Kuehne + Nagel Explained

Kuehne + Nagel International AG und Co.
Type:Holding company
(Public)
Industry:Transport
Logistics
Foundation:Bremen, Germany
Location:Schindellegi (canton of Schwyz), Switzerland
Num Locations:1,300 (2023)
Area Served:Worldwide
Key People:Klaus-Michael Kühne
(Honorary Chairman)
Jörg Wolle
(Chairman)
Stefan Paul
(CEO)
Markus Blanka-Graff
(CFO)
Sarah Kreienbühl
(CHRO)
Marc Pfeffer
(CLO)
Martin Kolbe
(CIO)
Yngve Ruud
(EVP Air Logistics)
Michael Aldwell
(EVP Sea Logistics)
Hansjörg Rodi
(EVP Road Logistics)
Gianfranco Sgro
(EVP Contract Logistics)
Products:Sea Logistics
Air Logistics
Road Logistics
Contract Logistics
Services:Transportation and Fulfillment
Warehousing and Distribution
Project Logistics
Customs Clearance
Insurance
E-commerce
Supply Chain Management 4PL
Supply Chain Consulting
Revenue:CHF 18.59 billion (2017)
Net Income:CHF 740 million (2017)
Num Employees:79,000 (2023)
Website:kuehne-nagel.com

Kuehne + Nagel International AG (or Kühne + Nagel) is a global transport and logistics company based in Schindellegi, Switzerland. Its main owner and operator is Klaus-Michael Kühne via his Kühne Holding and Kühne Foundation.

The company was founded in 1890 in Bremen, Germany. It provides sea freight and airfreight forwarding, contract logistics, and overland businesses. As of 2023, it has nearly 1,300 offices in over 100 countries and nearly 79,000 employees.[1]

History

Early years and evolution: 1890–1933

The origins of Kuehne + Nagel was in 1890, when August Kühne and Friedrich Nagel founded a forwarding commission agency in Bremen, Germany. It was initially used to concentrate on cotton and consolidated freight. Later in 1902, it expanded its operations to Hamburg.

In 1907, the co-founder Friedrich Nagel died, and August Kühne took over his shares in the company. The legacy of Nagel still lives on, in the company's name – Kuehne + Nagel (KN). World War I greatly affected its businesses.

Upon Kühne's death in 1932, his sons – Alfred and Werner – became partners in the firm. Adolf Maass (1875 – probably early in 1945 in Auschwitz concentration camp), who was Jewish, a partner, and one of the firm's shareholder with a 45% stake, was forced out in April 1933. On the 1st of May 1933 Alfred and Werner Kühne joined the Nazi Party,[2] and under the brothers' management the firm played a prominent role in the transport of property seized from Jews in occupied territories.[3] [4]

Involvement in Nazi theft of Jewish property

Kuehne + Nagel played a key role in the Nazi regime's “M-Aktion”. In total, by August 1944, the responsible Nazi agency had had the furnishings of around 65,000 apartments in the Netherlands, Belgium, France and Luxembourg removed. This required 500 barges and 674 trains. Kuehne + Nagel played a key role in the implementation of the transport logistics. The company was active directly and with the help of subcontractors in all occupied Western countries.[5]

The transports from the Netherlands are the most extensively researched. For example, K + N chartered its own steamer to transport looted Jewish property to the German Reich. The first cargo ship from Amsterdam arrived Bremen in December 1942. The parts list shows 220 armchairs, 105 beds, 363 tables, 598 chairs, 126 cupboards, 35 sofas, 307 boxes of glassware, 110 mirrors, 158 lamps, 32 clocks, a gramophone and two strollers. These were the property of Dutch Jews who had been deported to concentration camps in the summer of 1941.[6] [7]

Transition to a Swiss holding co., and expansion: 1950s – 1990s

In the early 1950s, Alfred Kühne initiated the company's international expansion; and KN expanded its operations into Canada, with the opening of branch offices in Toronto, Ontario and Montreal, Quebec. In 1963, KN took a controlling stake in Athens based Proodos S.A, and also expanded into Italy. In 1975, the company adopted a holding company structure, with the formation of Kuehne + Nagel International AG based in Schindellegi, Switzerland, as the ultimate holding company.

In the mid-1960s, a third-generation member of the Kühne family, Klaus-Michael Kühne joined his father Alfred Kühne as a junior partner, having completed an apprenticeship in banking. In 1966, at the age of 30, he joined the management team as executive chairman; and spearheaded KN's future expansion, particularly its European and the Far Eastern operations.

