Extensions to Ship Charters on North Sea Routes

P&O Ferries has confirmed its long term commitment to its North Sea routes by extending the charter agreement with Bore Ltd on the MS Norsky and MS Norstream, boosting the flow of trade between Belgium and the UK, and maintaining its presence on the Zeebrugge-Teesport and Zeebrugge-Tilbury routes for the long term.

The three-year extension to the charter agreement ensures that freight customers will be able to rely on regular P&O Ferries’ services to key routes across the North Sea. The MS Norsky and MS Norstream play a vital role in linking customers to P&O Ferries’ Zeebrugge hub, unlocking access to freight destinations across Europe.

As well as extending charter agreements on the MS Norsky and MS Norstream, P&O Ferries has reinforced its commitment to the Zeebrugge-Teesport route through a separate extension of the MS Finnpulp charter agreement with Finnlines. The MS Finnpulp will continue serving the route on two midweek sailings a week, giving customers more options on the key trading routes between the UK and Belgium.

The extension of key charter agreements ensures the continuation of P&O Ferries’ 30-year presence at Teesport where P&O Ferries manages a specialised terminal and berth, providing an exceptional service to our customers at the port.

Ship Charters

Peter Hebblethwaite, Chief Executive of P&O Ferries, said: “Our continued cooperation with Bore Ltd and Finnlines is in response to the importance of our North Sea routes to our customers, who are playing a key role in ensuring smooth trade between Europe and the UK.

“We’re delighted to be reinforcing our presence on our North Sea routes and ensuring our customers continue to receive great service and consistent sailings between Zeebrugge and our UK ports in the years ahead.”

P&O is a leading pan-European ferry and logistics group at the heart of Europe’s economy and a part of DP World, the leading provider of smart logistics solutions and enabler of the flow of trade across the globe. P&O Ferries is a major provider of freight transport and passenger travel services, sailing on eight major routes between Britain, France, Northern Ireland, the Republic of Ireland, Holland and Belgium. Working closely with P&O Ferries, its logistics business P&O Ferrymasters operates integrated road and rail links to countries across the continent including Italy, Poland, Germany, Spain and Romania, and facilitates the onward movement of goods to Europe from Asian countries via the Silk Road.

Extensions to Ship Charters on North Sea Routes

P&O Ferries has confirmed its long term commitment to its North Sea routes by extending the charter agreement with Bore Ltd on the MS Norsky and MS Norstream, boosting the flow of trade between Belgium and the UK, and maintaining its presence on the Zeebrugge-Teesport and Zeebrugge-Tilbury routes for the long term.

The three-year extension to the charter agreement ensures that freight customers will be able to rely on regular P&O Ferries’ services to key routes across the North Sea. The MS Norsky and MS Norstream play a vital role in linking customers to P&O Ferries’ Zeebrugge hub, unlocking access to freight destinations across Europe.

As well as extending charter agreements on the MS Norsky and MS Norstream, P&O Ferries has reinforced its commitment to the Zeebrugge-Teesport route through a separate extension of the MS Finnpulp charter agreement with Finnlines. The MS Finnpulp will continue serving the route on two midweek sailings a week, giving customers more options on the key trading routes between the UK and Belgium.

The extension of key charter agreements ensures the continuation of P&O Ferries’ 30-year presence at Teesport where P&O Ferries manages a specialised terminal and berth, providing an exceptional service to our customers at the port.

Ship Charters

Peter Hebblethwaite, Chief Executive of P&O Ferries, said: “Our continued cooperation with Bore Ltd and Finnlines is in response to the importance of our North Sea routes to our customers, who are playing a key role in ensuring smooth trade between Europe and the UK.

“We’re delighted to be reinforcing our presence on our North Sea routes and ensuring our customers continue to receive great service and consistent sailings between Zeebrugge and our UK ports in the years ahead.”

