Handling of Air Freight via Germany Becoming Increasingly Expensive

Germany is increasingly losing air freight to international hubs, both within and outside the EU. “The state location costs are far too high. It is becoming increasingly expensive to handle air freight via Germany,” sent Dr. Joachim Lang, Managing Director of the Federal Association of the German Aviation Industry (BDL), a warning signal at the recent meeting of the aircargo club deutschland (acd) in Frankfurt.

(Frankfurt) This development is particularly serious because air freight is of paramount importance to the German economy. No other mode of transport moves such high-value goods: The average value of goods transported by air is 152,807 euros per ton. In comparison, the value on the road is 6,525 euros, on the ship it is 2,493 euros, and on the rail it is 2,090 euros. Thus, the airplane is the central means of transport for value-added intensive goods for the export nation Germany.

More and more shipments for Germany are being handled through hubs in neighboring countries. Additionally, hubs in Doha, Dubai, or Baku are significantly redirecting global goods flows to themselves. Many of these locations receive targeted state subsidies, leading to competitive advantages and putting the German industry in an unintentional predicament.

German freight forwarders are also increasingly shifting to foreign locations. One-third of them hardly use local airports for air freight shipments to and from Germany anymore. The reasons for this are primarily high location costs, over-fulfillment of EU law, unnecessary bureaucracy, and problems with customs clearance. While a long-haul freight flight in Frankfurt, for example, incurs around 1,500 euros in air traffic control fees, the costs in Istanbul are only 72 euros, and in Liège, even 0 euros. The consequence: Germany lost about 62,000 tons of air freight to foreign countries in 2023. Before 2019, the balance was still positive, as Germany was able to gain 206,000 tons from abroad.

Dr. Lang made it clear that without relief for the industry, the exodus will continue. The BDL therefore demands, among other things, a reduction in the air traffic tax, a partial assumption of the fixed costs of air traffic control by the federal government, the reversal of recent fee increases, as well as the reduction of various bureaucratic hurdles specifically for the air freight sector and accelerated digitization of processes. To this end, the association has presented a detailed five-point program this year and has initiated initial discussions with the responsible authorities and ministries.

Need for Relief

acd President Prof. Dr. Christopher W. Stoller emphasized the need for relief for economic development: “Air freight is indispensable for the export nation Germany and its industrial strength. It is all the more important that we clearly articulate the interests of the industry and advocate them vigorously to politics.”

Photo: © Aircargo Club Deutschland