial intelligence (AI). Gartner forecasts that spending on public cloud services will grow by 20.4% in 2024 and by 22.1% in 2025 due to AI growth.   

"Customers of cloud infrastructure demand reliable, secure, and scalable solutions that cater to the specific needs of their industry and enhance the resilience of their supply chains. The introduction of this dedicated solution underscores our commitment to supporting the global expansion of customers in this rapidly growing sector," states Yngve Ruud, Member of the Management Board of Kuehne+Nagel International AG, responsible for Air Logistics. 

The comprehensive solution addresses the specific needs of an industry that demands reliability, predictability, security, and visibility throughout the entire supply chain. It offers access to Kuehne+Nagel’s extensive global air logistics network with continuous pickup and delivery services, including last-mile white glove road transport solutions. A worldwide network of certified logistics experts is trained to deliver sensitive and oversized servers to data centres with consistent quality and security. 

The solution offers real-time visibility of essential shipment information, enabling customers to make quick and informed decisions. Digital tools reduce risks and identify optimal shipping routes suited to operational needs. GPS capabilities track and monitor shipment movements in real time, offering detailed data reports to verify temperature, light exposure, and chain of custody at all touchpoints.  

Kuehne+Nagel further offers a breadth of sustainable transport solutions to complement the service, which reduces shipment emissions and contributes to reaching environmental targets.  

Kuehne+Nagel acquires a majority stake in IMC Logistics (IMC), a leading marine drayage provider in the United States. As announced by both companies, Kuehne+Nagel will acquire 51% of the privately held company. IMC specializes in comprehensive end-to-end transportation solutions to or from seaports or rail hubs, customer facilities and inland in the United States. With this investment, Kuehne+Nagel enhances its access to one of the most important logistics networks in North America and ensures flexible transportation solutions in times of increasing supply chain disruptions. The IMC brand will be retained.

IMC is headquartered in Collierville, Tennessee and has more than 40 years of experience in providing intermodal solutions for Sea Logistics in the United States. Kuehne+Nagel and IMC are longtime partners. IMC's national network includes 49 locations with a strategic presence at major US seaports and rail transportation hubs. The company handles 2 million TEUs annually in intermodal drayage and rail operations. With around 1,700 employees and an extensive network of independent contractors, IMC generated revenue of around USD 800 million in 2023.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne+Nagel International AG, comments: "The Kuehne+Nagel strategy is based on organic growth supported by targeted bolt-on acquisitions. Asia and North America are the key growth markets for our business, where we have established a leading position which we systematically expand. With IMC in the USA as with the acquisition of Apex in Asia, we do rely on long term partnerships. This reduces the acquisition risk, ensures quick success by deepening an already rewarding cooperation. Acquiring a majority stake in IMC represents another important strategic step. We are further expanding our leading position in North America for the benefit of our customers and closer cooperation with our partners, particularly the carriers."

Stefan Paul, CEO of Kuehne+Nagel International AG says: "International Sea Logistics is a highly complex business with many interfaces and stakeholders, in which US trade flows are of central importance. IMC's range of capabilities significantly expands our service offering and allows us to develop even more attractive solutions for the value chains of our sea freight customers."

Mark H. George, Chairman and Founder of IMC Logistics adds: “We embrace the opportunity to partner with Kuehne+Nagel, one of the world’s leading logistics companies, to elevate our family-founded business to new heights and to grow together. Combining our landside container logistics expertise and offering with Kuehne+Nagel’s global reach will deliver exceptional services for our customers and create new career growth opportunities for our colleagues.”

The transaction is expected to be completed at the beginning of the first quarter of 2025. Both parties have agreed not to disclose further details of the transaction at this time. The deal is subject to approval from regulatory authorities and customary closing conditions.

In 2012, the LEGO Group and Kuehne+Nagel opened an e-commerce platform and warehouse management system, focused on online sales via LEGO.com, in our country. Geel was chosen as the location at the time. To capitalise on long-term growth in Europe, it was time for the next step in the partnership. The distribution centre is the second in the company’s European distribution network, joining an existing centre in Jirny, Czech Republic 

The investment is also part of a broader capacity expansion strategy globally for the LEGO Group. The LEGO Group has also invested more than US $1B in two new state-of-the-art factories in Binh Duong, Vietnam and Virginia, U.S., on track to open in 2025 and 2027 respectively. 

