Future-proof Intralogistics at LogiMAT

In dynamic times characterized by crises the logistics sector and intralogistics industry steps up to deliver strategic competitive advantage. As one of the market leaders, SSI Schaefer’s trade fair presence at LogiMAT 2023 in Stuttgart, Germany, shows how its customers are well positioned for the future with comprehensive systems and solutions. Steffen Bersch, CEO of the SSI Schaefer Group, explains the requirements: “We see a high need for investment in automation and efficiency-increasing technologies. With our know-how and wide range of innovative products, software and services, we present ourselves as a partner to jointly realize the customer-specific resilient logistics structure consisting of flexible, scalable and sustainable systems.”

The cornerstones of future-proof intralogistics are the comprehensive portfolio of customized software, the connectivity of the systems and the innovative technologies within the SSI Schaefer Group. This also includes companies such as robotics specialist RO-BER, SAP specialist SWAN and robotics and AGV expert DS Automotion, which will become a full member of the SSI Schaefer Group on March 1, 2023.

For fully automated single piece picking, SSI Schaefer will present its advanced piece picking application at the booth in Hall 1. The highlights of the system, in addition to the patented gripping point calculation, are additional functions such as Pick & Place, AI-supported object recognition, and 100% product verification, which is important for the pharmaceutical industry, among others. Additional highly automated intralogistics solutions will be presented at consulting islands, including complex robotics applications with central shuttle and overhead conveyor technology for efficient omnichannel logistics.

Of particular interest to SMEs are ‘plug & play’ system combinations for partial automation. Processes can be accelerated, spaces condensed, and ergonomic workflows integrated in a simple way and economically. The building blocks of these solutions, some of which will be demonstrated at the booth, include automated guided vehicles, autonomous mobile robots, mobile racking, channel storage solutions with the SSI ORBITER® and the SSI LOGIMAT® vertical lift module.

SSI Schaefer’s own WAMAS logistics software will be brought to life digitally at the trade fair with all its products and modules. Via an augmented reality tool, booth visitors can explore a virtual warehouse and understand the interaction of the WAMAS modules with the equipment and systems. SSI Schaefer’s SAP solutions will be presented at the booth by SWAN, also a member of the SSI Schaefer Group. Intelligent applications being developed in the areas of predictive maintenance, digital twin and cyber security services, point the way to the intralogistics future.

The topics of the planned expert panel discussions, in which customers, science representatives and SSI Schaefer experts will participate, will show the pulse of intralogistics. They take place live daily at the trade show booth.

SSI Schaefer at LogiMAT 2023 in Hall 1, Booth D21. Please also visit other members of the SSI Schaefer Group who are exhibiting at the fair:

• DS Automotion in Hall 6, Booth D05
• RO-BER in Hall 5, Booth F17

Future-proof Intralogistics at LogiMAT

In dynamic times characterized by crises the logistics sector and intralogistics industry steps up to deliver strategic competitive advantage. As one of the market leaders, SSI Schaefer’s trade fair presence at LogiMAT 2023 in Stuttgart, Germany, shows how its customers are well positioned for the future with comprehensive systems and solutions. Steffen Bersch, CEO of the SSI Schaefer Group, explains the requirements: “We see a high need for investment in automation and efficiency-increasing technologies. With our know-how and wide range of innovative products, software and services, we present ourselves as a partner to jointly realize the customer-specific resilient logistics structure consisting of flexible, scalable and sustainable systems.”

The cornerstones of future-proof intralogistics are the comprehensive portfolio of customized software, the connectivity of the systems and the innovative technologies within the SSI Schaefer Group. This also includes companies such as robotics specialist RO-BER, SAP specialist SWAN and robotics and AGV expert DS Automotion, which will become a full member of the SSI Schaefer Group on March 1, 2023.

For fully automated single piece picking, SSI Schaefer will present its advanced piece picking application at the booth in Hall 1. The highlights of the system, in addition to the patented gripping point calculation, are additional functions such as Pick & Place, AI-supported object recognition, and 100% product verification, which is important for the pharmaceutical industry, among others. Additional highly automated intralogistics solutions will be presented at consulting islands, including complex robotics applications with central shuttle and overhead conveyor technology for efficient omnichannel logistics.