In 1981, Alfred Kühne died; and in July the same year, due to the losses sustained by the Kühne family in attempting to expand its shipping fleet, a 50% stake in KN was sold to the British conglomerate Lonrho Plc for 90 million DM. Following the purchase, Klaus-Michael Kühne and Lonrho's head, Roland "Tiny" Rowland acted as joint chief executives of the combined organisation. KN further expanded with its acquisition of freight companies: Domenichelli SpA (Italy), Van Vliet BV (Netherlands), Hollis Transport Group Ltd. (UK), Transportes Tres (Spain), and other acquisitions in Denmark, Norway, and Sweden.

Further expansion: 1990s – 2000

The 1990 German reunification was an important event for many German companies, including KN; and provided them the necessary impetus to expand further. After the reunification, KN integrated its network in the former German Democratic Republic, and consolidated its operations. In 1992, it bought back Lonrho plc's 50% stake in the company; and went public in May 1994. It was listed on the Zurich and Frankfurt exchanges, which provided a platform for further exchange-based acquisitions. The same year, KN established a Russian subsidiary; and pushed ahead into Norway, Sweden, and Denmark.

In the mid 1990s, strategic focus given to expand the lucrative logistics-related contracts / operations paid off – one being with DuPont in which KN would operate the chemical giant's leveraged distribution activities in Europe, the Middle East, and Africa. In July 1999, Kühne handed over the post of CEO to Klaus Herms, and continued as the executive chairman and president of the board.

2000 to present

In the early 2000s, KN got a foothold in the Asia Pacific contract logistics market, when it forged a strategic alliance with Singapore-based SembCorp Logistics. In 2001, it acquired USCO Logistics Inc. – a warehouse-based logistics service provider based in Hamden, Connecticut, for US$300 million. KN and SembCorp chose to follow different strategic paths in 2004, and ended their strategic partnership.

In October 2007, the board of KN appointed Reinhard Lange as the successor to CEO Klaus Herms, effective June 2009 to ensure a smooth handover. The succession plan was similar to the SAP's 2007 CEO transition plan from Henning Kagermann to Léo Apotheker, which received praise in the media.[8]

In 2012, Kuehne + Nagel acquired the business contracts of Canada's Perishables International Transportation (PIT) to expand into global fresh and frozen foods network.

In September 2013, Kuehne + Nagel agreed to merge its railfreight business with VTG to form VTG Rail Logistics, which would be Europe's largest private railfreight business when it starts operations in 2014.[9]

In April 2014, Kuehne + Nagel International was fined $3.1 million for its part in a freight forwarding cartel case brought by the Commerce Commission. Kuehne + Nagel was the last defendant in the seven-year investigation involving six firms, who referred to themselves as the "Gardening Club" and used horticultural code to discuss anti-competitive practices among them.[10] [11] [12]

In June 2020 the 2021 Rugby League World Cup announced that Kuehne + Nagel would become the official Logistics Partner of the tournament.[13]

In November 2023 Kuehne + Nagel acquired Farrow, a customs broker out of Ontario, Canada. Farrow will be fully owned by Kuehne + Nagel in early 2024. [14]

Public processing of the company's history and commemoration

Since Klaus Michael Kühne and the company Kuehne + Nagel refused to remember the Jews his company robbed during the Holocaust, a citizens' initiative was founded at the German company headquarters in Bremen.[15] The Bremen editorial team of Die Tagezeitung launched the “4 Sqm Truth” initiative in 2015 in close coordination with the Jewish community of Bremen and against strong resistance of political officials. The initiative wanted the company to commemorate its own crimes between 1933 and 1945 with a memorial in front of its newly built headquarters.[16]

The core of the conflict was how close the memorial could be to the headquarters of the global logistics company Kuehne + Nagel, which profited on a large scale from the plundering of European Jews and owed it decisive growth impulses. Finally in 2022 a memorial on public ground, 150m from Kuehne + Nagel was inaugurated on the shore of the Weser River. The granddaughter of the former Jewish K+N partner Adolf Maass, who was forced out of the company in 1933 and was later murdered in the Auschwitz concentration camp, travelled from Canada to the inauguration of the memorial.[17] There was no representative of the Kuehne + Nagel company at the inauguration.[18]

Organization

The group employs more than 78,000 people in 1000 locations in more than 100 countries and has approximately 12 million sqm of warehouse space under management. It is organised in the following five geographical divisions:

Operations

Kuehne + Nagel is divided into the following operating segments:

Services

Kuehne + Nagel provides sea freight and airfreight forwarding, contract logistics and overland businesses; with a focus on providing IT-based logistics.