‘In 2023, we started the construction of this brand new distribution centre. It is a great addition to the current location in Geel. We expect to process 32,000 orders a year here for European customers,’ says Dave De Landtsheer, Operations Director Benelux of the LEGO Group. 

‘Today we celebrate the next step in a partnership that has sustained for more than 12 years. Together with the LEGO Group, we carry values such as innovation, infinite possibilities of imagination and creation, constant attention to the customer and the planet we live on. We are especially proud as from today we complete our offer with all our products (sea, air, road, B2C and B2B fulfilment centres) to ensure an exceptional online and in-store experience,’ said Gianfranco Sgro, Executive Vice President of Contract Logistics at Kuehne+Nagel. 

Shorter delivery times & more sustainable transport 

A lot of elements were considered when deciding on the location, including the logistical possibilities. The choice of Tessenderlo allows the LEGO Group to use the European railway network. The LEGO sets will be delivered by train from the LEGO factories in Nyíregyháza, Hungary and Kladno, Czech Republic. A total of 2,000 different types of LEGO sets will be stored at the location in Tessenderlo from where 5,500 trucks depart annually. 

The opening of the distribution centre in Tessenderlo ensures that B2B customers, as well as the company's own LEGO Brand Retail shops, will receive their deliveries faster with a reduction in delivery times by one to two working days. 

The distribution centre supports the sustainability ambitions of the LEGO Group to reduce global CO2 emissions by 37% by 2032. By organising its logistics in this way, the LEGO Group will reduce total annual CO2 emissions by 2,000 tonnes. The building was built according to the environmental standards of BREEAM Excellent, a certification system that measures the sustainability performance of buildings. The wind turbine on the site generates renewable energy and the buildings are heated via geothermal energy. 

Kuehne+Nagel accommodates the MedTech industry by launching new service options for the transportation of medical technology devices as part of its road freight offering in Europe. The MedTech industry continues to grow due to the introduction of innovative technologies that address the needs of aging populations and patients with increasingly prevalent diseases like diabetes, hypertension, asthma and heart failure. 

The extended offering answers a demand for logistics services that do not have to fulfil GxP requirements, but still meet the elevated safety and quality requirements of high-value medical and diagnostics devices. It is available in Germany, France, the UK, the Netherlands, Spain and Italy. 

As part of the service, products are transported with special handling within Kuehne+Nagel’s reliable network. Trained experts in MedTech competence centres provide a centralised customer service and proactively handle unexpected deviations.  Depending on the service option—MedTech or MedTech+—customers can also count on regular consignment inspections, end-to-end visibility, and white glove deliveries including device installation and removal of packing material. 

"What is exceptional is that customers can also choose this service option for groupage shipments, in addition to LTL and FTL. We can guarantee the quality through focused investments in safety procedures, skilled staff and specially equipped cross-docks and stations," said Joerg Woyke, Global Head of Road Logistics Healthcare. "Even when GxP compliancy is not required for medical devices, sensitive handling is highly important." 

Developing new solutions for healthcare customers is in line with Kuehne+Nagel's Roadmap 2026, with Healthcare being a growth area.

The result? A sudden spike in bicycle orders, causing shortages across the market. Yet, Riese & Müller kept the wheels turning during the lockdown, supplying e-bikes to stores across Europe with Kuehne+Nagel as their logistics partner. 

How? Well, according to Tobias Kuhn, Key Account Manager at Kuehne+Nagel, it's all about their approach. "They manufacture their e-bikes similarly to the automotive industry: just in time. And they also configure each bike individually," he explains, beaming with pride about working closely with this prestigious electric bicycle brand. 

Bicycle dealers often have to order their stock of configured two-wheelers a year ahead of time. Unlike most bicycle manufacturers, however, Riese & Müller can deliver in short timelines. The premium e-bike manufacturer configures and assembles the bikes individually at their campus in Mühltal near Darmstadt, Germany, as soon as an order is received.

Founded in 1993 by Markus Riese and Heiko Müller, the owner-managed company now employs almost 900 people at its premises and sells its products worldwide through an exclusive dealer network. The company is synonymous with a sustainable lifestyle, user-focused product development and innovative E-Bike technologies.

With sufficient components in stock, they dodged issues engendered by the pandemic like production stoppages in Asia and shipping container constraints.  

