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Month: April 2025

New Port Equipment Reduces Fuel Usage

Posted on by David Priestman

Porto Itapoá in Brazil avoided the consumption of over 1.18 million litres of fuel in 2024, equivalent to more than 4,000 tons of greenhouse gases that were not released into the atmosphere. This achievement was made possible by investments of over R$ 160 million that the Terminal made in expanding and modernizing its fleet of equipment.

In 2023, Porto Itapoá invested in the acquisition of 10 hybrid RTGs, which began operating in 2024. These machines consume three times less diesel than conventional models, resulting in savings of 890,000 litres of fuel. Sergni Pessoa Rosa Jr., Director of Operations, Technology, and Environment at Porto Itapoá, emphasized the importance of this change: “The new RTGs are also remotely operated, providing greater comfort and ergonomics for the operator. We are the first Terminal in South America to have this technology,” he stated.

In 2024, the terminal expanded its sustainable fleet with the purchase of 20 electric Terminal Tractors. Since the start of their operation in August 2024, these vehicles have prevented the consumption of 290,000 litres of diesel. Since they do not use fossil fuels, the electric Terminal Tractors represent a significant advance in reducing the terminal’s carbon footprint. “Today, we have the largest fleet of electric Terminal Tractors in Brazil,” highlights Rosa Jr.

Savings in Lubricating Oil and Filters

In addition to reducing diesel consumption, Porto Itapoá also implemented practices that extended the lifespan of lubricating oils and optimized preventive maintenance. These actions, combined with fleet modernization, resulted in savings of 15,000 liters of lubricating oil and 500 filters. “Extending the life of lubricants and optimizing maintenance are examples of how small changes can have a big impact. These practices not only reduce costs but also minimize waste generation,” explains Sergni Pessoa Rosa Jr.

The used oil is sent to a company that recycles the material, which is then reintroduced into the market for other purposes. “Even with proper disposal, it is important to reduce overall consumption, making the supply chain more sustainable,” the director notes.

Environmental Leadership

In January, Porto Itapoá reaffirmed its commitment to sustainability and innovation in the port sector. At an event held at B3 in São Paulo, the Terminal’s CEO, Ricardo Arten, signed the Pact for Sustainability, a pioneering initiative by the Ministry of Ports and Airports (MPor), led by Minister Sílvio Costa Filho. Porto Itapoá is one of the leading examples of sustainability among private ports in the country.

The Pact is part of the launch of the new Sustainability Policy for the ports, airports, and waterways sectors. The initiative establishes strict criteria for awarding recognition seals — Bronze, Silver, Gold, and Diamond — to companies that adopt practices based on ESG pillars (environmental, social, and governance). Requirements include reducing greenhouse gas emissions, developing social and environmental initiatives, and aligning with global goals of the 2030 Agenda.

Porto Itapoá is already widely recognized as a benchmark for sustainability in the Brazilian port sector, with a score of 98.33 in the Environmental Development Index (IDA) by National Waterway Transport Agency (ANTAQ). This performance earned the Terminal the Via Viva Award as the most sustainable private port in the country. It also won, for the third consecutive year, the Gold Seal from the GHG Protocol for its commitment to transparency, accuracy, and reducing greenhouse gas emissions. Additionally, it received the international I-REC certification, confirming that 100% of the electricity used in 2023 came from renewable sources.

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USA Tariffs Make Frontline Workers Angry

Posted on by David Priestman

Changes in U.S. trade policy have contributed to a growing sentiment of unease and insecurity among frontline workers — those engaged in shift work or non-salaried employees, who typically have to be present in a specific place at an assigned time to do their job — roles which are often sensitive to market fluctuations and price increases.

More than half of workers (52%) believe they are at risk of being laid off and nearly three-quarters (74%) feel tariffs will impact their future earnings, while almost 7 in 10 expect an impact to their current earnings (68%). What’s more, 77% of frontline workers agree that tariffs hurt ‘Main Street’ more than their Wall Street counterparts.

These findings come from a new survey from UKG, a leading provider of HR, payroll, and workforce management solutions, which asked more than 5,000 frontline workers in what is believed to be the largest survey to date about sentiment around tariffs.

