Lufthansa and IBM Pilot Quantum Inventory Balancing in Cargo Terminals

In a significant leap forward for air cargo optimization, Lufthansa Cargo, IBM Research, and DHL have jointly launched a quantum computing pilot program to optimize inventory balancing and load distribution across air freight terminals. The project is currently live at Frankfurt Airport, one of the largest and busiest cargo hubs in Europe, handling more than 2 million metric tons of freight annually.

By leveraging IBM’s Qiskit Runtime, a leading quantum software platform hosted on a hybrid quantum-classical cloud infrastructure, the project seeks to address one of the most stubborn inefficiencies in air freight logistics: dynamic rebalancing of cargo inventories in real time, especially in the face of temperature sensitivity, equipment constraints, and volatile demand patterns.

This marks one of the most advanced applications of quantum optimization algorithms in commercial air freight environments to date—and could soon reshape how cargo moves globally, particularly in high-stakes verticals such as pharmaceuticals, semiconductors, and aerospace components.

Why Quantum Inventory Balancing Matters

In air freight terminals, especially large multi-tenant ones like those operated by Lufthansa Cargo at Frankfurt, managing the flow and placement of thousands of cargo units every day is a highly complex task. Traditional inventory systems rely on pre-defined heuristics and reactive adjustment protocols, but these often fall short in environments where:

• Flight schedules shift due to weather or regulatory delays

• Cargo arrives late or early due to upstream supply chain variance

• Temperature-controlled goods require rapid handling and rerouting

• Storage zones are constrained by weight distribution, security access, and personnel availability

As such, real-time cargo rebalancing—the ability to dynamically reposition, reprioritize, or reschedule items based on evolving constraints—has become a major operational bottleneck.

“Cargo terminals are like living organisms—everything is connected, and a delay in one zone can ripple through the entire system,” says Dr. Laura Weigel, Director of Innovation at Lufthansa Cargo. “Our traditional software systems struggle when the number of variables crosses a certain threshold. Quantum computing gives us a way to look at the entire system holistically.”

Quantum Optimization in Action: The Pilot at Frankfurt

At the heart of this pilot is IBM’s Qiskit Runtime, a quantum execution environment designed for low-latency hybrid workflows. The Lufthansa Cargo team, working in close collaboration with IBM’s quantum engineers and DHL’s logistics AI group, developed a set of quantum-classical co-processing models tailored to the needs of high-volume cargo hubs.

Key Operational Targets:

1. Real-time Load Distribution
   Quantum optimization algorithms help determine how to distribute containers across staging zones to minimize ground congestion and balance labor requirements.

2. Dynamic Reallocation Under Delay Scenarios
   If a flight is delayed or canceled, quantum algorithms quickly identify alternative routing or storage options for affected cargo—without cascading delays elsewhere.

3. Cold Chain Prioritization
   Time- and temperature-sensitive shipments (such as biologics or perishable goods) are given quantum-prioritized routing paths that minimize exposure to non-controlled environments.

4. Space-Time Matching
   Quantum models analyze future space availability based on real-time schedules and project optimal staging areas to reduce unnecessary cargo movements.

“We're leveraging quantum systems to tackle multi-constraint, non-linear problems that classical solvers can’t efficiently handle under real-time pressure,” explained Martin Steinberg, IBM Quantum’s logistics solutions architect.

The Technical Stack: Bridging Quantum and Classical

The pilot combines multiple layers of technology in a hybrid framework:

• IBM Qiskit Runtime: Used to execute Quantum Approximate Optimization Algorithm (QAOA) and Variational Quantum Eigensolvers (VQE) to evaluate cargo arrangement permutations in near real-time.

• DHL’s Logistics AI Engine: Adapted to interact with quantum-aware APIs that facilitate decision-sharing between the classical scheduling engine and the quantum optimizer.

• Custom Digital Twin Models: Lufthansa Cargo developed a digital twin of the Frankfurt terminal that allows for side-by-side simulation of quantum vs. traditional routing scenarios.

• Hybrid Orchestration Layer: A coordination mechanism monitors whether the quantum computation outperforms classical results, and chooses the faster or more accurate path.

This architecture ensures that quantum is not replacing, but rather enhancing the capabilities of existing warehouse management and terminal operations systems.

Early Results: Meaningful Operational Gains

During the initial trial phase—conducted over 60 days from March to April 2024—the pilot demonstrated significant improvements in core performance indicators:

• 20% reduction in ground delays for re-routed or late-arriving shipments.