 Tobias describes this success as one of several milestones in the partnerships between the two companies. 

A long-standing partnership 

When Riese & Müller was growing with double digits, the surging need for components and customer deliveries required nimble supply chain planning in sea, air and road freight.  Both companies managed to keep up thanks to close communication. 

In the early 2020s, Kuehne+Nagel joined Riese & Müller in their quest to conquer new markets, orchestrating the inaugural shipments to North America and Australia.  

Europe, however, remains the biggest market.  Each day, the team orchestrates the movement of 6 to 12 full trucks, consolidating cargo destined for every corner of Europe. 

Going electric 

Amidst this bustling activity, the latest partnership milestone shines brightly: the introduction of an electric truck exclusively dedicated to serving Riese & Müller.  

Sustainability has long been a focal point in the ongoing discussions between these two partners, and the introduction of the electric truck marks a significant milestone in their shared commitment. 

The truck is set to cover approximately 300 kilometers daily, shuttling between Riese & Müller's manufacturing hub in Mühltal and Kuehne+Nagel's warehouse in Mainz, where the bicycles are prepared for distribution to stores.  

It's important to acknowledge that this is no small feat. Electric trucks still face numerous challenges, including limited driving range, payload restrictions, and a lack of charging infrastructure. However, Kuehne+Nagel remains dedicated to finding solutions for their customers.

“We are always delighted when customers come to us and ask to put electric trucks on the road together with them. Today it is the most impactful way to reduce transport emissions from road freight,” Tobias Jerschke, Managing Director at Kuehne+Nagel Germany, said.  

“It requires our team to look at those parts of that customer’s operations where it is feasible and efficient, like the leg between Darmstadt and Mainz. Sometimes we need to install additional charging stations like we did recently in Mainz. With this investment, Riese & Müller and Kuehne+Nagel are sending a strong signal: that we take decarbonisation seriously.” 

Sebastian Leschinger, Head of Supply Chain at Riese & Müller, said: “We have a long and trusting partnership with Kuehne+Nagel and are therefore delighted that we are taking the next step towards sustainable logistics together.  

With the new electric truck, which will be used exclusively for all deliveries from our site to the distribution center, we are taking another important step towards becoming the most sustainable company in the e-bike industry.”

Astonishing fact: in 2022, customs professionals across Europe handled around 957 million declarations.* A new record!

Brexit might be the most infamous, modern-day culprit of increasing complexity in customs. Yet, the ‘new’ border is by far not the only contributor as the playbook of global trade comes with more and more rules. In some cases (like with Free Trade Agreements) companies can use those to their advantage, while in other cases they lead to financial and administrative burdens. 

In either case businesses should be vigilant about what’s moving in customs, says Camilla Poulsen, European Business Development Manager Customs at Kuehne+Nagel. She believes that customs will gain even more strategic importance in the future. Gone are the days that customs was a purely operational formality. 

For International Customs Day, we spoke with her to get insights in customs trends that keep customs professionals and businesses on their toes. 

Trend 1: multinationals centralise their customs departments

This trend is another proof point that customs is moving out of the ‘operational’ bucket, straight into the ‘strategic’ one. It mainly pertains to big multinationals and conglomerates. They have many import and export markets and a broad product portfolio, which means they need to consider many different customs and trade regulations.  

Camilla: “Take the example of a retailer exporting from Europe to the UK. Chicken nuggets are products of animal origin which requires a specific health certificate. A bottle of Chianti classifies as alcohol which demands an entirely different customs procedure (with excise duties). This is the reality if you want to fill your supermarket shelves in different countries with a variety of products.” 

If customs operations are fragmented, an already complex challenge becomes even more difficult. “One multinational we helped get Brexit-ready, received different SOPs from each of its 15+ logistics partners. Imagine that: Brexit times fifteen. Something  else we see is businesses overspending on duties or facing supply chain risks because of improper data exchange in a fragmented landscape,” Camilla explains.   

There are many ways to streamline customs procedures, like automating repetitive tasks, using digital tools… but the starting point is centralising the customs governance to ensure an appropriate level of control around the operations. Take ‘preferential origin’ as an example. Companies can really benefit from Free Trade Agreements and enjoy tariff exemptions, and do so consistently. Someone within the company needs to keep an oversight to make sure that such FTAs are taken into account,” says Camilla. 