Of particular interest to SMEs are ‘plug & play’ system combinations for partial automation. Processes can be accelerated, spaces condensed, and ergonomic workflows integrated in a simple way and economically. The building blocks of these solutions, some of which will be demonstrated at the booth, include automated guided vehicles, autonomous mobile robots, mobile racking, channel storage solutions with the SSI ORBITER® and the SSI LOGIMAT® vertical lift module.

SSI Schaefer’s own WAMAS logistics software will be brought to life digitally at the trade fair with all its products and modules. Via an augmented reality tool, booth visitors can explore a virtual warehouse and understand the interaction of the WAMAS modules with the equipment and systems. SSI Schaefer’s SAP solutions will be presented at the booth by SWAN, also a member of the SSI Schaefer Group. Intelligent applications being developed in the areas of predictive maintenance, digital twin and cyber security services, point the way to the intralogistics future.

The topics of the planned expert panel discussions, in which customers, science representatives and SSI Schaefer experts will participate, will show the pulse of intralogistics. They take place live daily at the trade show booth.

SSI Schaefer at LogiMAT 2023 in Hall 1, Booth D21. Please also visit other members of the SSI Schaefer Group who are exhibiting at the fair:

• DS Automotion in Hall 6, Booth D05
• RO-BER in Hall 5, Booth F17

Airbridge for Turkey Humanitarian Relief

Amid widespread devastation caused by the recent earthquake people in the affected areas in Turkey and Syria need all the humanitarian relief available as soon as possible. UPS has put its worldwide smart logistics network to the task to transport relief supplies.

A Boeing 767 is currently taking off every night from the UPS Air Hub at Cologne Bonn airport, transporting urgently needed goods to Turkey from national and international aid organizations, UPS employees, citizens, and companies.

The willingness to donate in the region was so extensive that on-site donations are not currently being accepted. In-kind and monetary donations should instead be given to other aid organizations providing support.

The UPS Air Hub at Cologne Bonn Airport is UPS’s European air freight hub for international transport of goods. As a European hub, it is not only a platform to service customers but is also central to disaster relief efforts and support. The UPS Air Hub was also able to demonstrate its strategically important position and its reliability in the handling of shipments for the worldwide distribution of vaccines.

Relief supplies and donations receive freight space within the UPS network

In addition to the Cologne-Istanbul airbridge, UPS and The UPS Foundation have taken other measures to provide assistance where it is most needed. This includes:

• Pledging more than US$1 million in global logistics services.
• Working with the World Food Program, UNHCR and International Red Cross & Red Crescent to fly in relief items from Dubai.
• Offering transport capacity in UPS trucks for the Istanbul city government and NeedsMap, a local NGO that UPS supports.
• Activating EDUARDO, an emergency air dashboard created by skilled UPS volunteers to help humanitarian relief organizations quickly access all available flight capacity available at airports across Turkey.

Frank Jørgensen, President of UPS Germany, Austria and Switzerland, told us “Our hearts and thoughts are with the people of Turkey and Syria. Our sympathy also goes to the many relatives – including numerous UPS employees – of the people affected in the earthquake area. Above all, we help by using what we have: our committed employees with their expertise and our global logistics network.”

Airbridge for Turkey Humanitarian Relief

Amid widespread devastation caused by the recent earthquake people in the affected areas in Turkey and Syria need all the humanitarian relief available as soon as possible. UPS has put its worldwide smart logistics network to the task to transport relief supplies.

A Boeing 767 is currently taking off every night from the UPS Air Hub at Cologne Bonn airport, transporting urgently needed goods to Turkey from national and international aid organizations, UPS employees, citizens, and companies.

The willingness to donate in the region was so extensive that on-site donations are not currently being accepted. In-kind and monetary donations should instead be given to other aid organizations providing support.

The UPS Air Hub at Cologne Bonn Airport is UPS’s European air freight hub for international transport of goods. As a European hub, it is not only a platform to service customers but is also central to disaster relief efforts and support. The UPS Air Hub was also able to demonstrate its strategically important position and its reliability in the handling of shipments for the worldwide distribution of vaccines.