Impact on jobs

Frontline workers said that the 90-day pause has created more uncertainty because they don’t know what the future will bring (75%). Many wish they could revert to the old tariff structure (73%), as U.S. frontline workers admit to feeling nervous (65%), stressed (56%), and angry (56%) about the potential impact tariffs will have on their jobs. On top of job security and earning power fears, two-thirds of frontline employees believe pending tariffs will create unpredictability in scheduling and overtime (64%) and limit their future job prospects (66%).

Changing behaviours at work and at home

More than half of frontline workers (51%) have already experienced noticeable changes at their jobs because of tariffs, and these changes are having a trickledown effect on their behaviors at work and home. General uncertainty has caused 72% of frontline workers to change workplace behaviour in some way, including working harder to prove their value (37%), voluntarily taking on more hours in case future hours are reduced (25%), and adding a new skill or certification for job security (23%).

At home, 83% of workers are changing personal habits in some way, including saving more money (48%), paying more attention to news and economic forecasts (31%), and putting off large purchases (26%). One in 10 frontline employees (13%) have even admitted to delaying their retirement plans, and 1 in 4 are actively looking for additional income streams (24%).

Generational gap

Gen Z workers are much more worried about the impact of tariffs on their futures than Baby Boomers and are changing behaviors at more than two times the rate. Two-thirds (63%) of Gen Z workers fear that tariffs will cost them their jobs and that they will be laid off. Only one in four (28%) Baby Boomers share this same fear. Gen Z workers say they’ve experienced more noticeable changes at their jobs than Baby Boomers (63% vs. 28%) and nearly half (47%) say they are working harder to prove their worth compared with only 15% of Baby Boomers. Tariff uncertainty and the potential job impacts also are changing Gen Z spending habits. Gen Zers (58%) said they’ve had to save more money by spending less or switching to lower-cost products (vs. 37% of boomers).

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DSV Completes Acquisition of Schenker

Posted on by David Priestman

DSV A/S has announced the successful completion of its acquisition of Schenker from Deutsche Bahn. This transformative event marks the largest transaction in DSV’s history, significantly enhancing its global network, expertise, and competitive edge across all three divisions.

With the acquisition, valued at approx. DKK 106.7 billion (approx. EUR 14.3 billion), DSV is doubling its size and establishing the foundation for future sustainable growth. The combined company will have a revenue of approximately DKK 310 billion (approx. EUR 41.6 billion) and a workforce of close to 160,000 employees across more than 90 countries.

Jens H. Lund, Group CEO, DSV said: “With the completion of the acquisition of Schenker, we have reached a milestone in the history of DSV. We have been looking forward to completing the transaction and I am excited to welcome our new colleagues to the DSV organisation. With this acquisition, we become a world-leading player in global transport and logistics, at a time when global supply chains are more in focus than ever before, and our customers need a reliable and agile global network of services and products. By combining the two companies we will create a unique flexible platform for long-term financial growth to the benefit of our customers, employees, shareholders and other stakeholders.”

Jochen Thewes, CEO, Schenker said: “We are happy to complete this important milestone, and we are looking forward to joining forces with DSV. The dialogue throughout the last months has been very positive and we are very excited about the prospects of the combined business. DSV and Schenker are a strong match with many similarities in business models and services, shared values and high operational standards, and we look forward to getting to work.”

Winning as one

The combination will strengthen DSV’s global network and competitiveness and provide access to new markets and talents at a crucial time for global trade and supply chains. Besides greater reach and better opportunities to create truly end-to-end solutions for our customers, the acquisition strengthens DSV’s platform for future growth and the development of a more sustainable, flexible and digitalised transport and logistics industry.

The combined company aims to use the strengthened market position to continue to grow through enhanced service offerings and economies of scale, achieving industry-leading margins. Now, the integration of Schenker will begin. DSV is committed to a smooth transition and will approach the integration with due respect and careful consideration for customers, employees and stakeholders. During the integration process, it is a key priority to avoid disruptions and retain a high service level for our customers.

Schenker will be included in the consolidated financial statements of DSV from 1 May 2025. Based on preliminary estimates, annual synergies are estimated in the level of DKK 9 billion at end of 2028.