A centralised approach also makes it easier to capture useful data. That brings us to the second trend. 

Trend 2: Capturing data gains importance as the digital era of customs draws closer 

Have you heard of the EU Customs Reform? This EU proposal from May 17, 2023, is all about digitising customs to cut down on cumbersome customs procedures through electronic data exchange and artificial intelligence. The EU Commission’s website states: “A new EU Customs Authority will oversee an EU Customs Data Hub which will act as the engine of the new system. Over time, the Data Hub will replace the existing customs IT infrastructure in EU Member States, saving them up to €2 billion a year in operating costs.” 

For companies, this means that they need to gear up on their ability to submit customs data electronically. Those with e-commerce shipments can already test the envisioned benefits of the system as of 2028. Other importers would be able to test as of 2032. Still a while from now, you probably think. According to Camilla, though, the time is now to prepare for this digital customs era. 

Camilla: “Many companies still handle their customs quite manually. Today, the majority of our customers send their declaration requests by email. Now is the time for businesses to start building their digital customs management blueprint. Anything business can do right now in this space, will undoubtedly create an advantage for them on the long-term.  

That data capturing is becoming more and more important, is also felt on the sustainability and ESG front. 

Trend 3: ESG-driven customs adds another data layer to supply chains 

A hot topic in 2023 is the Carbon Border Adjustment Mechanism in Europe which will oblige EU-based companies to declare the carbon emissions embedded in the manufacturing of the goods they import. It triggered a lot of questions from our customers, some of which are answered here. In December, the UK followed suit with the announcement that they will also adopt a Carbon Border Adjustment Mechanism, albeit with differing scopes and rules. 

Next to carbon-reducing customs initiatives, there is also a movement to prevent forced labour. This is something that the US already has in place with its Forced Labor Prevention Act. It prohibits goods from being imported into the United States unless the importer can prove that the goods were not produced with forced labour.  The EU Commission has now made a similar proposal.   

Camilla: “While those are positive developments, they put further pressure on companies’ abilities to report on their activities. The requirement to control suppliers means they need to capture yet another layer of data from their supply chains. Companies should continue to monitor developments in this area and build robust processes to ensure that potential human rights (including forced labour) and environmental risks in their supply chains are identified and addressed.” 

In addition to these transformative changes, there are also shorter-term updates to the rulebook of customs and trade that must be followed, as explained in Trend 4.  

Trend 4: Sanctions from geopolitics create a minefield to navigate 

The EU has imposed massive and unprecedented sanctions against Russia in response to the war against Ukraine. In addition, the EU has adopted restrictive measures to curb trade with Iran as part of an integrated policy approach to persuade Iran to comply with its international obligations. Other countries targeted with trade sanctions include Myanmar and Belarus. 

Camilla: “The list of sanctions develops fast. There is a strong emphasis on where goods are sourced, and one must be able to deliver proof of their origins. Traders are no longer ‘allowed’ to trade in the way they were used to – they need to be on top of these developments to ensure compliance.” 

Be strategic about your customs approach 

Every day, Kuehne+Nagel’s customs professionals help businesses, small and large, navigate the ever-evolving customs landscape. Don’t hesitate to reach out via our website.

*Source: https://www.wcoomd.org/-/media/wco/public/global/pdf/about-us/annual-reports/annual-report-2022_2023.pdf

The images used in this article are generated with Artificial Intelligence. 

The new year starts with electrifying news as Kuehne+Nagel announces its Book & Claim insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, which previously was limited to low-emission fuels. Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone. 

Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO—now followed by electric vehicles. The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders.  

Customers who use Kuehne+Nagel's road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges which today still limit the deployment of electric trucks.  

 “We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics.

For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data that is used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners so that it can support them in their fleet electrification journeys too. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi. 

Kuehne+Nagel has opened two dedicated fulfilment centres for Elanco, a leading animal healthcare company, in Chengdu, West China. The new facilities now comprise a 3,000 sqm manufacturing warehouse and a 12,000 sqm distribution centre for finished products, increasing the total space in surface and storage capacity through optimised racking systems.

Both facilities fully comply with the regulatory healthcare requirements and are equipped with state-of-the-art infrastructure to support efficient operations while contributing to reducing carbon emissions through electric warehouse equipment, LED lighting and minimised paper processes. To streamline the process whilst satisfying the most stringent standards on healthcare products administration, a state-of-the-art Warehouse Management System and Computerised Systems Validation have been implemented for this project.

