Subscribe

Author: Keith McKinley

Shipping Finance Closer to Net Zero Alignment

Posted on by Keith McKinley

Continued growth of climate transparency from financial institutions show that the global finance portfolio for shipping has moved closer to alignment with ambitious decarbonisation trajectories set by the International Maritime Organization (IMO), aiming to remove emissions from international shipping by 2050.

The new insights are revealed in The Poseidon Principles’ fifth Annual Disclosure Report, which showcases the climate alignment of 35 major financial institutions across 13 countries, representing nearly 80% of the global ship finance portfolio. The Poseidon Principles are a global framework for financial institutions to assess and disclose the climate alignment of their shipping portfolios, aiming to promote decarbonisation in the maritime industry.

This year’s report, which also marks the fifth anniversary of the Poseidon Principles, highlights the transformative progress achieved since its launch in 2019, when it became the world’s first sector-specific framework for measuring and reporting climate alignment in shipping finance. What began as a conversation in 2017 and was introduced as a concept under development at the first Global Maritime Forum Annual Summit in Hong Kong in 2018 has since evolved into a celebrated model for industry-specific, transparent climate disclosure in shipping — one that has inspired similar initiatives in sectors like steel, aluminium, and aviation.

Key findings from the 2024 Annual Disclosure Report include:

• Transparency on the rise: An average of 93.3% of signatories’ portfolio activity was reported, with all signatories reporting ship emissions data from at least 70% of their portfolio, 28 signatories achieving a reporting rate of 90% or above, and eight achieving 100%.
• Climate alignment performance: The average climate alignment scores showed a noticeable progression from last year, with portfolios’ alignment to the IMO’s ‘minimum’ and ‘striving’ decarbonisation trajectories improving.
• Increased collaboration: Collaboration and engagement are increasing between financial institutions and their shipping clients, demonstrating the initiative’s pivotal role in guiding the industry toward achieving net zero emissions by 2050 in line with the 2023 IMO Greenhouse Gas Strategy.

“The Poseidon Principles have redefined what is possible in transparent climate reporting for the shipping industry,” said Michael Parker, Poseidon Principles Chair and Chairman of Global Shipping & Logistics, Citi. “As we celebrate the fifth anniversary of this initiative, we recognise both the progress made and the opportunities ahead – this milestone shows how far we have come in five years, but also serves as a reminder that we are now five years closer to critical decarbonisation targets for 2030, 2040, and 2050. We must accelerate efforts, addressing key areas of misalignment and ensuring collective ambition turns into transformative action.”

By integrating real emissions data into financial decision-making, the framework has also enabled signatories to use climate alignment scores to shape financing decisions, guide sustainability-linked lending, and support investment in green technologies such as biofuels and alternative propulsion systems. Increased transparency has also fostered closer collaboration between financial institutions and shipowners, reinforcing a shared commitment to decarbonisation.

While celebrating significant progress, the report also acknowledges the challenges of aligning with IMO’s ambitious roadmap.

“We have much to celebrate in this annual disclosure report, especially in terms of increasing levels of transparency” said Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries, Societe Generale. “However, alignment with 2050 net zero goals remains a challenge, in particular for certain vessel types that are facing operational complexities. Now, the Poseidon Principles’ adoption of well-to-wake emissions reporting offers a robust foundation for addressing these challenges head on. The Poseidon Principles will continue to evolve, setting new benchmarks for transparency and commitment to a sustainable future.”

In 2023 the Poseidon Principles adopted well-to-wake emissions reporting, encompassing full lifecycle emissions of fuels and setting a new benchmark for climate reporting in line with the latest climate science and supporting the IMO’s latest ambition.

In just five years, the Poseidon Principles have set the global standard for climate transparency in ship finance and inspired other financial disclosure initiatives like the Sustainable STEEL Principles for steel financing, the Sustainable Aluminium Finance Framework for aluminium financing, and the Pegasus Guidelines for aviation financing. Climate disclosure reporting plays a crucial role in enhancing the transparency and accountability of climate and environmental impact, risk management, and strategic planning of participating organisations and their clients.

As the Poseidon Principles enter their sixth year, the Association celebrates the transformative power of collective action, and the tangible progress made toward decarbonising global shipping. While challenges remain, the shared commitment of signatories, shipping clients, and stakeholders is a testament to what can be achieved through collaboration and transparency.

similar news

Automotive and Supply Chain Specialist Releases CSR Report

 

Container Port Carbon Inset Programme Launched

Posted on by Keith McKinley

DP World is trialling an innovative carbon reduction programme at its UK logistics hubs, London Gateway and Southampton, aimed at helping cargo importers cut their emissions.