P&O is a leading pan-European ferry and logistics group at the heart of Europe’s economy and a part of DP World, the leading provider of smart logistics solutions and enabler of the flow of trade across the globe. P&O Ferries is a major provider of freight transport and passenger travel services, sailing on eight major routes between Britain, France, Northern Ireland, the Republic of Ireland, Holland and Belgium. Working closely with P&O Ferries, its logistics business P&O Ferrymasters operates integrated road and rail links to countries across the continent including Italy, Poland, Germany, Spain and Romania, and facilitates the onward movement of goods to Europe from Asian countries via the Silk Road.

Körber and Hai Robotics Enter Strategic Partnership

Körber, an international technology group, is entering into a strategic partnership with Hai Robotics (“Hai”)— a leading provider of intelligent automated warehouse solution. The partnership allows Körber to offer Hai Robotics’ products as part of its solutions globally, particularly Hai’s industry-leading autonomous case-handling robots (ACR).

Since 2016, Körber has remained active in establishing strategic partnerships for the integration of mobile robotic solutions. With Hai Robotics’ ACR systems, operators can automate their warehouses within very short lead times. Warehouse operation efficiency will also increase by three to four times, and storage density by 80% to 400% respectively. The Körber portfolio consists of a mix between its own products and that from third party suppliers. This technology-agnostic approach allows supply chain experts to implement optimal and individualized solutions for their customers.

“As one of the leading integrators of automated intralogistics solutions, the Körber Supply Chain Business Area is always searching for new and innovative partners to ensure that customers are getting the best solutions”, said Michiel Veenman, Vice President of Körber Fulfilment Solutions. “We believe the solutions from Hai Robotics are sufficiently different from some of the other offerings in the market, thus making it a good addition to our portfolio.”

“From increasing costs to scarce labor, alongside intense developments in mobile robotic solutions, logistic operators are constantly under the pressure to meet stakeholder demands,” said Kane Luo, Vice President of International Business Center at Hai Robotics. “Our continued dedication to flexible automation has already provided clients with the efficiency required to fuel warehouse activity, and we are excited to continue such through our partnership with Körber. Through this partnership, both Hai’s and Körbers’ position as industry pioneers will be further strengthened.”

Hai Robotics, a leading global provider of Autonomous Case-handling Robot (ACR) systems, is committed to providing flexible, intelligent, and efficient warehouse automation solutions through robotics technology and AI algorithms. The HaiPick solution, independently developed in 2015, is the world’s first ever ACR solution. Hai Robotics is a global enterprise that has more than 1,000 projects worldwide and serves customers from more than 30 countries and regions. We have offices to cover the United States, Europe, Japan, South Korea, Southeast Asia and Australia. We strive to combine global experience with local expertise to provide our customers with tailored, quality solutions.

4th Stage at SPAR Warehouse in Austria

After an implementation period of more than two years, SPAR Österreichische Warenhandels AG and its project partner WITRON Logistik + Informatik GmbH from Parkstein (Bavaria, Germany), successfully put the fourth expansion stage of the Wels central warehouse (ZLW) into operation. By integrating state-of-the-art logistics technology, SPAR will be able to pick an additional 140,000 cases in a two-shift-operation in the future. The installation was carried out as a greenfield / brownfield combination in a 20,000 square meter new building, which was connected to the existing logistics areas during ongoing operations. SPAR and WITRON have enjoyed more than 25 years of successful cooperation, during which the ZLW project phases 1, 2, and 3 were put into operation in 1998, 2002, and 2015. In all extension and modernization phases, WITRON was responsible for the design, implementation, service, and system operation as a lifetime partner. The ZLW has a total footprint of 50,000 square meters and supplies 1,500 stores throughout Austria as well as the SPAR foreign subsidiaries with more than 18,000 different dry goods. The distribution centre is designed for a daily picking capacity of 340,000 pick units in two-shift operation and for picking up to 500,000 pick units on peak days in three-shift operation.

“For SPAR it is important to focus on service level, cost-efficiency, people, sustainability, and flexibility when using innovative logistics technology”, explains WITRON Project Manager Ulrich Schlosser. “When it comes to the service level, SPAR stores benefit from premium customer service enabled by holistic, cost-efficient processes within the internal and external supply chain. SPAR employees in the stores benefit from efficient product handling due to store-friendly picked roll containers and the staff in the distribution centre benefits from ergonomic workstations. Sustainability is reflected by significant CO2 savings due to densely packed load carriers, optimal truck utilization, and fewer truck tours. Furthermore, through space savings in construction and the use of state-of-the-art warehouse technology. In addition, flexibility and expandability also ensure future viability so that changing market requirements can be met quickly and flexibly”.