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Multi-Million Savings Across Fleet Operations

Posted on by David Priestman

UK electricals retailer AO has achieved 16% annual cost savings and reduced road incidents across its 1,000+ fleet of commercial vehicles by implementing advanced AI and fleet management solutions from Samsara, provider of the Connected Operations® Platform.

AO has more than 1,000 commercial vehicles equipped with Samsara’s advanced telematics technology and AI dash cams, with visibility of the entire fleet provided through Samsara’s Connected Operations platform.

By making Samsara’s platform central to its fleet operation, AO has increased operational efficiency, saving time, reducing costs and making work better for its drivers:

• Driver time has been saved by replacing manual vehicle walkarounds carried out with paper and pen with intuitive digital walkarounds using a Driver App
• Proactive, AI-driven vehicle maintenance has delivered 31% cost savings annually and an 8% reduction in tyre spend, despite completing more miles
• Insurance premiums have reduced by 25% due to reduced accident rates — proven through Samsara’s analytics.

Shaun Carter, Regional Manager at AO, comments: “Samsara is central to our operations—saving us time, helping us keep costs down, and making life easier for our drivers. We’ve got a single source of truth to monitor driver performance, track our fleet of vehicles, and provide training to the drivers that need it most.”

The Samsara technology has had a particularly positive impact on driver performance and attitudes to safer driving. Through Samsara In-Cab Alerts and AI dash cams, drivers are warned about any risky behaviour in real time and data is used to provide targeted coaching to its drivers. The introduction of a Driver Safety Score has driven competition between the drivers to enhance their road performance — raising safety standards across the business.

Carter explains: “The safety score is now a hugely important KPI as it demonstrates the work we’ve done and encourages drivers to compete amongst each other — and by proving that score we receive a discount on insurance premiums too. It’s about much more than cost savings though. Safer drivers means fewer accidents, more reliable deliveries, and, ultimately, happier customers.”

Philip van der Wilt, SVP and GM EMEA at Samsara, comments: “Connecting physical operations can have a transformative impact, as AO is demonstrating through improved efficiency, vehicle performance and road safety. By empowering businesses with full visibility and management of their fleet, Samsara is playing a pivotal role in enhancing the driver experience and the service they deliver to customers.”

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National Supply Chain Day

Posted on by David Priestman

‘National Supply Chain Day’ is taking place in the USA today. Chris Coote, Head of Product at Dexory, comments on how technology, such as AI and robotics, is enhancing resilience across modern supply chains.

“National Supply Chain Day is time to recognise the transformative impact of technology across modern supply chains. Warehouses are more than just storage spaces – they’re strategic, tech-enabled hubs seamlessly connecting supply with demand. AI is revolutionising supply chain management, addressing challenges like visibility, inventory optimisation and operational efficiency. With real-time tracking and predictive analytics, businesses can make faster and more informed decisions, helping build resiliency and enabling companies to anticipate disruptions and respond proactively.

“Adding robotics into this mix means resiliency only grows. Robotic systems collect precise inventory data, which AI analyses to detect discrepancies, forecast trends, and optimise stock levels. By reducing time to insight to speed up decision making, reduces manual effort, minimises errors and improves productivity. Ultimately, supply chain technology isn’t just about streamlining operations – it’s fundamentally transforming how businesses connect products with people in our increasingly complex global supply chain.”

National Supply Chain Day is celebrated on April 29th every year to mark the binding importance of global logistics in the everyday lives of people. The goal is to bring stakeholders together to share recent developments in the field. Introduced in 2020 by a Georgia-based packaging outlet, it aims to raise awareness about the way logistics affects all of us, and how we can be better partners and benefactors of the global system.

In the last 30 years, the supply chain has evolved from being an amalgam of various sub-specialties to a distinctive and globally valued industry. Today, students can study in supply chain management and build a career in the field. The scattered links of the industry are finally coming together under an umbrella, intending to develop devoted talent from the start. The emergence of machine learning and artificial intelligence has also brought forward a tremendous change in the way operations unfold in the industry.