Its freight forwarding (sea / air) services, include the necessary arrangement for the transport of goods by road and rail. Its contract logistics unit offers warehousing and distribution services.

KN Integrated Logistics includes 4PL Management, Supplier & Inventory Management, Aftermarket Management and Supply Chain Technology. KN Integrated Logistics acts as the single point of contact with full operational responsibility with focus on supply-chain integration.

Kuehne + Nagel's solutions extend to the world's largest industries including: aerospace, automotive, fast-moving consumer goods, high-tech & consumer electronics, industrial goods, oil & gas, retail, pharma & healthcare.

Leadership

Board of Directors[19]

Current Management Board:

Previous Chief Executive Officers

See also

Notes and References

  1. Web site: About Kuehne + Nagel . 2022-06-01 . Kuehne + Nagel . en-US.
  2. Hamburg State Archives Signatur 371-8 II_SXXI A15 a 133
  3. Web site: Kühne + Nagel: Jubiläum mit dunklen Flecken | NDR.de - Kultur - Geschichte - Chronologie . NDR.de . 2015-06-30 . 2016-07-20.
  4. News: Kühne + Nagels Rolle bei der Ausplünderung der Juden - DIE WELT . Die Welt . 1970-01-01 . 2016-07-20. Müller . Leo .
  5. Web site: deutschlandfunk.de . NS-Geschichte von Kühne + Nagel - Unaufgearbeitete Vergangenheit . 2024-02-16 . Deutschlandfunk . de.
  6. Web site: 2017-08-25 . Kühne + Nagels Rolle bei der Ausplünderung der Juden - WELT . 2024-02-16 . DIE WELT . de.
  7. News: Kahlcke . Jan . 2023-09-10 . "Arisierungs"-Profiteur Kühne + Nagel: Gedenken unterm Firmensitz . 2024-02-16 . Die Tageszeitung: taz . de . 0931-9085.
  8. News: The Other Transition . The Economist . 2010-09-30 . 2009-01-03 . 390 . 8612 . 49.
  9. News: Kuehne + Nagel and VTG agree rail logistics merger. 4 October 2013. Railway Gazette International.
  10. Web site: Swiss firm fined 31 million over cartel | Business | Newshub . 3news.co.nz . 2014-04-08 . 2016-07-20.
  11. Web site: 'Gardening Club' freight cartel participant fined $3.1mln | Scoop News . Scoop.co.nz . 2014-04-08 . 2016-07-20.
  12. Web site: 'Gardening Club' freight cartel participant, Kuehne + Nagel, fined $3.1m | The National Business Review . Nbr.co.nz . 2014-04-08 . 2016-07-20 . 2016-08-19 . https://web.archive.org/web/20160819142310/http://www.nbr.co.nz/article/gardening-club-freight-cartel-participant-kuehne-nagel-fined-31-mln-bd-154458 . dead .
  13. Web site: Kuehne + Nagel to deliver RLWC2021 as Official Partner.
  14. Web site: Mahoney . Noi . 2023-11-29 . Canadian freight forwarder Farrow acquired by Kuehne + Nagel . 2023-11-30 . FreightWaves . en-US.
  15. Web site: Alt, reich, uneinsichtig – Der Fall Kühne + Nagel und der Nationalsozialismus Förderkreis Nordtribüne e.V. . 2024-02-16 . nordtribuene-hamburg.de.
  16. News: Kleinschmidt . Christian . Leggewie . Claus . 2016-07-14 . Kühne + Nagel: Die Abräumer . 2024-02-16 . Die Zeit . de-DE . 0044-2070.
  17. News: Kahlcke . Jan . 2023-09-10 . "Arisierungs"-Profiteur Kühne + Nagel: Gedenken unterm Firmensitz . 2024-02-16 . Die Tageszeitung: taz . de . 0931-9085.
  18. Web site: deutschlandfunkkultur.de . Bremer "Arisierungs"-Mahnmal eingeweiht . 2024-02-16 . Deutschlandfunk Kultur . de.
  19. Web site: Corporate Governance . 2022-06-01 . Kuehne + Nagel . en-US.
  20. News: Reinhard Lange to succeed Klaus Herms as Kuehne + Nagel CEO. biz.yahoo.com. October 2007. 24 July 2012.