Marcello Ferrari, Vice President Global Head Customer Development Healthcare, Contract Logistics for Kuehne+Nagel said: “Our partnership with Elanco in China builds upon our existing collaborations in India and Mexico and highlights our commitment to the animal healthcare industry globally. As an animal healthcare customer, Elanco relies on the highest quality standards. With our HealthChain label, we ensure that our customers’ products are in the best hands across our entire network. Gaining our customers’ trust is a core element of our strategic Roadmap 2026.”

“China is already the second largest market for Elanco, next to the United States, our home market. Thanks to Kuehne+Nagel, we managed to consolidate our existing facilities and upgrade our supply chain operation to the next level. We are looking forward to seizing the growth opportunities in China’s fast-growing animal healthcare market with Kuehne+Nagel as our indispensable logistics partner,” said Dylan Lu, Vice President of Elanco (Greater China).

This milestone comes on the heels of announcing Kuehne+Nagel and Birmingham Airport Authority are partnering to expand air cargo business in the Southeastern Corridor of the U.S. in February 2023. Starting this week, Kuehne+Nagel will conduct two weekly flights with international cargo coming from Stuttgart, Germany to Birmingham, Alabama.

“As the number-one air freight forwarder worldwide, we are always looking for ways to contribute to the business success of our customers who trust us to manage their logistics,” said Greg Martin, Senior Vice President, Air Logistics at Kuehne+Nagel. “Our vision is to make Birmingham into a long-term gateway to and from the Southeastern Corridor of the U.S. and we’re pleased to be able to provide customers with alternative options that support their supply chain needs.”

Caption: On Sunday, April 2, a Boeing 747-8 Freighter Aircraft landed on the runway of Birmingham-Shuttlesworth International Airport marking the first charter cargo flight from Stuttgart, Germany to the Eastern U.S. The location at Birmingham-Shuttlesworth International Airport brings Kuehne+Nagel closer to customers in the Southeast Corridor, expanding the company’s commitment to serving this important part of North America.

Caption: In addition to being able to carry 16% more cargo than its predecessor, the Boeing 747-8 Freighter Aircraft’s max take-off weight is 950 lbs. greater. This weekly flight will help the automotive, aviation, and pharmaceutical industries, among others who need faster recovery time than at the major hubs that are experiencing congestion due to heavy activity.

Caption: The nose of the plane opens to allow loading and unloading of large cargo. As the cargo was making its way to the warehouse, VIP attendees had the rare opportunity to tour the plane.

Caption: An official ceremony attended by local elected officials along with Birmingham-Shuttlesworth International Airport and Kuehne+Nagel representatives was held on the airport apron to commemorate the inaugural flight.  
Pictured: Juergen Gentzke, U.S. Southeast Regional Vice President at Kuehne+Nagel, addresses the crowd.

Kuehne+Nagel and the Birmingham Airport Authority (U.S.) have announced details of a new partnership that will expand business opportunities for both the company and the region. This is the first time the BAA is partnering with a logistics company and the first time Kuehne+Nagel is establishing a presence at a secondary airport in North America. This partnership allows both organizations to better meet the cargo needs of businesses in the region and helps position Birmingham as an important part of the cargo market in the Southeastern corridor of the U.S. Kuehne+Nagel will begin operating weekly international cargo flights into BHM starting in April 2023. 

This new partnership represents a new era of business development at the airport and positions the Birmingham Airport Authority to build on its role as an important center for business growth in the region and in the state of Alabama. 

“This is a moment that will change the trajectory of this airport,” said Darlene Wilson, Chair of the Birmingham Airport Authority. “The recent enhancements we’ve made to the infrastructure of the airfield, plans for a new Air Cargo facility, combined with this partnership with one of the leading logistics companies is getting us closer to realizing a long-term vision of expanding air cargo business in the region.”

Last year, the Birmingham Airport Authority completed design work on a new $25 million Air Cargo facility. In May, BHM will break ground on the new facility. Initially, Kuehne+Nagel will operate from Kaiser Aircraft Industries’ hangar on the airfield, then move into the new Air Cargo facility at BHM upon completion. Construction is anticipated to take about 10 months.

