Multi-HUB-transports of the CTL AG
Founded in 1993 as Cargo Trans Logistik Speditionsgesellschaft mbH, CTL was dedicated to the coordination of direct transports in the general cargo and part-load sectors. In the following years, the classic HUB system, which is still in use today, developed from the idea of dividing up areas in Germany between cooperating forwarders, handling consignments at a terminal and serving the assigned area with the partner’s consignments.
The so-called Hub & Spoke system connects all connected network partners with several hubs, which guarantees the connection between all points in Germany. The primary goal of the system is to be able to feed a general cargo consignment into the network at any location and reach any consignee located in Germany and parts of Europe.
Analysis of the network
CTL takes over 7,000 packages daily at the central HUB in Homberg and redistributes them to one of the more than 200 trucks for their destination. The consolidation and redistribution are intended to utilise truck capacities economically, save unnecessary routes and prevent high costs. The regional locations complement the function of the central HUB and produce consignments whose consignors and consignees are located within the area of the respective regional HUB via this regional HUB. An analysis of consignment flows showed that most of Germany is connected via the regional transhipment facilities even without the central HUB.
Additional production possibilities in the CTL network
The volume development of the last 1.5 years as well as the impact of the Corona pandemic on volume volatility in the logistics industry clearly show that high flexibility in production will be a very important tool for freight forwarders to serve their own customers in the future. This is how the idea for the introduction of multi-hub transports in the CTL network was born, which should achieve these concrete results for the partners:
- More production possibilities for scheduling
- increase of own capacity utilisation instead of purchasing a surplus
- Rup traffic (double tours) instead of HUB – surplus
- Production possibilities for “slow movers”
- Customer promotions with lead times can be handled more intelligently
- Better accessibility of international relations via the RUPs
- Better accessibility of German consignees for foreign partners via the RUPs
Connection of the CTL RUPs
The implementation of the new routing for network coverage will be applied from autumn 2021. The multi-HUB transports will be established step by step from August. On 02.08.2021 the RUPs Aurach, Grolsheim and Bottrop will be connected and on 06.09.2021 the implementation of the route Lauenau to Aurach and vice versa will take place. In the future, CTL will operate daily fixed-route services between the regional HUBs.
„By connecting the regional locations and the associated expansion of the area covered, CTL has succeeded in further strengthening the stability in the network,” emphasises Tobias Jüngling, Head of Network Development. Furthermore, he highlights the development towards higher flexibility as well as an optimised main run utilisation in groupage outbound as a significant advantage due to the additional production possibility.
The classic HUB & Spoke system with more than 350 scheduled services per night and daily shuttle services between the RUPs and the central HUB in Homberg is thus complemented by a multi hub system. The individual CTL cooperation partners and their customers are thus offered a second production option in the network. The basis of maximum area coverage will be supplemented by the opening of the location in Leipzig from September 2021. The flexible utilisation planning of the main runs through several production options as well as optimised and possibly more cost-effective transport routes will result in advantages for the partners. Furthermore, a significant reduction in CO2 emissions will be achieved, as the route via Homberg is no longer necessary.