A new Teutonic order: how reimagination guides German innovations in air cargo

Sniffing out innovation and niche space

Like Teutonic horses, beyond new digital applications emerging in air cargo, we see the reimagined use and application of existing operational processes, which makes these practices innovative.

While increasing security measures are making canines a common sight for passengers walking through airport terminals, and dogs are likewise increasingly being used to screen cargo, Fraport, the German transportation company operating Frankfurt Airport, is taking the practice to new levels.

At FRA, Fraport subsidiary FraSec TEDD GmbH has implemented a program called RESTCargo. The program, which stands for “Remote Explosive Scent Tracking,” uses sniffer dogs to test air samples from entire truckloads rather than requiring cargo handlers to test individual pieces of cargo.

Specially trained explosive detection dogs sniff air samples that are suctioned out of an enclosed space such as a cargo container or truck to identify molecules of explosives. A negative finding allows quick security clearing of cargo that can then continue on its way with only a minimal delay. Fraport said the program is currently undergoing the approval procedure for the program with its relevant German regulation authorities.

“[RESTCargo] saves time, and in effect money, because the entire truckload of pallets does not have to be unloaded, dismantled and individually checked,” said Fraport VP of cargo sales Roland Weil. “It eases and speeds up the flow of operations, while ensuring a high standard of safety and security.”

In a similar fashion, Hermes Group, headquartered in Hamburg, has found a niche market for the reapplication of existing programs in innovative ways.

While postal services offer lower prices than those of major integrators for express shipments, postal service channels do not offer the end-to-end scanning of shipments provided by integrators. Given the price difference many customers choose to send their packages, largely e-commerce, through postal channels. However, because the value of some of these goods is higher than in the pass, like for electronics and special equipment, there is increasing demand for end-to-end shipment tracking, which postal operators simply do not provide.

To meet this growing demand, Hermes Group offers end-to-end shipping services at a price point between postal and those of major integrators across all transport modes for customers in Europe and is in the process of expanding its network to the U.S., China and Australia. The company offers scans of the parcels and goods it ships across the whole supply chain.

“This may not sound too technologically innovative, but it is something that big postal operators have problems doing. And the major integrators are on the express side of business,” said Hermes International CEO Stephan Schiller.

He continued, “That’s basically where we’ve tried to make a difference – we’re offering a product which is in between postal and express. And that pricing alternative differentiates us in the market against our competitors.”

The strategy is clearly working as Hermes has been extremely successful in the German market, putting pressure on long-time local delivery giants like Deutsche Post-DHL. According to the company, it is also gaining traction on trade lanes between China and Europe.

Beyond its plans to continue expanding its global network for its freight operations, Hermes Group said for the rest of 2019 it will continue working to merge its e-commerce parcel and freight operations.

“We are really focused on developing our parcel shipment volumes for all our networks in Europe, especially those coming from the U.S. and China,” Schiller said.

Ultimately, the broader adoption of these new technologies and processes across the global air cargo industry will likely take time. Even so, though, the emergence of these innovations holds promise for air cargo in a world where shifting economic and political climates demand stakeholders in air cargo implement more efficient and secure processes moving forward.