OPM as a central element

Central element of the “construction stage 4” expansion – just like in construction stage 3 – is the fully automated storage and picking system OPM (Order Picking Machinery). With the implementation of 16 additional COM machines (in total 24 COMs), it is now possible to pick up to 140,000 additional cases (in total 340,000 cases in two shifts) daily store-friendly onto roll containers in two shifts.

New additions also included an automated tray warehouse with 32 stacker cranes (in total 48) and 293,000 tray storage locations (in total 450,000) as well as a pallet high bay warehouse with 8 stacker cranes (in total 24) and 31,200 pallet storage locations (in total 73,000), 7 de-palletizers (in total 10), and 3 stretch-wrappers (in total 5). An automatic empties buffer with 4 stacker cranes for up to 8,600 roll containers has also been added. This ensures that the logistics loop of the ZLW is always provided with the optimal number of roll containers.

Holistic modification concept is a decisive factor

“However, not only the technical concept was important for the project success”, according to WITRON Project Manager Ulrich Schlosser. “Equally important for a combined greenfield / brownfield project is also a holistic change concept – meaning how the integration takes place in terms of timing and organization. In the process, the most important question has to be clearly addressed: How will the project be implemented throughout the entire project phase – and how will the ongoing operation or delivery to stores and consumers take place at the same time, without any interruptions”, explains Ulrich Schlosser. “Due to the modular design of our end-to-end solutions and their physical compactness, we can develop highly flexible implementation and future concepts for our customers already in the design phase. These can be integrated both directly into an already existing system considering increasing volumes, growing product ranges, additional pick stations, or changing business and material flow processes, or, as in the case of SPAR, they can be integrated into the material flow of an existing system via a new building.”

500,000 pick units for 1,500 stores

The ZLW has a total footprint of 50,000 square meters and supplies 1,500 stores throughout Austria as well as the SPAR foreign subsidiaries with more than 18,000 different dry goods. The distribution centre is designed for a daily picking capacity of 500,000 pick units. The WITRON solutions OPM and DPS are used for storage and picking. A WITRON OnSite team is responsible for service, maintenance, and system operation in shift operation and thus enables a permanently high availability of all logistics areas, material flows, mechanical, control, and IT components.

“Mutual trust is the foundation of more than 25 years of partnership between SPAR and WITRON. SPAR has often been a pilot customer and has repeatedly supported us with the integration of new technologies and services in a sustainable way. SPAR and WITRON – that fits: the corporate culture, the technology, and particularly the people”, says WITRON Project Manager Ulrich Schlosser.

4th Stage at SPAR Warehouse in Austria

After an implementation period of more than two years, SPAR Österreichische Warenhandels AG and its project partner WITRON Logistik + Informatik GmbH from Parkstein (Bavaria, Germany), successfully put the fourth expansion stage of the Wels central warehouse (ZLW) into operation. By integrating state-of-the-art logistics technology, SPAR will be able to pick an additional 140,000 cases in a two-shift-operation in the future. The installation was carried out as a greenfield / brownfield combination in a 20,000 square meter new building, which was connected to the existing logistics areas during ongoing operations. SPAR and WITRON have enjoyed more than 25 years of successful cooperation, during which the ZLW project phases 1, 2, and 3 were put into operation in 1998, 2002, and 2015. In all extension and modernization phases, WITRON was responsible for the design, implementation, service, and system operation as a lifetime partner. The ZLW has a total footprint of 50,000 square meters and supplies 1,500 stores throughout Austria as well as the SPAR foreign subsidiaries with more than 18,000 different dry goods. The distribution centre is designed for a daily picking capacity of 340,000 pick units in two-shift operation and for picking up to 500,000 pick units on peak days in three-shift operation.