Starting on 1st January 2025 for an initial six-month trial, the Carbon Inset Programme will reward importers with 50kg CO₂e of carbon credits for every loaded import container they move through DP World’s UK terminals. These independently certified credits, issued quarterly, will showcase participating companies’ efforts to reduce the indirect (Scope 3) emissions in their supply chains.

Unlike traditional carbon offset credits, which compensate for emissions through external projects like tree planting, inset credits reflect a tangible reduction in emissions achieved directly in a company’s own supply chain. DP World’s inset credits are generated through its subsidiary, Unifeeder, which deploys incrementally lower-carbon fuels across its Northern European shipping network. These credits are verified and pooled, allowing registered importers to access independently certified carbon credits.

For businesses, this represents a transparent and measurable way to cut Scope-3 emissions – indirectly produced along the supply chain, while demonstrating sustainability commitments to customers. The inset initiative builds on DP World’s award-winning Modal Shift Programme, which reduced emissions for its partners by more than 17,000 tonnes in its first year.

John Trenchard, Vice President – Commercial & Supply Chain, DP World in the UK, said: “At DP World we are constantly exploring ways to reduce carbon emissions across our customers’ supply chains. Insetting carbon emissions is a transparent, direct and pragmatic approach with immediate measurable impact for our customers. By providing easy access to an independently certified inset programme, we aim to create better awareness and encourage the adoption of more sustainable practices. By participating in the trial, a world first, import cargo owners can actively contribute to global decarbonisation efforts while aligning with their own sustainability goals.”

If 50% of import volume participates in the trial at DP World’s UK container terminals, this could replace over 11,000 tonnes of traditional fossil fuel with lower carbon marine fuels, equivalent to the reduction of 10,000 tonnes of carbon dioxide.

Christian Hoepfner, Director Group Decarbonisation at Unifeeder Group, added: “At Unifeeder, we are committed to using alternative fuels to decarbonise our logistics solutions. We are supporting DP World in the UK in their innovative Carbon Inset Programme by contributing verified GHG reductions generated on our vessels operating in Europe.”

similar news

$600m submitted on DP World Trade Finance platform

 

The Supply Chain in 2025: Trends and Challenges

Posted on by Keith McKinley

2024 was a complicated year for the supply chain; from disruptions to shipping on the Red Sea through to rail strikes, port closures and announced changes to trade tariffs by the leading economic power internationally, the challenges to unhindered trade were many and diverse. So what’s in store for 2025? Simon Thompson (pictured), VP Northern Europe at JAGGAER, delves into a dozen major trends.

1. Cost Savings
Cost management and achieving savings remain a top concern for businesses worldwide. Investments in AI-driven analytics will enable businesses to identify cost-saving opportunities across the supply chain by identifying inefficiencies, optimizing supplier performance, and negotiating better contract terms — ultimately enhancing the bottom line without compromising quality.

2. Risk Management
2024 was a complex year for supply chains globally. It saw disruptions caused by Houthi attacks on vessels in the Red Sea, Canadian rail strikes and the closure of Ningbo Port in China due to a container explosion on the YM Mobility to name a few. Whether geopolitical, economic, or environmental, the vulnerabilities of the supply chain have been evident and savvy businesses have made moves to derisk their operations. Using technology and data to improve transparency and communications all along the chain, it is in fact possible to prevent bottlenecks and rapidly identify alternative routes or suppliers.

3. AI and data quality
It’s becoming a mantra that AI is only as good as the data it uses. As businesses leverage AI automation to make processes more efficient, sourcing error-free timely data from across the supply chain can be a thankless task for both suppliers, inputting information, and buyers, analysing it without automation. As effective AI increases the demand for large volumes of high-quality data with transparent and traceable data sources, it will become crucial to leverage automation to drive efficiency.

4. Blockchain Technology
Blockchain technology is expected to play a crucial role in making supply chains more transparent and traceable. With its decentralized ledger system, blockchain offers unparalleled data integrity, making it easier to track the provenance of goods and ensure compliance with ethical and environmental standards. Although this technology is still at an early stage, we can expect the debate to heat up around blockchain in 2025.

5. Cybersecurity
More use of technology, however, also means more exposure to cyber threats. As businesses place more and more of their data and systems on the cloud, it is becoming more and more complex to protect sensitive customer data as mandated by international regulations. Investing in systems and governance to protect the business across all its international operations is key.