This day emphasizes the dependence on this industry. The central tagline of the observation is ‘Every link in the supply chain matters,’ which conveys the importance of multiple channels and workers at all levels of logistics who keep the goods moving. The word ‘link’ also signifies the underlying importance of our interconnected and interlinked world. A missing link can hamper the entire operation and jeopardize businesses across the world, which later impacts all of us.

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Logistics Companies Embracing AI

Posted on by David Priestman

Employees in logistics are among the top users of artificial intelligence, with almost all saying it has had a positive impact on their workplace. New research found that 62% of people who work in the industry, and who regularly handle information as part of their job, use AI today, and 97% of those say it’s been beneficial.

The Access Group surveyed employees in 12 industries and professions – and found that half of all employees use AI. While the logistics sector was behind the tech industry, where adoption is 74%, it was well ahead of not-for-profit, and health and social care sectors where it is 29% and 30% respectively. Employees in logistics cite reduced workloads and higher productivity as the top benefits of AI.

Top five benefits of AI in Supply Chain

• Reduces workload (62%)
• Gives employees time to focus on what matters most (37%)
• Employees are more productive (31%)
• Better team communication (30%)
• Better customer service (29%)

Generative AI tool, ChatGPT is the most popular application – used by 53% of respondents and 64% say it has reduced their stress levels. However, there were some concerns too, with 51% pointing to job replacement, and 46% to data security.

Jarrod Adam

Jarrod Adam (pictured), Head of Product for inventory software platform Unleashed said: “Small and medium-sized logistics firms have made great strides in moving towards digital technologies in recent years – but the adoption of AI is set to transform the industry, enabling firms to be more innovative, competitive and profitable. Many routine and repetitive tasks are now being automated using ERP and warehouse management software. AI is the next natural step for these firms, allowing them to save valuable resources in an industry that has been plagued by skills shortages and rising costs for years. AI can vastly improve operational efficiency by intelligently prioritising tasks for users and providing insights that result in better decisions. By removing a lot of the drudge work, firms also create modern working environments that are more attractive to current and existing employees.”

Marko Perisic, Chief Product and Engineering Officer at The Access Group, said that the adoption of AI in logistics was positive – but added that employees must be given the right tools and training. “AI has taken off in a way that few people could have imagined – but left unchecked it can lead to some employees using it irresponsibly. Logistics firms need a vendor who offers the highest data protection standards. Our new AI experience, Access Evo, encourages employees to innovate, while giving them peace of mind that all information is stored in a secure and private environment and not used in other open source AI systems. Approved AI tools like these, underpinned by clear and regularly-updated policies and training, can help everyone to deliver a better standard of service, and get ahead in their careers without compromising company data.”

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Live RFID Solutions Showcase

Posted on by David Priestman

Clustag RFID Solutions has opened a new Experience Centre for its customers in Miami as part of its expansion plan in the United States. This hub, with over 3000 square feet of space, allows customers to test RAIN and other RFID solutions in real-time, optimizing their item-level tracking and logistics processes. In this way, the company strengthens its presence in the American market, where it already provides advanced RFID solutions and specialized advice to its customers in 11 states.

The company, which is extensively involved in the retail sector, particularly in fashion, collaborates with over 15 major luxury brands, sports goods, and underwear companies in the U.S. to enhance their intralogistics processes using RAIN and other RFID solutions. “The opening of the Miami office is an important step in getting closer to our customers and improving direct service in the region,” states Luis Rius, CEO of Clustag. The office is just 20 minutes from the airport, making it easily accessible for clients.

Since launching operations in the U.S. market in 2021, Clustag has significantly expanded its operations to states such as Washington, California, Texas, Tennessee, Georgia, Florida, North Carolina, Pennsylvania, Rhode Island, Ohio, Kentucky, and Indiana. The new Miami office serves as the group’s operational hub in the U.S. it will house Clustag’s administrative and commercial teams, ensuring closer and more efficient service while strengthening relationships with retailers. Currently, Clustag has 14 ongoing projects in North America, with several still in the design phase.
“We want to help our customers face current and future logistics challenges, improving their efficiency and reduce lead times for wholesale, retail and e-commerce customers, offering a more agile and reliable service”, added Rius.