“For SPAR it is important to focus on service level, cost-efficiency, people, sustainability, and flexibility when using innovative logistics technology”, explains WITRON Project Manager Ulrich Schlosser. “When it comes to the service level, SPAR stores benefit from premium customer service enabled by holistic, cost-efficient processes within the internal and external supply chain. SPAR employees in the stores benefit from efficient product handling due to store-friendly picked roll containers and the staff in the distribution centre benefits from ergonomic workstations. Sustainability is reflected by significant CO2 savings due to densely packed load carriers, optimal truck utilization, and fewer truck tours. Furthermore, through space savings in construction and the use of state-of-the-art warehouse technology. In addition, flexibility and expandability also ensure future viability so that changing market requirements can be met quickly and flexibly”.

OPM as a central element

Central element of the “construction stage 4” expansion – just like in construction stage 3 – is the fully automated storage and picking system OPM (Order Picking Machinery). With the implementation of 16 additional COM machines (in total 24 COMs), it is now possible to pick up to 140,000 additional cases (in total 340,000 cases in two shifts) daily store-friendly onto roll containers in two shifts.

New additions also included an automated tray warehouse with 32 stacker cranes (in total 48) and 293,000 tray storage locations (in total 450,000) as well as a pallet high bay warehouse with 8 stacker cranes (in total 24) and 31,200 pallet storage locations (in total 73,000), 7 de-palletizers (in total 10), and 3 stretch-wrappers (in total 5). An automatic empties buffer with 4 stacker cranes for up to 8,600 roll containers has also been added. This ensures that the logistics loop of the ZLW is always provided with the optimal number of roll containers.

Holistic modification concept is a decisive factor

“However, not only the technical concept was important for the project success”, according to WITRON Project Manager Ulrich Schlosser. “Equally important for a combined greenfield / brownfield project is also a holistic change concept – meaning how the integration takes place in terms of timing and organization. In the process, the most important question has to be clearly addressed: How will the project be implemented throughout the entire project phase – and how will the ongoing operation or delivery to stores and consumers take place at the same time, without any interruptions”, explains Ulrich Schlosser. “Due to the modular design of our end-to-end solutions and their physical compactness, we can develop highly flexible implementation and future concepts for our customers already in the design phase. These can be integrated both directly into an already existing system considering increasing volumes, growing product ranges, additional pick stations, or changing business and material flow processes, or, as in the case of SPAR, they can be integrated into the material flow of an existing system via a new building.”

500,000 pick units for 1,500 stores

The ZLW has a total footprint of 50,000 square meters and supplies 1,500 stores throughout Austria as well as the SPAR foreign subsidiaries with more than 18,000 different dry goods. The distribution centre is designed for a daily picking capacity of 500,000 pick units. The WITRON solutions OPM and DPS are used for storage and picking. A WITRON OnSite team is responsible for service, maintenance, and system operation in shift operation and thus enables a permanently high availability of all logistics areas, material flows, mechanical, control, and IT components.

“Mutual trust is the foundation of more than 25 years of partnership between SPAR and WITRON. SPAR has often been a pilot customer and has repeatedly supported us with the integration of new technologies and services in a sustainable way. SPAR and WITRON – that fits: the corporate culture, the technology, and particularly the people”, says WITRON Project Manager Ulrich Schlosser.

Accident-Free Trucking by Autonomous Driving

Inceptio Technology, a Chinese developer of autonomous driving technologies for heavy-duty trucks, announced that the Inceptio Autonomous Driving System has powered more than 40 million kilometers of accident-free trucking on China’s highways. This latest milestone underlines the safety and reliability of Inceptio’s full-stack autonomous driving solution, as well as its accelerating commercial uptake.

Inceptio’s L3 autonomous trucks have been in commercial operation since late 2021. Working closely with two of China’s top OEMs, Dongfeng Commercial Vehicle and Sinotruk, Inceptio has shipped hundreds of mass-produced heavy-duty trucks designed from the ground up for full integration with the Inceptio Autonomous Driving System. Major customers including Budweiser, Nestlé, JD Logistics, and Deppon Express have deployed Inceptio trucks across a nationwide line-haul logistics network in China.