6. Regulatory Compliance
Greater consumer awareness of sustainability and ethical issues along the supply chain, in addition to calls for greater user safety and quality, are driving increasing scrutiny from regulators. The EU Deforestation Act 2023/1115 and the US Uyghur Forced Labor Prevention Act (H.R. 6256) are just two examples of regulations concerning the supply chain. Organizations must stay ahead of the curve by setting up systems to proactively and simply assess their suppliers along the chain to ensure ethical sourcing, anti-corruption measures, and environmental responsibility.

7. Scope 3
As businesses strive to achieve their sustainability goals, Scope 3 emissions — those indirectly resulting from the supply chain — are increasingly coming under scrutiny as they typically account for the majority of carbon footprint. Improving communication channels with suppliers and gathering information regarding their eco-friendly practices, responsible sourcing of raw materials, and reduced energy consumption, is key to ensuring that Scope 3 emissions are curbed. Shifting the focus from cost cutting to creating partnerships for sustainability is key to creating greater transparency and flexibility as well as an environment that fosters sustainable innovation along the supply chain.

8. Supplier relationship management
More resilient supply chains depend on better collaboration between parties. Stronger partnerships are created through transparent communication channels that make transmitting key information on certifications, potential bottlenecks, low stock or by provisioning difficulties in real-time without overburdening the supplier with an enormous admin onus. Providing seamless and streamlined systems to expedite information sharing can create the ideal environment to develop new strategies such as new shipping routes, new raw or component product suppliers or even co-investment in new technologies and innovation to improve end products.

9. Nearshoring, Reshoring
As the new United States president steps into his role on 20th January, the world will be holding its breath to find out whether the tariff increases threatened on international trade will take effect. With Chinese products risking “an additional 10% tariff, above any additional tariffs”, Mexico and Canada an increase to 25% and EU businesses anything between 10% and 20%, it is likely US businesses will be increasingly sourcing from national providers. Closer to home alternatives, such as sourcing from Mexico would shorten the supply chain and enhance control over logistics, as well as reducing environmental impact by reducing the distance goods travel.

10. Sourcing from Emerging Markets
Finally, another strategy to respond to tariff will be sourcing from emerging markets. This strategy, useful to help diversify and thus risk-proof the supply chain, can also benefit sustainability provided regions with lower carbon footprints or renewable energy sources are selected.

Conclusion

The global supply chain has been put under significant pressure in 2024, and response has highlighted vulnerabilities as well as ideal pathways to resilience. Technologies and strategies taking the lead in 2025 will build on these as businesses continue to bolster their supply chain against volatility and disruptions, while strengthening areas of potential exposure with increased intelligence derived from greater transparency along the entire supply chain.

similar news

Tariffs and Trade Barriers as Top Concern of Supply Chain Leaders

 

Clark Material Handling adds Dealer in Romania

Posted on by Keith McKinley

Clark Europe is pleased to announce the partnership with Mecano Valmar, the new authorized dealer for Clark industrial trucks in Romania. The cooperation between Clark and Mecano Valmar marks an important milestone in Clark’s expansion efforts in Eastern Europe and will strengthen the presence of the Clark brand in Romania.

Mecano Valmar was founded in 2003 by Marinela and Marian Mindru in Cornetu-Buda in Ilfov County. The company focused on servicing and reconditioning used forklift trucks. When their son Valentin joined the company in 2016, he expanded the business to include the sale and servicing of new vehicles imported from China. The office building, a workshop and the spare parts warehouse are located on an area of 3500 m2 on 1500 m2. A total of 17 employees work at the Cornetu-Buda site – 9 of them in service alone.

The family-owned company Mecano Valmar has extensive experience in material handling and logistics and will offer the entire Clark Europe product range in Romania in the future. In addition to the sale of all forklift truck classes and warehouse trucks, this also includes the supply of Clark spare parts and accessories, a comprehensive range of services including rental and financing as well as comprehensive service for new and used Clark industrial trucks.

Dealer in Romania

“The partnership with Clark Europe is a great opportunity for us to expand our product offering with high-quality industrial trucks, so that we can offer our customers in Romania first-class products and services in the field of material handling. We look forward to growing together with Clark,” explains Valentin Mindru, Managing Director at Mecano Valmar.