Relief supplies and donations receive freight space within the UPS network

In addition to the Cologne-Istanbul airbridge, UPS and The UPS Foundation have taken other measures to provide assistance where it is most needed. This includes:

• Pledging more than US$1 million in global logistics services.
• Working with the World Food Program, UNHCR and International Red Cross & Red Crescent to fly in relief items from Dubai.
• Offering transport capacity in UPS trucks for the Istanbul city government and NeedsMap, a local NGO that UPS supports.
• Activating EDUARDO, an emergency air dashboard created by skilled UPS volunteers to help humanitarian relief organizations quickly access all available flight capacity available at airports across Turkey.

Frank Jørgensen, President of UPS Germany, Austria and Switzerland, told us “Our hearts and thoughts are with the people of Turkey and Syria. Our sympathy also goes to the many relatives – including numerous UPS employees – of the people affected in the earthquake area. Above all, we help by using what we have: our committed employees with their expertise and our global logistics network.”

Pharmacy Boasts 1st Piece-picking Solution

Swedish online pharmacy Apotea automated its logistics centre last Autumn with a piece-picking solution to quickly, easily, and smoothly deliver approximately 50,000 orders a day to its customers. Following international cooperation between Element Logic, AutoStore, RightHand Robotics and Apotea, the centre fully integrated eOperator piece-picking robots with an AutoStore solution, a world first.

Pharmacy products are one of the fastest-growing segments of both Swedish and European e-commerce. Apotea.se is Sweden’s largest online pharmacy, with the country’s most comprehensive range of over-the-counter products and prescription drugs.

“During the pandemic, we looked at expanding the capacity to go from delivering 50,000 orders to 100,000 orders. That’s when we started looking at Element Logic and AutoStore. When we thought of installing AutoStore, it was precisely the ability to be able to robotise the picking that was one of the driving forces,” says Pär Svärdson, CEO at Apotea.

Apotea strives to deliver the best customer experience in the industry through fast and accurate deliveries. In Apotea’s logistics centre in Morgongåva, Sweden, the company has invested in automation from Element Logic, which takes care of the entire warehouse process. The goal is to optimise delivery and efficiency and cope with large variations in incoming orders.

The installation consists of 20,000 bins (with space for a total of 25,000), 30 AutoStore robots (R5) and four carousel ports, three of which are served by eOperator piece-picking robots. Initially, the new capacity at Apotea is estimated to be 800 order lines per hour. The installation is a collaboration between Element Logic, AutoStore, RightHand Robotics and Apotea. At the end of 2022, all CEOs and founders from the respective companies met at Apotea to inaugurate the solution.

“For us, it was essential to have a solution that can handle variations in product size and order intake, and that can expand as we grow. This investment helps us become more efficient, which makes it easier for us to exceed our customers’ expectations,” says Svärdson.

“To Apotea, the automation solution of AutoStore, eOperator and other features from Element Logic goes splendidly with their combined targets of optimal warehouse efficiency and environmental care. We look forward to following Apotea’s journey towards highly accurate deliveries along with saved energy, reduced noise levels and ergonomically friendly working hours,” says Dag-Adler Blakseth, CEO at Element Logic Group.

Apotea’s investment in eOperator, the world’s most advanced piece-picking robot solution, makes them pioneers internationally by using it to pick from an AutoStore installation. eOperator picks automatically 24/7, requiring no light at night. Through machine learning, eOperator automatically selects the best way to handle an item to be picked, increasing order capacity, goods handling, and delivery time.

“eOperator makes it possible to deliver quickly to customers, even at nights, weekends and bank holidays. You get a 24-hour operation, which is completely exceptional. We get better efficiency and faster deliveries, making everything cheaper and more efficient. It became natural to say, yes, let’s go,” continues Svärdson.

Apotea is not only Sweden’s market-leading online pharmacy, but also the country’s most sustainable e-commerce company, according to Sustainable Brand Index 2020 and 2021. Apotea‘s goal is to reduce the climate footprint throughout the entire chain, from production to the end consumer. On the roof of their logistics centre, you will find one of Sweden’s most extensive solar cell facilities that supply the entire AutoStore system.