Live RFID Testing for Maximum Performance

This new Customer Experience Centre location will feature a space that allows for live product reading and coding tests for customers’ actual products, as well as testing RAIN and other RFID solutions under maximum demand conditions, simulating high-performance situations in distribution centres. “No matter which Clustag solution is used, these real-world tests ensure optimal and reliable performance,” explains Jorge Robledillo, General Manager of Clustag for North America. To guarantee top-tier performance of RAIN RFID technology across our RFID read points, we conduct rigorous assessments such as box processing speed measurement, accuracy and consistency checks in tag reading, and cross-reading error detection. In this Experience Centre allow us to simulate real-world conditions in controlled environments, ensuring RFID Solutions maximum reliability, and adaptability to each client’s unique operational needs,” Robledillo added.

The facility will also allow for in-depth testing of Clustag’s RFID software, “ZENTUP ensures flexible and scalable integration with any warehouse management system,” says Robledillo. “Seeing this comprehensive solution in action allows us to anticipate and resolve customer concerns before they even arise,” adds the Clustag North America Director.

Miami’s strategic location, its proximity to key events and numerous international companies have made it a crucial hub for Clustag’s growth. “The city stands out not only for its strong logistics connections but also for its diversity, which will enrich our team,” Rius adds. “We are committed to innovation and always open to adding new talent to continue delivering exceptional service.”

With this expansion, Clustag reinforces its commitment to the U.S. market, offering RAIN RFID solutions that optimize intralogistics processes and improve operational efficiency for its customers. See this YouTube video.

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Cutting Edge Pallet Freight Tracking Tool

Posted on by David Priestman

United Pallet Network (UPN) has announced the launch of SmartTRAK, its bespoke new cutting-edge pallet freight tracking tool which enables users to follow their delivery second by second in real time.

SmartTRAK integrates advanced live tracking, dynamic planning tools, and real-time performance monitoring to ensure that all UPN shipments are managed with absolute precision at every stage of their journey.

UPN Clients can now follow their pallet freight delivery second by second via an interactive map which gives clear real time visualisation delivery status and drop number. They will benefit from complete control every step of the way by knowing precisely when each shipment will arrive, reducing guesswork and enabling seamless coordination. “The introduction of SmartTRAK confirms UPN’s ongoing commitment to service excellence and evolution of industry standards”, said UPN Managing Director, David Brown.

At the core of SmartTRAK is an advanced, bespoke algorithm that generates automatic 2-hour ETA windows during planning. These ETAs are continuously refined in real-time using vehicle location updates, current traffic conditions, time required for each delivery, and scheduled driver breaks. “With the launch of SmartTRAK, UPN Service users enjoy complete control over their logistics, with accurate, real-time insights at their fingertips,” commented Joel Miller, UPN’s Director of Information Technology.

UPN leverages state-of-the-art technology to provide significant advantages to clients. By using the latest technology, the SmartTRAK system:

• Continuously updates delivery ETAs based on real-time driver progress and location
• Highlights potential issues such as early or late arrivals with intuitive colour-coded alerts
• Displays live tracking on an interactive map, ensuring complete visibility of every shipment

SmartTRAK is an innovative palletised freight tracking system, providing benefits that empower businesses with unparalleled control over their logistics operations. By homing in on the company’s distinct point of difference within the sector in terms of its bespoke IT support systems and infrastructure, and its quality driven focus on service excellence, UPN has established a unique position in the Pallet Network Sector with its ‘Unique IQ’ initiative.

From April 2024, United Pallet Network went Carbon Neutral. All palletised freight deliveries handled by its members across its UK wide partner network are now undertaken on a Carbon Neutral basis. In a first for the Sector Carbon Neutral Britain provide UPN with full Carbon Neutral Certification for every Member, certifying all UPN deliveries as Carbon Neutral. Established in 2001, UPN has grown strongly and steadily into a high quality palletised freight distribution network. Focussed on growth through member success UPN currently have over 100 members covering the whole of the UK, and European partners providing coverage throughout 26 countries.

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Fleet Safety Boosted by Telematics Solution

Posted on by David Priestman

Circet, a European provider of telecommunications infrastructure services, has improved safety, reduced emissions and cut operational costs by adopting a fully integrated telematics solution from Geotab Inc. and Lytx. In just three months, Circet and Geotab partnered to connect 3,000 vehicles across Circet’s mixed fleet in the UK and Ireland, representing the biggest deployment of its kind in such a short installation window.