“We warmly welcome Mecano Valmar to the Clark family,” says Rolf Eiten, President & CEO at Clark Europe. “With their expertise and commitment to quality, we are confident that the Clark brand in Romania will be represented in the best possible way by Mecano Valmar in the future and that our customers there will receive excellent service. We wish our new partner every success in this endeavour and will provide the best possible support.”

similar news

Romania terminal reaches construction milestone

 

Navigating the Christmas Waste Conundrum with AI

Posted on by Keith McKinley

Artificial intelligence is transforming how retailers prepare for Christmas, turning data into actionable insights for a sustainable celebration, writes Svante Gothe (pictured below) Head of Sustainability at Relex Solutions.

As retailers dive into the bustling Christmas season, a pressing challenge looms – spoilage and waste, particularly for fresh and short shelf-life products like Brussels sprouts. While it may be challenging to address spoilage and waste, there is a critical opportunity for retailers to apply Artificial Intelligence (AI) and Machine Learning (ML) to reduce waste and align with the increasing consumer demand for sustainability.

Retailers, grappling with inflation and economic uncertainty, are finding it increasingly difficult to accurately plan for the seasonal demand. The complexity is exacerbated during occasions like Christmas, where seasonal items such as sprouts have a finite shelf life and an even shorter consumer interest span.

According to the UK Environmental Agency, the UK generates 30% more waste around Christmas time, and this includes waste from Christmas food shopping and dinners. Infact, Business Waste estimates that 17 million Brussel sprouts go to waste each Christmas. However, there may be a shift as consumer consciousness rises — highlighting the potential for AI to help retailers predict the tipping point between consumer wastage and consumer consciousness.

Predictive power in supply chains

Beyond consumer habits, it is the retailers who are under pressure to curtail this waste at its origin — the supply chain. The integration of real-time analytics into the demand forecasting process can make businesses more agile in reacting to unexpected changes, making the system robust against sudden shifts in market dynamics.

The key to achieving this lies in harnessing the predictive prowess of AI and ML. By implementing AI-driven demand forecasting, retailers can capture the nuances of hundreds of demand drivers, translating complex consumer data into actionable insights. This means businesses have visibility into future demand, allowing for improved planning processes across merchandising, supply chain, and operations, ultimately leading to reduced waste.

The challenge, however, is not just in forecasting demand but also in ensuring that this information propels a collaborative effort across the entire supply chain. The decisions on how much to produce for items like Brussels sprouts happen months before Christmas, and so the coordination between retailers and producers is therefore vital. By sharing forecasts and planned orders well in advance, the entire supply network can adjust accordingly, reducing the risk of overproduction and subsequent waste.

Inventory planning

Another critical application of AI in this endeavour is inventory planning. By automating replenishment and allocation tasks in all nodes of the supply chain, AI ensures that the flow of goods is synchronised with real-time demand, reducing the chances of overstocking and the need for deep markdowns that often fail to clear excess inventory. Markdown and clearance optimisation also play a pivotal role in this sustainable orchestration. AI systems can dynamically adjust prices throughout the season, ensuring that products reach consumers before they lose their relevance, thus avoiding the post-Christmas slump that turns potential sales into waste.

Cutting waste for all retailers

The strength of an AI system in retail lies in its ability to be tailored to the specific needs of different business models and scales of operation, ensuring that every retailer, regardless of size, can reduce waste and improve sustainability. With Christmas spending expected to reach £88.3bn this year, and more people participating in the festivities, the opportunity to optimise the supply chain with AI is more significant than ever.

Simply put, the use of AI in retail planning is a strategic imperative in the fight against waste. As we move through the holiday season, the onus is on retailers to adopt these advanced tools and practices to optimise their supply chains and develop a more sustainable retail strategy. As retailers embrace this technology, we edge closer to a future where the holiday waste issue becomes a thing of the past, replaced by smart and data-driven approaches that balance consumer demand with environmental responsibility.

Similar news

Express Deliveries “Rise Almost 7000% at Christmas” Claims Research

 

Guide Published to Decoding Global Supply Chain

Posted on by Keith McKinley

International law firm Reed Smith has published ‘From A2B: Decoding the Global Supply Chain’, an in-depth exploration of the rapidly evolving supply chain landscape. The report examines the worldwide forces shaping global logistics today and into the future, offering businesses strategic insights to navigate the challenges and opportunities arising in this increasingly complex field.

Spearheaded by Reed Smith’s global Transportation Industry Group and drawing from the perspectives of the firm’s global network of 30+ offices, the report addresses critical themes that include climate change, regulatory shifts and technological advancements. The guide serves as a roadmap for businesses to stay agile and resilient in the face of global disruptions.