“Our goal is to become Sweden’s most sustainable company, which is both brave and ambitious. It is vital for humanity and our environment, but also to be competitive. I believe that future customers will demand a different approach to sustainability from companies than today,” explains Svärdson.

AutoStore is a modular and scalable robotic solution for storing products efficiently. Compared to a manual warehouse, picking performance is ten times higher with AutoStore. The system consists of a grid where robots pick and deliver goods on the smartest available routes. The robots work around the clock and recharge when needed. At Apotea’s ports, the picked goods are delivered to both human operators and three eOperator piece-picking robots.

“Apotea has had a fantastic growth journey in Swedish e-commerce. By connecting an AutoStore system with Element Logic‘s smart piece-picking solution, eOperator, and other automation, we can help them continue to offer their customers fast and accurate deliveries and improved order capacity and goods handling,” explains Anders Bohlin, Sales Director at Element Logic Sweden.

Facts about Element Logic’s installation:
• 20,000 bins (with space for a total of 25,000)
• 30 AutoStore robots (R5)
• 4 carousel ports
• 3 piece-picking robots (eOperator)
• 800 order lines per hour (calculated capacity)
• 24/7 operations

Direct-to-Consumer Evolves

A newly released report on the rise of Direct-to-Consumer (DTC) found that decision-makers across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale businesses in North America find DTC channels key to unlocking better customer experiences and achieving higher profit margins.

The research, commissioned by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, highlights these findings about the rise of Direct-to-Consumer models:

• When asked about key drivers for using DTC models over a third (36%) of respondents highlighted access to more customer data to drive business strategy and a further 31% referenced reduced costs
• Almost 9 out of 10 respondents (89%) have seen increased sales through DTC channels over the past 12 months

This report indicates a massive trend that DTC – which will contribute more than one-half of overall sales by 2026 – enhances the customers experience in tandem with ensuring profitability of organization as the biggest benefits of DTC. Further to this the report also reveals that sustainable practices are an emerging focus for DTC brands. Almost half (48%) of the sample say they have the capability to “easily combine separate orders for delivery at the same time”, an approach that reduces environmental emissions by bringing down the number of deliveries needed.

The focus on sustainability is also gathering ground across the wider supply chain, with 30% saying they are looking toward growing the proportion of stock sourced from nearshore suppliers. Long-term scalability and future success with DTC will require proactive moves toward enhanced efficiencies and operational savings. For example, investing in technologies that allow different retailers to collaborate on delivery runs, or incentivize consumers to go for a more sustainable option through a better price on consolidated orders, would benefit everyone.

Deposco’s complimentary report, ‘The Rise of Direct-to-Consumer in North America: How businesses can break through the barriers and make a success of DTC channels’, is now available.

Deposco’s Bright Suite of omnichannel fulfilment supply chain applications is how fast-growing companies rapidly scale their warehouse management and order management operations, so they can see what inventory they’ve got, where it is, and where to position it to fulfil demand when It’s Grow Time™. It’s the only solution that provides this much actionable insight into both your supply chain and the broader marketplace. Streamlined into One Solution, One Focus, One Team. That’s why over 3,000 of the world’s fastest-growing ecommerce and DTC businesses rely on Deposco. We’re supporting over $10 billion in sales and over 51 million consumer orders annually. Last year, we saw total shipment growth increase by 78%.

Direct-to-Consumer Evolves

A newly released report on the rise of Direct-to-Consumer (DTC) found that decision-makers across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale businesses in North America find DTC channels key to unlocking better customer experiences and achieving higher profit margins.

The research, commissioned by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, highlights these findings about the rise of Direct-to-Consumer models:

• When asked about key drivers for using DTC models over a third (36%) of respondents highlighted access to more customer data to drive business strategy and a further 31% referenced reduced costs
• Almost 9 out of 10 respondents (89%) have seen increased sales through DTC channels over the past 12 months

This report indicates a massive trend that DTC – which will contribute more than one-half of overall sales by 2026 – enhances the customers experience in tandem with ensuring profitability of organization as the biggest benefits of DTC. Further to this the report also reveals that sustainable practices are an emerging focus for DTC brands. Almost half (48%) of the sample say they have the capability to “easily combine separate orders for delivery at the same time”, an approach that reduces environmental emissions by bringing down the number of deliveries needed.