• 17% improvement in cold-chain compliance, ensuring critical cargo remained within safe temperature ranges during unexpected reallocation.

• 12% faster terminal cycle times, especially during night-shift and peak inbound hours.

• 25% improvement in space utilization efficiency, meaning less wasted staging area and more fluid cargo movement.

These gains translate into not just cost savings, but also improved service-level agreement (SLA) compliance, particularly for pharma and high-tech shippers that demand strict time and temperature integrity.

“Every hour saved in cargo rebalancing reduces the risk of product loss or breach of delivery timelines,” said Anja Becker, Operations Lead for Lufthansa’s Pharma Hub division. “Quantum tools give us a predictive edge we never had before.”

DHL’s Role and the API Breakthrough

As one of the world’s largest logistics operators, DHL brought its AI-enhanced terminal management software to the partnership, which now operates in over 40 cargo facilities worldwide. For this pilot, DHL’s developers created quantum-aware APIs, allowing classical AI systems to hand off optimization tasks to IBM’s quantum backend when certain thresholds or complexity limits are reached.

This adaptive model means the system can learn when to call quantum solvers, maximizing computational efficiency and ensuring the right tool is used for each scenario.

“It’s about co-processing, not replacement,” noted Rajesh Patel, VP of AI Systems at DHL. “Quantum augments our models for the edge cases where classical systems slow down or oversimplify.”

DHL plans to test these APIs in additional locations, including Hong Kong and Chicago O’Hare, where similar inventory challenges exist under even tighter turnaround schedules.

Industry Implications: Redefining Cargo Terminal Operations

The success of the Frankfurt pilot is not just a one-off experiment—it signals a broader inflection point in how quantum computing is being applied in real-world logistics environments.

Several key industry implications are emerging:

• Higher Margins in Cold Chain: As quantum rebalancing reduces spoilage and compliance issues, pharmaceutical companies and food exporters can achieve better margins and reliability.

• Smarter Infrastructure Planning: By modeling space constraints and flow optimizations at a quantum level, terminal designers can create more agile layouts for future hubs.

• Decarbonization Support: Fewer delays and better space use reduce energy demands for lighting, cooling, and ground handling equipment—contributing to sustainability goals.

• Enhanced SLA Compliance: Quantum-powered systems offer faster, smarter responses to unexpected delays, giving freight operators a critical edge in customer satisfaction.

“In today’s high-stakes logistics environment, seconds matter,” said Dr. Heinz Schröder, a transport economist at the University of Stuttgart. “Quantum computing offers the kind of micro-efficiencies that, when scaled, become massive cost and time savers.”

What’s Next: Expansion and Global Collaboration

Following the pilot’s strong results, Lufthansa Cargo and IBM plan to extend the quantum system’s footprint to additional high-volume nodes in their network, including:

• Chicago O’Hare (ORD) – North America’s leading pharma cargo hub

• Mumbai’s Chhatrapati Shivaji International (BOM) – a key gateway for temperature-controlled goods into South Asia

• Bangkok Suvarnabhumi Airport (BKK) – where DHL already operates an AI-equipped logistics center

Discussions are also underway with Eurocontrol, the pan-European air navigation body, to integrate quantum-enhanced cargo flow data into broader network models for slot assignment and regional flow balancing.

In parallel, IBM has confirmed that it is developing an open standard framework for quantum-enhanced logistics optimization that could be adopted by other airlines, cargo handlers, and freight integrators worldwide.

“What Lufthansa and DHL are piloting now will be standard within five years,” predicted Dr. Priya Rao, global transport lead at Quantum Strategy Partners. “It’s the natural evolution of logistics AI.”

Conclusion: The Quantum Turn in Air Freight

As quantum computing continues to move from theoretical promise to operational reality, the logistics sector is emerging as a proving ground for hybrid optimization at scale.

The Lufthansa–IBM–DHL pilot at Frankfurt Airport shows how quantum systems can enhance—not replace—traditional logistics infrastructure. With measurable reductions in ground delays, better cold chain outcomes, and more adaptive cargo placement, the case for quantum in logistics is becoming clearer with each trial.

For a sector under constant pressure to move faster, cheaper, and more sustainably, quantum computing may offer one of the few technological breakthroughs capable of meeting those demands all at once.

And as this pilot transitions into global rollout, it sets a precedent for what modern air freight terminals may soon look like: AI-driven, digitally twinned, and quantum-optimized from the cargo floor to the cloud.