Regulatory and compliance challenges

Businesses are navigating a complex web of compliance issues, including the U.S. semiconductor ban, sanctions, antitrust risks, and the EU’s AI Act. National security screenings and money laundering threats further heighten the need for robust risk mitigation strategies.

Technological innovations and future trends

From 3D printing and autonomous ships to augmented reality and digital product passports, cutting-edge technologies are reshaping supply chains. Reed Smith emphasizes balancing innovation with legal and operational considerations.

Environment and sustainability

Sustainability is now central to supply chains, with a focus on green methanol, LNG transitions and deep-sea mining. EU laws and global plastics treaty negotiations are driving ESG integration while green innovation offers new investment avenues.

Financial and investment considerations

Financing innovations, insurance solutions and evolving investment opportunities in shipping and freight are key to managing supply-chain disruptions effectively.

Operational and logistical challenges

From negotiating logistics agreements to addressing HR impacts and managing international employee mobility, businesses must tackle operational hurdles to ensure efficiency.

Jurisdiction-specific supply-chain challenges

Regional nuances, from U.S. state laws and China’s export controls to Middle Eastern drone opportunities and UK trade policies, reflect the global nature of supply chain challenges.

Transportation Industry Group Global Chair Richard Hakes reflects on the unique challenges of this fast-changing field: “The pace of change in the supply chain is relentless. Helping clients through the legal side of it requires a strong understanding of law, but you also need to keep up with all the latest trends, industry developments, technologies and regulations. Logistics is going through a massive transformation right now. New technologies are coming in, and customer expectations are changing just as fast. ‘From A2B’ digs into these shifts and gives our clients tools to stay flexible and thrive amid constant change,” Hakes says.

Remarking on how the global supply chain impacts everyday life, Hakes says, “The supply chain isn’t some far-off, industrial concept anymore – it’s something that’s touching us all, right where we live. Every day, the things we buy and use make their way to us through a massive network that spans the globe. It’s something that matters to everyone, whether you’re a consumer, a worker or a business – it’s just part of how we live now.”

As a global law firm, Reed Smith provides strategic advice to transportation and logistics clients in complex regulatory matters, high-stakes litigation and major transactions. By addressing critical topics such as sustainability, digital transformation and compliance, From A2B: Decoding the Global Supply Chain reflects Reed Smith’s commitment to helping clients thrive in an increasingly interconnected and dynamic world.

similar news

Business as normal, but always changing

 

Basra Gateway Terminal – Container Line Service to Iraq

Posted on by Keith McKinley

Basra Gateway Terminal (BGT), Iraq’s premier multi-purpose cargo handling facility located at the Port of Umm Qasr, received the inaugural call of the RCL West India-Gulf (RWG) service last October.

Operated jointly by Regional Container Line (RCL) and Bengal Tiger Line (BTL), the RWG service strengthens the country’s trade connectivity by introducing faster, more efficient shipping connections to India and the Middle East. With a 21-day turnaround time, the service strategically rotates through key ports: Mundra, Nhava Sheva, Jebel Ali, and Umm Qasr, before returning to Mundra.

“We are excited to welcome RCL and BTL as partners in advancing trade and connectivity in the region. The RWG service reinforces our commitment to providing world-class service and supporting Iraq’s role in the global trade network,” said Romeo Salvador, BGT chief executive officer.

The maiden call highlights BGT’s importance as Iraq’s most advanced terminal. With modern infrastructure, streamlined operations, and proximity to major regional markets, BGT serves as a vital gateway for businesses looking to tap into Iraq’s emerging economy.

RCL and BTL have each deployed a vessel to the service – the Vira Bhum and the Intersea Traveler. A total of three vessels with capacities ranging from 2,500 to 2,700 TEUs will be deployed to the service to ensure reliability.

A subsidiary of International Container Terminal Services, Inc. (ICTSI), BGT is the gateway of choice in Iraq, offering shipping lines and cargo owners unparalleled access to efficient, scalable and future-ready port solutions to meet the demands of modern global trade.