The focus on sustainability is also gathering ground across the wider supply chain, with 30% saying they are looking toward growing the proportion of stock sourced from nearshore suppliers. Long-term scalability and future success with DTC will require proactive moves toward enhanced efficiencies and operational savings. For example, investing in technologies that allow different retailers to collaborate on delivery runs, or incentivize consumers to go for a more sustainable option through a better price on consolidated orders, would benefit everyone.

Deposco’s complimentary report, ‘The Rise of Direct-to-Consumer in North America: How businesses can break through the barriers and make a success of DTC channels’, is now available.

Deposco’s Bright Suite of omnichannel fulfilment supply chain applications is how fast-growing companies rapidly scale their warehouse management and order management operations, so they can see what inventory they’ve got, where it is, and where to position it to fulfil demand when It’s Grow Time™. It’s the only solution that provides this much actionable insight into both your supply chain and the broader marketplace. Streamlined into One Solution, One Focus, One Team. That’s why over 3,000 of the world’s fastest-growing ecommerce and DTC businesses rely on Deposco. We’re supporting over $10 billion in sales and over 51 million consumer orders annually. Last year, we saw total shipment growth increase by 78%.

Sevensense Robotics Present at ProMAT

Automation has the potential to exponentially increase efficiency, profitability, and safety in the logistics and manufacturing sectors, as will be seen at ProMAT Chicago. So far, the lack of a robust, yet flexible navigation technology has limited the scope and scale of automation in material handling operations.

Furthermore, the AMR manufacturing sector is extremely competitive. Most of its players rely on navigation technologies like 2D LiDAR SLAM or magnetic line following: proven in the field but limited in performance. To gain a competitive advantage, many AMR manufacturers are looking into new technologies; but often they lack the resources, time, expertise, and talent to develop them.

This industry landscape is now changing with the arrival of the VSLAM navigation technology developed by Sevensense Robotics. The Alphasense Autonomy Evaluation Kit accelerates the development and deployment of automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) while improving their performance and expanding their operational capabilities.

“We observed that many AMR manufacturers considered Alphasense Autonomy as an option to incorporate 3D Visual Autonomy capabilities into their offering but integrating, testing, and validating the fit of this navigation technology in their own vehicles and their use cases still required more expertise and time than they were able to invest without any in-house validation of the technology. The Alphasense Autonomy Evaluation Kit offers them an off-the-shelf option to easily and quickly test Alphasense Autonomy and take a generational technological leap forward,” says Gianluca Cesari, CBDO at Sevensense Robotics.

Alphasense Autonomy leverages the 360 degrees view of the vehicle’s surroundings and cutting-edge Visual SLAM technology to offer <0.3 inches (<4 mm) precise and reliable positioning capabilities in all indoor and outdoor environments, even over uneven floors and ramps. Without any need for additional infrastructure. The Alphasense Autonomy Evaluation Kit allows mobile robot manufacturers (AGV/AMR OEMs) to test the Alphasense Autonomy 3D Visual Autonomy technology quickly and easily.

The kit is a plug-and-play software and hardware bundle that combines the Alphasense multi-camera sensor with Alphasense Autonomy and Sevensense’s proprietary software stack and configuration tools that dramatically reduce the time required to integrate a fully functioning Visual SLAM navigation system on a vehicle. The hardware consists of a compact device including 5 factory-calibrated cameras and a computer unit with pre-installed software. The system can be easily mounted on top of any vehicle and requires a minimal amount of connections such as power and ethernet. Optionally, additional 3rd party sensors can also be connected.

Thanks to a web-based interface, the user is guided through a simple step-by-step installation wizard to calibrate, set up the interfaces, and configure and deploy the target AMR. With this, any technical department can now run and test Alphasense Autonomy on their own vehicles. The Evaluation Kit enables all Alphasense Autonomy features for trial: from easily teaching an A-to-B motion layout to performing virtual line following with obstacle avoidance. All this, while delivering the same performance as the series Alphasense Autonomy product in terms of robustness and repeatability.

On top of the provided in-depth documentation, the device contains a 4G connectivity module that allows Sevensense to provide immediate support by directly accessing the unit. Together with access to Sevensense’s service desk, this level of support allows customers to confidently perform their technical evaluations in little time.