“Since 1890, Kuehne+Nagel has been shaping the world of logistics with a strong determination to connect people and goods through logistics solutions, and this partnership with Birmingham Airport Authority is helping us continue this tradition in the U.S.,” said Greg Martin, Senior Vice President, Air Logistics at Kuehne+Nagel. “Through this partnership, we will have our first presence in Alabama, bringing us closer to our customers in the Southeastern Corridor. By being the first logistics partner at BHM, we will be able to help our customers get their cargo to its final destination more quickly, affordably and reliably by avoiding the bottlenecks at larger airports.”

This partnership was attractive to Kuehne+Nagel because of the ability to better meet the precise needs of its customers in the automotive, aviation, and pharmaceutical industries through features such as additional cargo capacity, temperature-controlled cargo space, and more. Kuehne+Nagel will subcontract warehouse management to AGI, Alliance Ground International, which is a ground handling company that currently operates at more than a dozen airports in the nation. 

Kuehne+Nagel will begin operations at BHM on April 2, with an inaugural flight that will arrive from Stuttgart, Germany, marking the first cargo flight from Stuttgart, Germany to the eastern U.S. 

Kuehne+Nagel Ireland will open a temperature-controlled facility to meet the growing demands of the country’s thriving healthcare industry. The site, scheduled to open in late July 2022, is strategically located near the Dublin airport and Dublin port. Along with three existing healthcare warehouses, it expands Kuehne+Nagel’s healthcare footprint in Ireland to  40,000 sqm. 

Ireland is one of the largest exporters of healthcare products globally, with over 50 FDA-approved manufacturing plants. Kuehne+Nagel’s commitment as market leader in healthcare logistics in the country continues with the investment in this new facility. It supports long-term collaborative partnerships with major players in the industry, enabling them to focus on core production and R&D activities. 

The new HPRA-approved facility has been optimised for all storage, distribution, and quality activities. The facility uses energy-efficient equipment to maintain the warehouse at a controlled temperature between 15-25 degrees Celsius, and will house 34,000 Euro-pallet positions with segregated loading and unloading gates. 

Commenting on the expansion, Pamela Quinn, Managing Director of Kuehne+Nagel Ireland, says: “Pharma & Healthcare companies in Ireland are at the forefront of the research and development of advanced treatments and therapies. This new facility enables Kuehne+Nagel to support the incredible progress and we are proud to be the partners for some of the largest multinationals and companies within this industry”. 

Kuehne+Nagel Ireland today employs over 450 people. In addition to Contract Logistics, the company has a strong presence in Road Logistics, Sea Logistics and Air Logistics (with offices in Cork, Shannon and Dublin) as well as an Integrated Logistics team managing regional and global contracts for 4PL customers with a primary focus on healthcare, high-tech and consumer goods. 
 

This release is available in German language only.

Automated translation by DeepL 

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Als Key Partner für das Olympia Team Deutschland und Team Deutschland Paralympics hat Kühne+Nagel in den vergangenen Wochen 100 Tonnen Fracht von Deutschland nach China transportiert – darunter sämtliche Sportgeräte und die komplette Ausrüstung der 400-köpfigen Team Deutschland Delegation, beispielsweise:

• 14 Bobs
• 16 Rennrodelschlitten
• 12 Skeleton-Schlitten
• 400 Taschen Bekleidung
• Medizinische Geräte

Während der 16-tägigen Laufzeit der Olympischen Spiele stellt Kühne+Nagel sicher, dass die Ausrüstung jeweils zur richtigen Zeit am richtigen Ort zur Verfügung steht, sodass sich die Athletinnen und Athleten auf ihre sportlichen Leistungen konzentrieren können. Ebenfalls stellt Kühne+Nagel die logistische Infrastruktur des Team Deutschland im Mountain Cluster vor den Toren Beijings sicher.

Weil die Sportgeräte noch bis kurz vor den Spielen von den Athletinnen und Athleten im Einsatz sind, werden sie per Luftfracht nach Beijing und im Anschluss an die Spiele wieder zurück befördert. Auf den durch Lufthansa Cargo durchgeführten Flügen setzt Kühne+Nagel Sustainable Aviation Fuel (SAF) ein und minimiert damit die CO2-Emissionen der Transporte.