Basra Gateway Terminal (BGT) is a subsidiary of International Container Terminal Services (ICTSI) headquartered in the Philippines. In 2014, ICTSI signed a contract with the General Company for Ports in Iraq to manage, operate and rehabilitate terminal facilities in North Port Umm Qasr, Iraq and to develop and expand container handling capacity via new infrastructure development. ICTSI has progressively built on this initial commitment.

similar news

Iraq Joins TIR Convention to Boost Development

 

Fortna Announces Partnership with Sitma and Packsize

Posted on by Keith McKinley

FORTNA, an automation and software company for the full logistics value chain, is pleased to announce new strategic partnerships with Packsize and Sitma. These partnerships expand FORTNA’s capabilities to deliver innovative end-of-line packaging solutions that improve efficiency, reduce costs, and promote sustainability for its customers.

Packsize, a global supplier of on-demand packaging, specializes in custom-sized box solutions designed to minimize waste, improve workflow efficiency, and increase operational scalability in packaging environments. Their systems empower businesses to lower material usage and optimize packaging processes, ultimately enhancing environmental responsibility and operational effectiveness.

Sitma, a longstanding innovator in automation for packaging, logistics and distribution, brings over 50 years of expertise in paper mailer technology, serving sectors such as e-Commerce, printing, and postal services. Sitma’s solutions aim to streamline operations while supporting efforts to reduce environmental impact, aligning seamlessly with FORTNA’s commitment to delivering efficient, sustainable solutions.

These partnerships reflect FORTNA’s dedication to supporting customers in reducing waste, optimizing labour, cutting transportation costs, and improving operational flexibility. With on-demand packaging becoming essential for businesses seeking to achieve sustainability and cost-efficiency, this collaboration strengthens FORTNA’s ability to offer solutions that boost productivity and customer satisfaction.

packsize-collaborates-walmart-right-sized-packaging

“We are excited to partner with Packsize and Sitma, combining our strengths to deliver cutting-edge, end-of-line packaging solutions that meet evolving customer needs,” said Rob McKeel, CEO of FORTNA. “This collaboration continues to increase operational efficiency and sustainability for our customers, preparing them to confidently address ever-changing business challenges.”
“The FORTNA and Sitma partnership represents a key advancement in automated e-Commerce packaging. Companies can now leverage this collaboration to enhance efficiency, reduce plastic use, and advance their sustainability goals,” said Robert Nilsson, General Manager of Americas, Sitma.

David Lockwood, CEO of Packsize, added, “Our partnership with FORTNA showcases our dedication to delivering measurable value by implementing integrated automated packaging solutions that provide benefits beyond the warehouse. I am excited about the value we can bring to both new and existing customers.”

similar news

Packsize Collaborates with Walmart over Right-Sized Packaging

 

Logistics At Every Turn, Live

Posted on by Keith McKinley

As logistics partner of the McLaren Formula 1 Team, DP World recently held an exclusive event for its customers and stakeholders at the McLaren Technology Centre in Woking. Under the banner of ‘At Every Turn Live’, the conference featured a stellar line-up of speakers from the worlds of F1 and logistics, and discussed a wide range of topics including the implications for global trade of the US Election, the impact of AI on transport and logistics, supply chain resilience, and how adopting a ‘pit stop mentality’ can help businesses can take strategic pauses to reset and go again in unpredictable times.

The event, which was compered by Nicki Shields, well-known to motorsport fans as the presenter for Formula E’s TV coverage, got underway with opening remarks from Beat Simon, DP World Group Chief Operating Officer for Logistics, followed by an enlightening conversation between Beat and Andrea Stella, Team Principal of McLaren F1 Team.

Beat believes the synergy between DP World and McLaren lies in an aspiration to propel and to be leading, as well aspassion and precision. “If you look at what happens in F1 or logistics, it’s about things having to work and an entire team working together to make things happen.”

The pair then handed over to innovation guru Dr Chris Brauer, who walked the captivated audience through how AI is shaping today’s business landscape. “It’s a time when collaborations between humans and technology will reshape the world in ways we can only begin to imagine.” He described AI as “one of the most remarkable innovations in the history of civilisation,” going on to highlight areas where it can play a significant role, such as sustainability, and used an example of how the NHS has used AI to optimise its supply chain for short-life blood products, helping to reduce waste, overstocking and guaranteeing supply.

Independent Trade Economist Dr. Rebecca Harding then took the audience on an interactive journey, encouraging them to participate in real-time decision-making as a means to illustrate how global challenges are affecting today’s business landscape and how these may be overcome. With a focus on maritime trade, she workshopped a scenario using real-world examples of the threats supply chains are coming under and concluded with the line: “This was not fiction. Everything we have seen and said today is actually happening.”