Inceptio’s solution brings significant benefits to every segment of the freight hauling ecosystem. The Company’s focus on mass production ensures that L3 autonomous trucks are sufficiently reliable for OEMs to produce and highly affordable for fleet operators to procure and operate, while its advanced technical features significantly increase driver safety and enable end-customers to receive goods at lower shipping costs.

“We are incredibly proud of the stellar performance record that Inceptio trucks have amassed over the past two years.” said Julian Ma, founder and CEO of Inceptio Technology. “Across 40 million kilometers of commercial operations, our Inceptio Autonomous Driving System has achieved a highly satisfactory on-time arrival rate for our customers with a perfect safety record. The Inceptio R&D team and the autonomous driving system itself are learning a tremendous amount from our fast-growing trove of operational data, and these insights will be invaluable as we speed up commercialization of our L3 solution and continue to hone our driverless solution. We look forward to sharing these achievements with industry partners as we explore opportunities to deploy our cutting-edge technology globally.”

Autonomous Driving System

Inceptio has successfully mass-produced a fully integrated solution to power the next generation of autonomous heavy-duty trucks. The Company’s focus on pre-loading its systems during the production process ensures significantly greater safety, reliability, durability, and regulatory compliance compared to an aftermarket approach.

With ‘safety first’ as its top design principle, Inceptio has collaborated with more than 50 industry partners to solve the most difficult challenges unique to the automation of heavy-duty trucks, including much greater size, weight, reaction distances, response times, and variations in vehicle parameters. Inceptio’s innovation achievements include:

World-leading algorithms
 Perception – Ultra long-range 3D sensing technology holds the industry record with an error rate of less than 5% at a distance of 1,000 meters
 Planning & Control – The core algorithm sets a performance benchmark for the industry with an average lateral control error within 5.5 cm
 Fuel efficiency – Algorithms optimize fuel economy at every level, resulting in 3-7% fuel savings over the most fuel-efficient human drivers

Full-stack software and hardware development
 Fully self-developed autonomous driving software
 Fully self-developed Autonomous Driving Control Unit with 262 KDMIPS + 256 TOPS of computing power
 The industry’s first fully redundant drive-by-wire chassis, including redundant steering, braking, and power supply systems
 Automotive-grade autonomous driving hardware kit offering triple-redundant sensor configuration and fully redundant computing unit
 An advanced human-machine interaction system with auditory, visual, and tactile feedback for human operators

Inceptio Technology is China’s leading developer of autonomous driving technologies for heavy-duty trucks. Its flagship technology is the Inceptio Autonomous Driving System, a proprietary full-stack solution. Inceptio partnered with leading OEMs to roll out the industry’s first mass-produced L3 autonomous trucks in late 2021. These trucks are operated by customers including Budweiser, Nestlé, JD Logistics, and Deppon Express across a nationwide line-haul logistics network in China. Inceptio is at the cutting edge of developing fully driverless trucks, and in 2022 became the first company to receive a public road-testing permit for driverless autonomous heavy-duty trucks in China.

Accident-Free Trucking by Autonomous Driving

Inceptio Technology, a Chinese developer of autonomous driving technologies for heavy-duty trucks, announced that the Inceptio Autonomous Driving System has powered more than 40 million kilometers of accident-free trucking on China’s highways. This latest milestone underlines the safety and reliability of Inceptio’s full-stack autonomous driving solution, as well as its accelerating commercial uptake.

Inceptio’s L3 autonomous trucks have been in commercial operation since late 2021. Working closely with two of China’s top OEMs, Dongfeng Commercial Vehicle and Sinotruk, Inceptio has shipped hundreds of mass-produced heavy-duty trucks designed from the ground up for full integration with the Inceptio Autonomous Driving System. Major customers including Budweiser, Nestlé, JD Logistics, and Deppon Express have deployed Inceptio trucks across a nationwide line-haul logistics network in China.

Inceptio’s solution brings significant benefits to every segment of the freight hauling ecosystem. The Company’s focus on mass production ensures that L3 autonomous trucks are sufficiently reliable for OEMs to produce and highly affordable for fleet operators to procure and operate, while its advanced technical features significantly increase driver safety and enable end-customers to receive goods at lower shipping costs.