Das federführende Expo- und Eventteam von Kühne+Nagel hat sich in den vergangenen Monaten intensiv auf den Einsatz in Beijing vorbereitet. Pandemiebedingt konnten viele Planungsaspekte nur äusserst kurzfristig festgelegt werden. Ebenfalls ist Kühne+Nagel mit einem deutlich reduzierten Team vor Ort im Einsatz. Nach den Olympischen Winterspielen wird das Team die reibungslosen Logistik-Abläufe rund um das Team Deutschland Paralympics bei den Paralympischen Spiele sicherstellen.

The Board of Directors of Kuehne + Nagel International AG today initiated top management changes. Effective August 1, 2022, Stefan Paul will assume the position of CEO of Kuehne + Nagel International AG. At the same time, the current CEO, Dr. Detlef Trefzger, will step down for private reasons. It is planned to appoint Dr. Trefzger to the Board of Directors of Kuehne + Nagel International AG, with the term following completion of his successful nine-year leadership.

Stefan Paul (born 1969) is a German citizen and has been a member of the Kuehne + Nagel Management Board since 2013, currently responsible for Road Logistics and Sales. He started his career at Kuehne + Nagel in 1990. Between 1997 and 2013, he held management positions at various logistics companies in Germany and the UK, among others. In 2013, Stefan Paul returned to Kuehne + Nagel, where he assumed responsibility for all Road Logistics activities and was able to expand and globalise the business while increasing profitability. Later, he also took over the responsibilities for global sales in the management team.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG:

"One of Kuehne + Nagel's principles is long-term company development, which includes, above all, succession planning for management positions. In view of the company’s very successful performance, the focus thereby lies on ensuring continuity. With the appointment of Stefan Paul as CEO, the global strategy and corporate culture will be sustained.

The Board of Directors has held Stefan Paul in high esteem for many years and considers him to be an outstanding leader for the company’s future. Hence, we are pleased having been able to appoint this crucial position from inside of our top management.

We would like to take the opportunity now already to thank Dr. Trefzger for his leadership over the past years. Together with his management team, he has succeeded in developing Kuehne + Nagel achieving excellent results. This deserves the special recognition of the Board of Directors of Kuehne + Nagel International AG."

Sustainability Report 2020

SailGP today announced Kuehne+Nagel as its official logistics partner for the next three seasons, through 2024. Both partners aim to set a new standard for major event logistics, minimising the carbon footprint of the sail racing league's transport within their climate positive strategy. As part of its Net Zero Carbon programme, Kuehne+Nagel is also pursuing its own goal of being completely CO2 neutral by 2030, including transport emissions from its suppliers (Scope 3 of the Greenhouse Gas Protocol).

Kuehne+Nagel will work with SailGP to support the global logistics of its multi-continent race calendar with industry-leading sustainable shipping methods including alternative fuels. In addition, Kuehne+Nagel gives the league full visibility on all shipping-related emissions through its Seaexplorer platform. The tool will enable SailGP to select more efficient transport routes for future seasons that emit substantially less carbon. For the shipping emissions that can’t be removed or reduced, Kuehne+Nagel will offset the remaining carbon footprint via verified gold standard offsets. Combined, the measures will ensure a 100 per cent CO2 neutral supply chain.

Otto Schacht, Member of the Management Board of Kuehne+Nagel International AG, responsible for Sea Logistics, said: "The Kuehne+Nagel teams in the SailGP event locations are more than delighted to provide logistical support to SailGP at every regatta around the globe. Our partnership is based on the same mindset of caring for the future of our planet. We at Kuehne+Nagel are committed to providing environmentally friendly and sustainable supply chain solutions – also in the events logistics industry."

SailGP CEO Sir Russell Coutts said: “Our approach to partnerships starts with wanting to work with like-minded organisations that share our vision and align with our values and goals. Kuehne+Nagel is the perfect example of this; they are innovators and leaders in their industry. Our global platform enables us to work together to identify and test innovations that could inspire new sustainability standards for logistics in the events industry and showcase how suppliers can take responsibility for the carbon footprint of their services – as well as help us to come closer to our own goal of being fully powered by nature by 2025.”

Find out more about SailGP’s Race for the Future here.

• Publisher of greeting cards becomes the first company in the UK to sign up to Kuehne+Nagel’s industry-leading Net Zero Carbon programme
• UK consumers concerned more than ever about environmental impact of their purchases

Kuehne+Nagel has set out ambitious goals to neutralise the climate impacts of supply chains, and is pleased to announce that UK Greetings has become the first company in the UK to address its CO2 emissions through the Net Zero Carbon programme. UK Greetings are market-leading publishers of greeting cards and gift dressings.