In 2022, during a closed trial, the Alphasense Autonomy Evaluation Kit already helped several AMR manufacturers to reap the benefits of the Sevensense Visual SLAM navigation solution. Now, Sevensense is supporting these early-adopter customers going to market with their new AMRs equipped with Alphasense Autonomy. In a broader industry context, the DHL Trend Radar indicates that 3D visual autonomy technology is currently maturing and will exponentially increase its potential within the next 5 years.

The Sevensense Robotics team will be offering live demos at booth #N8539 from Monday, March 20th to Thursday, March 23rd at ProMAT 2023 show in Chicago IL.

 

Sevensense Robotics Present at ProMAT

Automation has the potential to exponentially increase efficiency, profitability, and safety in the logistics and manufacturing sectors, as will be seen at ProMAT Chicago. So far, the lack of a robust, yet flexible navigation technology has limited the scope and scale of automation in material handling operations.

Furthermore, the AMR manufacturing sector is extremely competitive. Most of its players rely on navigation technologies like 2D LiDAR SLAM or magnetic line following: proven in the field but limited in performance. To gain a competitive advantage, many AMR manufacturers are looking into new technologies; but often they lack the resources, time, expertise, and talent to develop them.

This industry landscape is now changing with the arrival of the VSLAM navigation technology developed by Sevensense Robotics. The Alphasense Autonomy Evaluation Kit accelerates the development and deployment of automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) while improving their performance and expanding their operational capabilities.

“We observed that many AMR manufacturers considered Alphasense Autonomy as an option to incorporate 3D Visual Autonomy capabilities into their offering but integrating, testing, and validating the fit of this navigation technology in their own vehicles and their use cases still required more expertise and time than they were able to invest without any in-house validation of the technology. The Alphasense Autonomy Evaluation Kit offers them an off-the-shelf option to easily and quickly test Alphasense Autonomy and take a generational technological leap forward,” says Gianluca Cesari, CBDO at Sevensense Robotics.

Alphasense Autonomy leverages the 360 degrees view of the vehicle’s surroundings and cutting-edge Visual SLAM technology to offer <0.3 inches (<4 mm) precise and reliable positioning capabilities in all indoor and outdoor environments, even over uneven floors and ramps. Without any need for additional infrastructure. The Alphasense Autonomy Evaluation Kit allows mobile robot manufacturers (AGV/AMR OEMs) to test the Alphasense Autonomy 3D Visual Autonomy technology quickly and easily.

The kit is a plug-and-play software and hardware bundle that combines the Alphasense multi-camera sensor with Alphasense Autonomy and Sevensense’s proprietary software stack and configuration tools that dramatically reduce the time required to integrate a fully functioning Visual SLAM navigation system on a vehicle. The hardware consists of a compact device including 5 factory-calibrated cameras and a computer unit with pre-installed software. The system can be easily mounted on top of any vehicle and requires a minimal amount of connections such as power and ethernet. Optionally, additional 3rd party sensors can also be connected.

Thanks to a web-based interface, the user is guided through a simple step-by-step installation wizard to calibrate, set up the interfaces, and configure and deploy the target AMR. With this, any technical department can now run and test Alphasense Autonomy on their own vehicles. The Evaluation Kit enables all Alphasense Autonomy features for trial: from easily teaching an A-to-B motion layout to performing virtual line following with obstacle avoidance. All this, while delivering the same performance as the series Alphasense Autonomy product in terms of robustness and repeatability.

On top of the provided in-depth documentation, the device contains a 4G connectivity module that allows Sevensense to provide immediate support by directly accessing the unit. Together with access to Sevensense’s service desk, this level of support allows customers to confidently perform their technical evaluations in little time.

In 2022, during a closed trial, the Alphasense Autonomy Evaluation Kit already helped several AMR manufacturers to reap the benefits of the Sevensense Visual SLAM navigation solution. Now, Sevensense is supporting these early-adopter customers going to market with their new AMRs equipped with Alphasense Autonomy. In a broader industry context, the DHL Trend Radar indicates that 3D visual autonomy technology is currently maturing and will exponentially increase its potential within the next 5 years.

