Hyundai Glovis Expands Global 'Air Logistics' Business... Establishes Hub at German Airport

[Asia Economy Reporter Dongwoo Lee] Hyundai Glovis is establishing a strategic base in Europe to expand its global air logistics business. The company plans to extend its air business to the Americas and the Asia-Pacific region within the year, providing comprehensive solutions across all sectors of the global logistics market, including land, sea, and air transportation.

On the 27th, Hyundai Glovis announced that it will establish and operate a directly managed office at Frankfurt Airport in Germany to carry out air forwarding (freight forwarding) operations. Leveraging its strengths in land and sea transportation, the company aims to diversify its business portfolio by expanding into air logistics.

Forwarding refers to the process where a specialized company entrusted with freight transportation manages the entire transport process of a customer's cargo from departure to arrival. Export and import companies can receive stable freight transportation services by entrusting forwarding tasks to professional firms.

Multi-product Transport Including Auto Parts, Electronics, and Medical Devices

Hyundai Glovis selected Frankfurt Airport in Germany to expand its air logistics business because it is the largest air cargo hub in Europe. Frankfurt Airport handles approximately 2 million tons of cargo annually and is considered a strategic key point for expanding logistics operations.

The company plans to target Europe, where many global companies are concentrated, using Frankfurt Airport as its base. The total Gross Domestic Product (GDP) of countries belonging to the European Union (EU), a major economic bloc, amounts to about 20 trillion dollars.

Hyundai Glovis stated, “As an important airport that controls the entire cargo volume in Europe, securing a base locally is crucial for smooth logistics operations.”

Initially, Hyundai Glovis will showcase its sales capabilities targeting global companies aiming to increase market dominance in East Asia, including Korea. It will target multinational corporations across all sectors, including high-value cargo such as automotive parts, high-tech components, and medical devices, as well as consumer goods, cold chain (refrigerated and frozen logistics), and global e-commerce.

Hyundai Glovis plans to arrange air transportation for cargo from Europe to Korea six times a week. It will flexibly adjust transportation schedules according to volume in the future to provide faster and more accurate logistics services to shippers.

Expanding Air Cargo Routes to the Americas and Asia-Pacific Regions

Hyundai Glovis’s expansion of its air logistics business this year is interpreted as a proactive response to the post-COVID-19 era.

With the commercialization of COVID-19 vaccines, the global economy is expected to recover rapidly, creating a need to expand business for securing profitability.

The company plans to officially launch its air logistics business in the Americas in the first half of this year, starting with Europe. It will focus on Atlanta Airport in Georgia, USA, as a key base and concretize business with global companies established locally.

In the second half of the year, Hyundai Glovis plans to expand air cargo routes to Southeast Asia, establishing an air logistics system that covers the three core global economic zones: Europe, the Americas, and the Asia-Pacific region. To meet the demand in rapidly growing sectors such as pharmaceuticals, medical devices, and the cold chain industry, the company also plans to strengthen its capabilities in acquiring related certifications.

Hyundai Glovis intends to perform globally standardized air export and import operations through its logistics operation platform under development. It plans to enhance customer satisfaction by providing shippers with real-time cargo location tracking and estimated transportation schedules.

A Hyundai Glovis official said, “Recently, the industrial environment has become complex and rapidly changing, and the share of air logistics in the overall logistics market is gradually increasing. Based on our strengths in land and sea transportation, we will rapidly develop our air logistics capabilities to provide comprehensive logistics solutions that enhance customer satisfaction.”