As part of its Net Zero Carbon programme, Kuehne+Nagel offers UK Greetings a complete solution for CO2 neutralisation. By choosing particularly climate-friendly transport solutions and offsetting the remaining emissions with CO2 certificates, UK Greetings’ logistics become climate-neutral. Kuehne+Nagel takes care of the entire process and ensures smooth coordination with the rest of the supply chain.

Ethical consumer spending has hit record levels in the UK, with 43% of UK consumers already actively choosing brands due to their environmental values (Deloitte UK, 2020). It’s clear that consumers are more concerned than ever about the environmental impact of their purchases, and for companies looking to prove their green credentials, a climate-neutral supply chain can be a key differentiator in the UK market. The Net Zero Carbon programme means that both Kuehne+Nagel and its customers are able to fulfil those expectations.

With Net Zero Carbon, Kuehne+Nagel has also set ambitious climate targets for itself. By the end of 2020, the company's own CO2 emissions (Scopes 1 and 2 of the greenhouse gas protocol) will be neutral; by 2030, this will be extended to all transport by suppliers such as airlines, shipping lines and haulage companies (Scope 3).

Richard Wilkinson, Operations Director, UK Greetings Ltd, said: “Businesses have a hugely important role to help build a more sustainable future. UK Greetings actively supports the United Nations’ Sustainable Development Goals (SDGs), which aim to transform our world by ending poverty and inequality, protecting the planet, and ensuring that all people enjoy health, justice and prosperity. Targeting the climate crisis, UK Greetings are making every effort to reduce carbon emissions from overseas shipping, as we strive to increase manufacturing in the UK. We are excited to join the Net Zero Carbon Programme, which will offset our remaining carbon emissions associated with the importation of our products.”

Kuehne+Nagel UK’s Seafreight Director, Matt Laflin, said: “Almost a year since the introduction of Net Zero Carbon, the programme is becoming increasingly popular with our international customers. We are pleased to support UK Greetings in offering British consumers climate-neutral solutions and making a considerable contribution to the Sustainable Development Goals by opting for a CO2 neutral supply chain.”

For more information on the Net Zero Carbon programme, click here.

• German toy manufacturer Schleich now handles its sea freight on a CO2 neutral basis with Kuehne+Nagel
• Current market environment does not prevent customers from addressing the CO2 emissions of their supply chains
• With Net Zero Carbon, Kuehne+Nagel offers a complete solution for CO2 neutralisation

Even in the currently volatile market environment, solutions for climate-neutral supply chains remain highly popular. Schleich GmbH, one of the largest toy manufacturers in Germany and the leading international provider of realistic animal figures, has decided to neutralise its entire sea freight CO2 footprint with the help of Kuehne+Nagel.

"The decisive factor was Kuehne+Nagel's Net Zero Carbon programme, which sets new standards with CO2 neutral logistics. We are pleased about this cooperation set on common values for the environment and people," says Dirk Engehausen, Chief Executive Officer of Schleich GmbH.

As part of its Net Zero Carbon programme, Kuehne+Nagel offers Schleich a complete solution for CO2 neutralisation. By choosing particularly climate-friendly sea freight connections and compensating the remaining emissions with CO2 certificates, the sea freight of the German toy manufacturer is shipped in a climate-neutral way. Kuehne+Nagel takes care of the entire process and ensures smooth coordination with the rest of the supply chain.

With Net Zero Carbon, Kuehne+Nagel not only supports customers on their way to climate neutrality; the company has also set ambitious climate targets for itself. By the end of 2020, the company's own CO2 emissions (Scopes 1 and 2 of the greenhouse gas protocol) will be neutral; by 2030, this will be extended to all transport by suppliers such as airlines, shipping lines and haulage companies (Scope 3).

Otto Schacht, Member of the Management Board of Kuehne+Nagel International AG, responsible for Sea Logistics, comments: "Our new partnership with Schleich shows that Kuehne+Nagel has its finger on the pulse with its Net Zero Carbon programme. Our ability to offer Schleich a coordinated package for the CO2 neutral handling of sea freight was decisive. We are pleased to actively support Schleich in their ambitious climate goals."