Circet’s fleet, which includes diesel and electric light and heavy commercial vehicles, required a solution capable of handling wide variability in makes, models and drivetrains. The combination of Geotab’s global telematics data platform integrated deeply with the Lytx Surfsight™ video safety platform has given the Circet operations team full visibility into its entire fleet, delivering immediate impact.

Within the first three months of this year, Circet recorded a 16% improvement in its company-wide driver safety score. Key safety metrics such as harsh braking, acceleration and cornering all improved, contributing to an average driver score 42% better than industry benchmarks. These improvements are largely due to the use of Geotab’s Driver Safety Scorecard and near real-time driver feedback from the Lytx Surfsight dash cams, which alert drivers to risky behaviours and send incidents to the operations team for review.

Fuel efficiency has also improved. Circet’s diesel vehicles are now operating at an average efficiency of 10 litres per 100 kilometres, 10% better than peer group leaders. Circet’s transition to electric vehicles is delivering further savings. Over the first three months of 2025, electric vehicles (EVs) accounted for 3% of total fleet trips, covering more than 263,000 miles (424,000 kilometres). According to Geotab’s Electric Vehicle Suitability Assessment (EVSA), Circet stands to save approximately £385,000 annually by expanding its electric fleet and swapping ICE vehicles for EV where appropriate.

Based on results across all vehicle types so far this year, the Geotab and Lytx Surfsight solution could deliver over £2.3 million in fuel savings each year. Ray Verschoyle, Head of Transport Compliance at Circet said: “The combined Geotab and Lytx Surfsight solution has transformed how we manage our fleet. We now have the data we need to improve safety, cut fuel use, lower maintenance costs and operate more sustainably. Their focus on innovation and ability to integrate with our systems made them the perfect partners for our needs.”

Aaron Jarvis, Associate Vice President, EMEA at Geotab, added; “Circet chose Geotab because we offer more than just an off-the-shelf solution. Our continuous investment in product development, combined with strong local service and support, gave them confidence in our long-term value. Our partnership with Lytx allows us to deliver fully integrated safety solutions, and our open platform meant we could align closely with Circet’s internal systems and processes. It’s another example of how Geotab’s ecosystem can support a customer’s needs today while future-proofing business operations.”

Deep integration to meet sustainability goals

The Circet deployment includes Geotab telematics devices and Lytx Surfsight dash cameras with road-facing lenses, and the option of driver-facing ones, too. This hardware is backed by software integration with the Geotab platform, allowing Circet to unify vehicle tracking, video footage and safety data in one system. The rollout was supported directly by Geotab’s local project team, who provided in-person training and implementation support to ensure a smooth transition.

Geotab’s data also supports Circet’s sustainability goals. The company is using Geotab’s certified Scope 1 emissions calculation tools to track fuel consumption and emissions reductions across both diesel and electric vehicles. This structured, data-driven approach is essential as Circet prepares for stricter ESG reporting requirements under EU legislation. With EV driving requiring different skills from traditional combustion vehicles, Circet has used Geotab data to inform driver training, aiming to extend EV range and reduce charging demand. This in turn helps lower Scope 2 emissions and manage charging infrastructure more efficiently.

With these results in safety, efficiency, and emissions reduction, Circet is already seeing a return on its investment. The integrated Geotab and Lytx Surfsight solution is not only improving current operations but also positioning the company for long-term compliance, cost control and growth as it shifts to a low-emissions fleet. The Circet team is now looking to utilise its vehicle data across various business systems and processes with additional integrations into their business reporting tools, internal databases and future plans to feed other key business systems.

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BMW Group Logistics Tests Hydrogen Trucks

Posted on by David Priestman

The BMW Group is driving the future of emission-free heavy-duty transport – with pilot operations of the first hydrogen trucks now underway at Plant Leipzig as part of the H2Haul project. Demonstrating its openness to different technologies once again – including in logistics – the BMW Group’s involvement is one component of its more comprehensive hydrogen strategy connecting transport, production and products.