Pit Stop Mentality

Peter MacLeod, Editor of Logistics Business Magazine, hosted a panel of three under the ‘Pit Stop Mentality’ title, featuring retail and consumer trends guru Mary Portas, OBE, economist John Ferguson and Hans van der Eijk, Senior Vice President Sales & Account Management Contract Logistics at DP World Europe. The discussion focused on the evolution of logistics and retail, emphasising the shift from physical stores to online efficiency and the impact of COVID-19 on consumer behaviour. Key points included the rise of “beautiful businesses” which prioritise societal roles, the importance of community connection, and the shift from just-in-time to just-in-case inventory management. The conversation also highlighted the significance of sustainability, with businesses integrating recycling and local sourcing.

Additionally, this session touched on the psychological aspects of staying ahead, drawing parallels between motorsport and business leadership, emphasising resilience, motivation, and decision-making under pressure.

Interviewed by BBC chief presenter Maryam Moshiri as part of another panel under the heading ‘Global Race, Global Reach’, Beat Simon summed up DP World’s view on a changing geopolitical landscape by saying logistics is like water: “We are always looking for the easiest way to flow.” Addressing supply chain visibility, he described eloquently how the term can now be applied all the way down to SKU level, giving freight forwarders unprecedented knowledge of the status of a particular shipment. In today’s geopolitical landscape, building resilient supply chains may imply additional costs. Scenario planning is key in planning ahead, remaining agile and ensuring competitiveness.

Cyber Attack Protection

Sir John Sawers, former chief of the UK Secret Intelligence Service MI6, talked about cybercrime, expressing surprise at how the fear of 10 years ago – of some kind of digital Armageddon – has not happened, but that the threat has instead moved into the world of denial of service attacks of businesses, many of which are happy to pay a ransom rather than risk business disruption. His experience of global affairs led to a fascinating look at how countries are putting mechanisms in place to prevent similar attacks affecting governmental systems.

Matthew Griffin, a leading futurist, said the proceeds from digital/cyber crime is generating revenues of $1.2 trillion, growing at 125% each year. “As we see the levels of cybercrime increase dramatically, your cyber budgets will increase by two-to-three per cent each year.” He described how GPT4 agents have been used to hack into 53% of military systems within two minutes, and how autonomous, adaptable, multi-sensory smart cyber defence systems are now being developed in an attempt to counter this threat.

Sir John said businesses should prepare for events they may not have thought about before, and to consider how they are going to survive if a crucial supply line is threatened. Beat Simon agreed, adding: “Plan for the unexpected.”

Beat Simon welcomed the fact that DP Word’s customers are starting to take climate change very seriously, citing events such as the reduction in capacity of the Panama Canal as a very obvious impact of the crisis, but Sir John said a reversal of US policy may threaten global targets set by the Paris Agreement. Griffin, responding to a question from the audience about the cost of sustainability, said the ultimate target for a business is to be sustainable as well as offering products at a competitive cost. With growing energy costs, this seems challenging at first sight, but renewable energy costs are decreasing, and nearshoring can both cut transport costs and reduce carbon consumption. Taking fast fashion as an example, referencing Mary Portas’ earlier contribution, he cited lab-grown cotton as a way to make this consumer habit more sustainable.

Lessons from McLaren

Formula 1 fans in the audience had plenty of content to keep them engaged; as well as a tour of the McLaren F1 Team factory and a close-up look at some of the brand’s most iconic racing machinery, Zak Brown, CEO of McLaren Racing addressed the audience alongside two-time F1 World Champion Mika Häkkinen. The pair covered considerable ground, dating from their starts in motorsport as young boys all the way up to the latest Grand Prix. Häkkinen spoke passionately about his recovery from a potentially career-ending injury, and the resilience he showed to get back behind the wheel. He also talked about the mentality of going seven years before his first F1 victory, and how he fine-tuned his life – his routines and close team – to achieve his ultimate goals.

Brown’s insight was fascinating, particularly when discussing real-time decision-making and how clear commands and predetermined responsibilities – whilst also allowing space for individual decisions – has helped bring his team back up to championship leaders.

Summarising the day, Rashid Abdulla, CEO and Managing Director, Europe, DP World, said: “It is truly inspiring to be here at the McLaren Technology Centre. The day has been incredibly insightful, with contributions from panellists representing diverse backgrounds, industries, and perspectives. What stands out from McLaren’s example is that while any company can have the best vision and strategy, it is clarity that drives true engagement.