“We are incredibly proud of the stellar performance record that Inceptio trucks have amassed over the past two years.” said Julian Ma, founder and CEO of Inceptio Technology. “Across 40 million kilometers of commercial operations, our Inceptio Autonomous Driving System has achieved a highly satisfactory on-time arrival rate for our customers with a perfect safety record. The Inceptio R&D team and the autonomous driving system itself are learning a tremendous amount from our fast-growing trove of operational data, and these insights will be invaluable as we speed up commercialization of our L3 solution and continue to hone our driverless solution. We look forward to sharing these achievements with industry partners as we explore opportunities to deploy our cutting-edge technology globally.”

Autonomous Driving System

Inceptio has successfully mass-produced a fully integrated solution to power the next generation of autonomous heavy-duty trucks. The Company’s focus on pre-loading its systems during the production process ensures significantly greater safety, reliability, durability, and regulatory compliance compared to an aftermarket approach.

With ‘safety first’ as its top design principle, Inceptio has collaborated with more than 50 industry partners to solve the most difficult challenges unique to the automation of heavy-duty trucks, including much greater size, weight, reaction distances, response times, and variations in vehicle parameters. Inceptio’s innovation achievements include:

World-leading algorithms
 Perception – Ultra long-range 3D sensing technology holds the industry record with an error rate of less than 5% at a distance of 1,000 meters
 Planning & Control – The core algorithm sets a performance benchmark for the industry with an average lateral control error within 5.5 cm
 Fuel efficiency – Algorithms optimize fuel economy at every level, resulting in 3-7% fuel savings over the most fuel-efficient human drivers

Full-stack software and hardware development
 Fully self-developed autonomous driving software
 Fully self-developed Autonomous Driving Control Unit with 262 KDMIPS + 256 TOPS of computing power
 The industry’s first fully redundant drive-by-wire chassis, including redundant steering, braking, and power supply systems
 Automotive-grade autonomous driving hardware kit offering triple-redundant sensor configuration and fully redundant computing unit
 An advanced human-machine interaction system with auditory, visual, and tactile feedback for human operators

Inceptio Technology is China’s leading developer of autonomous driving technologies for heavy-duty trucks. Its flagship technology is the Inceptio Autonomous Driving System, a proprietary full-stack solution. Inceptio partnered with leading OEMs to roll out the industry’s first mass-produced L3 autonomous trucks in late 2021. These trucks are operated by customers including Budweiser, Nestlé, JD Logistics, and Deppon Express across a nationwide line-haul logistics network in China. Inceptio is at the cutting edge of developing fully driverless trucks, and in 2022 became the first company to receive a public road-testing permit for driverless autonomous heavy-duty trucks in China.

Concerns over Human Rights in Supply Chains

More than two-thirds of chief executives at British companies are concerned about human rights issues in their supply chains, research has suggested. A survey, commissioned by procurement consultancy Proxima, surveyed 1,000 UK CEOs about their approach to supply chain issues.

It found that 67% are concerned with potential issues around human rights and labour rights. Concern is highest in the construction sector (77%), leisure and hospitality (77%), retail (72%), and the food and beverage manufacturing sector (70%), the survey found.

It comes as companies come under increasing scrutiny for emissions and human rights issues across their operations. According to the survey, almost half of UK bosses – 49% – said they expect to spend more time focussing on supply chain issues in the next 12 months.
It found that 42% are considering “onshoring” – moving their entire supply chain to their home country – as a way to prevent disruption and improve transparency.

Meanwhile, 36% said they are looking at “nearshoring” – moving supply chains to countries closer to the UK.

Simon Geale, executive vice president and chief procurement officer at Proxima, said: “Addressing human rights issues across the supply chain is a huge challenge for businesses and it is clearly high up on the agenda for CEOs. We’ve seen a number of businesses fall victim to human rights issues and, as we see increased scrutiny from customers and regulators, supply chain transparency is going to become increasingly critical. This is the emerging priority for CEOs at a time when business leaders are spending more time than ever tackling supply chain issues.”