Emission-free Heavy-Duty Transport

The BMW Group is taking the next step towards sustainable transport logistics: two local emission-free fuel-cell trucks are now entering pilot operations. Part of the European H2Haul project supporting hydrogen-powered freight transport, the trucks will travel between Leipzig, Landsberg and Nuremberg to see how their drive technology performs in everyday operations. In addition, state-of-the-art hydrogen filling stations are currently under construction at Leipzig and Hormersdorf (northeast of Nuremberg) to offer the fast refuelling necessary for truck operations to succeed. The project is being realised by the BMW Group in conjunction with Iveco, DHL and TEAL mobility.

“The right choice of transport is important in global logistics, as elsewhere, to keep us future-focused and efficient in our work. So, transport logistics is another area reflecting the BMW Group’s open-minded approach to technologies. For the first time, hydrogen-powered trucks will support series production in German car manufacturing. We have been working on the project for a number of years now and are rolling out this pilot fleet in collaboration with our partners. It’s an important milestone as it will give us experience of how these trucks work in series operations and help us continue enhancing this crucial technology,” says Michael Nikolaides, head of Production Network and Logistics at the BMW Group.

The H2Haul project looks at how hydrogen fuel cell-powered trucks perform in real-world driving and what they can contribute to fossil fuel-free heavy-duty transport. All in all, 16 vehicles are involved, subsidised by the Clean Hydrogen Partnership and operating across Europe. Of those, two are IVECO S-eWay Fuel Cell trucks on the road for the BMW Group. Findings from the pilot project are expected to help enhance the technology and get it market-ready. A valuable addition to the battery-electric trucks already on the road, the hydrogen vehicles are quick to refuel and offer significant range. They are also flexible to use as they are independent of the charging infrastructure or grid development.

The BMW Group’s participation in the H2Haul project is a key cornerstone in its Reduced Logistics Emissions Strategy. This aims to achieve emission-free transport logistics, with a dedicated cross-departmental team developing measures to reduce CO₂ from the BMW Group’s road, rail and shipping transport worldwide. Drive technologies receiving a positive rating are advanced into pilot projects and new plant concepts, whose emissions data is then systematically recoded to enable accurate CO₂ reporting.

Fuel cell technology is not all the BMW Group is testing: it is also involved in the HyCET (Hydrogen Combustion Engine Trucks) project. In the future, this will see two 40-tonne and one 18-tonne truck powered by hydrogen combustion engines join its logistics fleet. Funded by the German Federal Ministry for Digital and Transport (BMDV), the HyCET project is being implemented by the BMW Group in conjunction with DHL, Volvo Trucks, Deutz, KEYOU and TotalEnergies.

By testing H₂ fuel cells and combustion engines simultaneously, the BMW Group is remaining true to its open-minded approach to technologies – including in logistics. While fuel cells work more efficiently, combustion engines are cheaper to produce as they essentially work on the same tried-and-tested principle as a diesel. The EU ordinance classes both hydrogen technologies as zero-emissions, and out on the road they are both being trialled on the same routes and refuelling at the same filling stations. The aim is to determine the best use case for each technology in BMW Group logistics.

Heavy-duty transport is not the only area where the BMW Group uses hydrogen: it also uses it within its own plants. Plant Leipzig is considered a pioneer in this regard, being home to the first indoor hydrogen filling station in Germany since way back in 2013. Today it operates five such facilities as well as one of the largest fleets of fuel cell-powered forklifts and tug trains in Europe. The latest filling station even offers fully automated refuelling – another first.

Innovative solutions are a defining feature in production too, where the BMW Group is the first carmaker in the world to roll out a brand-new type of burner, now on stream in Plant Leipzig. The new bivalent system can be powered by gas as well as hydrogen, and there are currently five such burners operating in contrast roof painting for the MINI Countryman. Further burners are currently being converted for hydrogen, with the longer-term aim of doing away with gas power completely and reducing CO2 emissions further. “Our vision at Plant Leipzig is to largely decarbonise production. We can achieve that, in part, by replacing fossil fuels with hydrogen,” explains Petra Peterhänsel, Plant Director at BMW Group Plant Leipzig, taking a longer view of the plant’s overall direction for the future.

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