Switzerland-based Kuehne+Nagel is a worldwide leader in logistics. About 350 people work in the Ukrainian subsidiary and the company provides a full range of logistics services: Sea, air, road and contract logistics as well as customs brokerage services.
On the 24th of February 2022 Russian troops took control of Antonov airport, close to Gostomel, Kuehne+Nagel’s main location in Ukraine. This resulted in the loss of significant warehouse capacity.
Despite this, the company quickly managed to resume operations and provide stability and continuity in uncertain circumstances, for both employees and customers. The company has adapted to the new environment and is actively looking towards the future to ensure its services match the needs of the country.
As a responsible global business, last July the company completely withdrew from the Russian and Belarusian markets.
Help for Ukraine
Immediately following the start of the war, the company allocated 10 million Swiss francs (over 10.1 million dollars) for the free transportation and storage of humanitarian goods provided by global international humanitarian organizations and international donors.
In cooperation with international humanitarian organizations, the Kuehne+Nagel Emergency & Relief Logistics team organized warehouses for humanitarian aid in Poland and Hungary. So far since the beginning of the war, Kuehne+Nagel has delivered more than 600 tons of humanitarian goods.
Once hostilities ended in the Kyiv region, Kuehne+Nagel contributed to the resuming of the Vyshneve customs clearance point operations located at its location in Gostomel. The area of the customs clearance point was doubled, shortening the length of customs clearance for deliveries.
Supporting the team
On 24th of February, after the first attacks, operations were suspended as the safety of employees was the first priority.
The next step was evacuation. A proportion of employees and their families left their homes or the country.
Employees who left the country were offered opportunities in other Kuehne+Nagel entities.
"Employees were given financial support for the first time. All who evacuated to European countries and wanted to stay there to work, were given jobs. The company made a lot of effort to find the most suitable job for everyone," says Iryna Shabatyn, National Manager Kuehne+Nagel in Ukraine.
Kuehne+Nagel also created the "Colleagues 4 Colleagues" charity fund to help Ukrainian employees affected by the war.
Colleagues from all over the world joined in fundraising for the fund. The company doubled the amount of funds collected, which were directed to the restoration and repair of employees’ housing, which was destroyed or damaged because of hostilities.
"A large number of our workers lived in Gostomel, Mostyshchi, Irpen, and Buchi and they suffered a lot. We collected 340,000 euros (about UAH 14 million), which we distributed to people to re-build their homes," says Iryna.
Responsibility to partners
Due to hostilities in Gostomel, the company lost large areas of warehouse space. However, by mid-March 2022 — less than a month after the start of the war — the company fully resumed operations in Ukraine.
"Thanks to existing good relationships with our customers, they continued to place orders and trusted the team to deliver, despite the complete uncertainty. Thanks to the experience and knowledge of the team we were able to fulfill their expectations with no issues," says Iryna.
"Once most employees had found safe places, we could focus on the job. Initially, we focused on deliveries that were on hold, with new requests coming through by the end of March.
To guarantee business continuity, each location, whether warehouse or office, is equipped with everything necessary to operate autonomously in case of loss of communication or power supply.
Adapting and overcoming
After the war started, the company invested in the development of services that were in demand, such as logistics for the pharmaceutical industry.
"In order to comply with all the requirements of pharma logistics, we purchased a special vehicle for the transportation of pharmacological products in accordance with the applicable standards. Many international companies were able to manage pharma goods in Ukraine before the war. Now, most of them are not prepared to work in Ukraine. Therefore, we continued to invest in the development of local business. Our team received GxP-certification in Ukraine and helped several Ukrainian carriers to adapt their standards to a European level," notes Oleksandr Toryanyk, Head of Marketing and Sales Kuehne+Nagel in Ukraine.
Now the company is focused on industrial cargo, which is needed both for post-war reconstruction and current critical issues. Kuehne+Nagel in Ukraine also cooperates with world leaders in the energy industry at the local level and coordinates with state bodies and charitable companies.
To paraphrase a well-known saying - in dark times, bright companies are clearly visible. Businesses that demonstrate transparency, social responsibility and a humanitarian focus especially in difficult times, will be the partners of choice for customers going forward.