The UK private sector has seen movement to tackle supply chain issues in recent years through initiatives like the Pharmaceutical Supply Chain Initiative, the Waste and Resources Action Programme, Scope 3 Peer Group, AIM-Progress and the Sustainable Procurement Pledge.
Unilever has been using satellite tracking to monitor deforestation and behavioural patterns around key factories while IMB has developed a supply chain solution blockchain technology, used by companies like Vodafone.

James Butcher, CEO of Supply Pilot, a tech platform that allows companies to better engage with their suppliers, said: “The supply chain disruption continues and this is why so many CEOs are focused on their supply chains. But this unfortunately is at the expense of progress on sustainability as reflected in the poor strategies on supply chain decarbonisation. I believe this is because of the internal narrative reflecting it as an either/or decision on where to focus, whereas a good supplier engagement programme focused on more sustainable and responsible procurement can address both the E and the S of ESG but also delivers more resilient supply chains.”

Neil Robson (pictured), partner at Katten UK, added:

“The fact that 67% of polled UK CEOs are concerned about human rights issues in their supply chains is testament to the fact that ESG is now well-and-truly coming of age. The “S” – the social element of the Environmental, Social and Governance framework used by firms and investors to assess an organization’s business practices – has long taken second or third place to environmental sustainability issues and good governance. However, given ESG’s evolution from ethical investing and ‘corporate social responsibility’, the social element has to remain in focus.

“Concerns with potential issues around human rights/ labour rights in the supply chain seem to have been growing in recent years, following requirements for UK businesses to adhere to the UK Modern Slavery Act, which has been in force since October 2015. As a world-leading piece of legislation, it sets out a range of measures on how modern slavery and human trafficking must be dealt with in the UK and focuses (at section 54) on ‘Transparency in Supply Chains‘. As the survey notes, addressing human rights issues across the supply chain is a huge challenge, but nonetheless supply chain transparency is a potential area of risk that is becoming increasingly critical – especially where those supply chains are overseas, opaque and unclear. Businesses that hold themselves out as ESG-compliant must address their sustainability and good governance, but they must also understand their impact on their entire supply chain and do their best to ensure they are doing the right thing for all concerned.”

Concerns over Human Rights in Supply Chains

More than two-thirds of chief executives at British companies are concerned about human rights issues in their supply chains, research has suggested. A survey, commissioned by procurement consultancy Proxima, surveyed 1,000 UK CEOs about their approach to supply chain issues.

It found that 67% are concerned with potential issues around human rights and labour rights. Concern is highest in the construction sector (77%), leisure and hospitality (77%), retail (72%), and the food and beverage manufacturing sector (70%), the survey found.

It comes as companies come under increasing scrutiny for emissions and human rights issues across their operations. According to the survey, almost half of UK bosses – 49% – said they expect to spend more time focussing on supply chain issues in the next 12 months.
It found that 42% are considering “onshoring” – moving their entire supply chain to their home country – as a way to prevent disruption and improve transparency.

Meanwhile, 36% said they are looking at “nearshoring” – moving supply chains to countries closer to the UK.

Simon Geale, executive vice president and chief procurement officer at Proxima, said: “Addressing human rights issues across the supply chain is a huge challenge for businesses and it is clearly high up on the agenda for CEOs. We’ve seen a number of businesses fall victim to human rights issues and, as we see increased scrutiny from customers and regulators, supply chain transparency is going to become increasingly critical. This is the emerging priority for CEOs at a time when business leaders are spending more time than ever tackling supply chain issues.”

The UK private sector has seen movement to tackle supply chain issues in recent years through initiatives like the Pharmaceutical Supply Chain Initiative, the Waste and Resources Action Programme, Scope 3 Peer Group, AIM-Progress and the Sustainable Procurement Pledge.
Unilever has been using satellite tracking to monitor deforestation and behavioural patterns around key factories while IMB has developed a supply chain solution blockchain technology, used by companies like Vodafone.