The Sevensense Robotics team will be offering live demos at booth #N8539 from Monday, March 20th to Thursday, March 23rd at ProMAT 2023 show in Chicago IL.

 

Biofuel to Reduce Supply Chain Emissions

DB Schenker is expanding its green ocean freight services and has secured an arrangement to reduce supply chain emissions by using 12,000 metric tons of biofuel component for all of its own consolidated cargo, less-than-container load (LCL), full-container-load (FCL) and refrigerated containers (reefer containers), from MSC Mediterranean Shipping Company, the world’s largest container line.

The amount of biofuel purchased is enough to save an additional 35,000 metric tons of CO2 equivalents (CO2e) along the entire production chain (well-to-wake) in the market. The equivalent of around 30,000 standard containers (TEU) may be shipped with net-zero CO2 emissions, depending on how the fuel is used during navigation.

The purchase agreement signed this month represents one of the largest carbon-insetting biofuel deals between a freight forwarder and a shipping company. It sets out the use of certified sustainable, second-generation biofuels – derived from used cooking oil – instead of conventional fossil-based marine fuel. The 12,000 metric tons of biofuel component will be blended between 20 and 30%, resulting in approximately 50,000 metric tons of blended biofuel to be used in MSC’s container ships. The agreement allows DB Schenker to offer its customers an off-the-shelf product that enables net-zero ocean transport.

Certified emission reduction for customers’ carbon footprint

This partnership is the latest impressive example of DB Schenker’s commitment to clean logistics and is another solid contribution to increasing the demand for alternative fuels in the industry. Similar to net-zero flights using sustainable aviation fuel (SAF), customers can now book regular net-zero ocean transport and receive an annual certificate of their emission reduction for their carbon footprint. The latter means that every metric ton of biofuel is bunkered in addition to any legal mandate and carrier’s set fuel purchase orders.

Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker: “Together with MSC, we are offering our customers a convenient and clean solution using the latest generation of marine biofuel to help them achieve a real additional reduction in their emissions. We are doing this because we firmly believe it is the right thing to do and are therefore paying for biofuel purchases in advance. One thing is certain: the more customers demand climate neutrality throughout supply chains, the faster we achieve clean container ocean freight.”

Caroline Becquart, Senior Vice President of MSC: “Decarbonizing ocean freight cannot be achieved by a single player and requires collaboration between shipping and logistics companies and their customers. MSC Biofuel Solution is our first certified carbon insetting program that reduces emissions in our customers’ supply chains, accelerating the energy transition by creating demand for net-zero-carbon shipping and delivering direct CO2 savings. We’re delighted to partner with DB Schenker, with whom we share similar climate ambitions along our collective journey to net zero.”

Biofuel can be used for regular ocean freight operations without adjusting a ship’s infrastructure or supply chain, making it a particularly convenient solution. MSC Biofuel Solution is designed to be a win-win approach to move from ambition to action. MSC bunkers sustainable biofuel, and clients benefit from the CO2 savings, passing them on throughout the shipping value chain. This differentiates the program from carbon offsetting initiatives that focus on future emission reductions outside the shipping industry.

Biofuel is eminently well-regarded as a decarbonization transition fuel due to its high quality (according to EU RED II Annex IX, Part A+B) and the principle of additionality. The latter means that every metric ton of biofuel is produced and bunkered “in addition” to the baseline and therefore is an additional reduction in emissions in the overall carbon footprint and an actual avoidance of fossil fuels.

The entire chain of custody for the carbon insetting process is independently verified, with the carbon savings certified by external certification organizations attesting to the avoided emissions from the carbon footprint of freight transport. The bunker supplier also issues proof of sustainability for the biofuel.

Second-generation biofuel, also known as advanced biofuel, ensures at least 80% reduction in CO2e emissions (well-to-wake). For DB Schenker’s ocean freight, it is also guaranteed palm oil free, including no palm oil waste and no indirect land use change (ILUC).

The fuel needed for a 100% reduction in container transport is ensured by over-allocation, which also offsets the emissions generated when the fuel is produced and transported. This allows DB Schenker to achieve net-zero emissions well-to-wake and avoid fossil fuels in ocean freight.

 

 

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.