James Butcher, CEO of Supply Pilot, a tech platform that allows companies to better engage with their suppliers, said: “The supply chain disruption continues and this is why so many CEOs are focused on their supply chains. But this unfortunately is at the expense of progress on sustainability as reflected in the poor strategies on supply chain decarbonisation. I believe this is because of the internal narrative reflecting it as an either/or decision on where to focus, whereas a good supplier engagement programme focused on more sustainable and responsible procurement can address both the E and the S of ESG but also delivers more resilient supply chains.”

Neil Robson (pictured), partner at Katten UK, added:

“The fact that 67% of polled UK CEOs are concerned about human rights issues in their supply chains is testament to the fact that ESG is now well-and-truly coming of age. The “S” – the social element of the Environmental, Social and Governance framework used by firms and investors to assess an organization’s business practices – has long taken second or third place to environmental sustainability issues and good governance. However, given ESG’s evolution from ethical investing and ‘corporate social responsibility’, the social element has to remain in focus.

“Concerns with potential issues around human rights/ labour rights in the supply chain seem to have been growing in recent years, following requirements for UK businesses to adhere to the UK Modern Slavery Act, which has been in force since October 2015. As a world-leading piece of legislation, it sets out a range of measures on how modern slavery and human trafficking must be dealt with in the UK and focuses (at section 54) on ‘Transparency in Supply Chains‘. As the survey notes, addressing human rights issues across the supply chain is a huge challenge, but nonetheless supply chain transparency is a potential area of risk that is becoming increasingly critical – especially where those supply chains are overseas, opaque and unclear. Businesses that hold themselves out as ESG-compliant must address their sustainability and good governance, but they must also understand their impact on their entire supply chain and do their best to ensure they are doing the right thing for all concerned.”

New Shareholder of Duisburg Gateway Terminal

PSA International Pte Ltd (PSA), headquartered in Singapore, has signed agreements to acquire a 22 percent minority stake in Duisburg Gateway Terminal GmbH (DGT). The transaction is subject to the approval of Germany’s competition and supervisory authorities. Upon completion of transaction, PSA will join Hupac, HTS and Duisport as shareholders of DGT.

Located in the Port of Duisburg, DGT will be the first 100% climate-neutral inland container terminal located in the European hinterlands.

“We are pleased to have gained an important strategic partner for the DGT company in PSA, which will contribute significantly to the success of the Duisburg Gateway Terminal with its various business segments in Europe, Asia and worldwide. This network expansion strengthens both the competitive diversity and the further diversification of the Port of Duisburg. The topic of supply chain diversification has an increasingly important meaning,” says Duisport CEO Markus Bangen.

Tan Chong Meng, Group CEO of PSA, says, “We are excited to become a partner in Duisburg Gateway Terminal, alongside its existing shareholders Duisport, HUPAC and HTS. As part of Europe’s largest and most sustainable inland port, DGT will be a key gateway in providing green logistics services to Germany’s dense industrial hinterland. Leveraging PSA’s global ports and supply chain network as well as its strong presence in continental Europe, PSA aims to strengthen the DGT partnership and support Germany’s green energy transition in line with our strategic focus towards enabling smoother, more resilient and sustainable trade.”

The construction of the trimodal DGT is on schedule and is considered a model project for the future of logistics. With an area of 235,000 square meters, DGT will be the largest container terminal in the European hinterland when completed. The first construction phase is scheduled for completion in the first quarter of 2024.

PSA International (PSA) is a leading global port operator and trusted supply chain partner to cargo stakeholders. PSA’s ports and cargo solutions portfolio comprises over 60 deep-sea, rail and inland terminals, across 160 locations in 42 countries – including two flagship port operations in Singapore and Belgium, as well as affiliated businesses in supply chain management, logistics, marine and digital services. Drawing on the deep expertise and experience from a diverse global team, PSA collaborates with its customers and partners to develop world-class port ecosystems, deliver innovative cargo solutions and co-create an Internet of Logistics to accelerate the shift towards sustainable trade.

Duisburger Hafen AG is the ownership and management company of the Port of Duisburg, the largest inland port in the world. The Duisport Group offers full-service packages for the port and logistics location in the areas of infra- and supra-structure including settlement management. In addition, the subsidiaries provide logistics services such as the establishment and optimization of transport and logistics

Subscribe

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