“At DP World, our goal is to build a strong and sustainable business model that delivers value to our customers while ultimately enabling consumers to access better products at lower costs. Events like this are crucial for fostering collaboration and driving innovative solutions for our industry.”

similar news

DP World Teams up with Renault F1 in Major Partnership Deal

 

AI Unleashed in Florida

Posted on by Keith McKinley

Peter MacLeod reports from IFS Unleashed, the software giant’s biennial partner summit in Orlando, where AI and sustainability dominated the conversations.

Taking place in Orlando, Florida, IFS Unleashed is billed as a premier event for IFS partners and customers to connect and exchange insights based mainly on the use of AI in the industrial ecosystem. It’s impossible to attend a two-day conference with multiple sessions starting at breakfast and running through to each evening and then constrain my thoughts to two pages of this esteemed organ. So, let me fly through some of the key takeaways.

CEO Mark Moffett started proceedings by describing the part AI is playing in industry and why it is important to jump on the bandwagon. He says $4tr will be added to the global economy by AI over the next 10 years, describing it as “the fourth industrial revolution”. He adds that you can either “watch it happen and wait and wonder whether it will work, or run towards it and grab the opportunity with both hands”. He threw to a specially recorded conversation between him and Microsoft CEO Satya Nadella, who described AI as “the dawn of a new computing era”.

A series of presentations covered a wide variety of AI-related topics, including how it can be embraced to manage asset lifecycle, plus a motivational talk by Peter Weill, of the MIT Sloan School of Management in which he discussed the merits of becoming a “real-time business” whereby decisions are made instantaneously using trusted data assisted, obvs, by AI tools.

Unsurprisingly, the topic of sustainability was widely addressed across the conference. We heard how embracing it as part of holistic decision-making processes leads to better outcomes, but that the acceleration towards net zero is stuttering. Instead of pushing back against compliance, Deliotte’s John O’Brien urged businesses to not waste all that work just on compliance, but to use it as a competitive advantage, especially for those businesses targeting younger consumers. Oh, and the one and only Usain Bolt spoke eloquently for an hour about his life, career and post-sprinting activities. All fascinating stuff, and recorded for posterity on the High Performance podcast.

AI & Supply Chain

With so much activity happening on-stage and in the various breakouts during IFS Unleashed, I was ushered into a quiet corner with Christian Pedersen, IFS Chief Product Officer, to help distil some of the information being shared across the event. I wanted to explore more about what IFS is doing in transport and logistics and how businesses can start to embrace AI to stay competitive.

Logistics Business (LB): How does IFS define supply chain?

Christian Pederson (CP): We refer to it as supply chain rather than logistics, and it really is the heart of most of the solution we provide. For the manufacturer, warehousing and logistics are critical, especially for large, high volume businesses for whom shipment and logistics is super-critical. So, from our perspective our logistics solution is both for manufacturers and for service providers.

LB: How can IFS help a business to take emission control into account during procurement?

CP: We integrate emission characteristics into our procurement process, allowing for supplier evaluations based on carbon footprints. This is done through software like Climatic, which helps track emissions whether you’re producing or shipping tyres or clothes. You can actually affect the type of footprint that they have.

LB: What role does AI play in transportation and logistics?

CP: We focus on optimising loading processes to ensure trucks are as full as possible. This reduces the carbon footprint by minimising empty trips, which is of course also crucial for operational efficiency. AI is integral in improving market approaches for businesses with extensive transport operations. For example, our demand planning solution uses advanced algorithms, including Google’s time-series forecast models, to enhance forecast accuracy and optimise fleet needs.

LB: Can you explain the benefits of these AI forecasts?

CP: AI can lead to significant improvements – an 8% increase in forecast accuracy, which translates to an 11% reduction in safety stock while maintaining the same service levels. This not only cuts costs but also reduces emissions, giving companies a competitive advantage.

LB: What advice would you give to a logistics business which is hesitant to adopt AI?

CP: I’d say, “Think big, but start small.” It’s essential to make AI understandable and explainable to build trust. We talk about explainable AI, meaning what is this AI model actually doing? There is always a risk of feeling that the AI is doing something I don’t understand – that the AI is a black box and something is happening in it and I don’t trust the black box because I can’t see what’s in it. We try to do specific AI capabilities that are understandable and explainable.

LB: It’s is not something you can just switch on, so how can businesses gradually embrace AI?

CP: We have what can be described as a smorgasbord with different AI elements. You don’t have to take the whole meal – maybe you’ll start with the dessert. We try to explain to customers to start with smaller, manageable projects, like automating specific tasks, before scaling up. This approach allows them to appreciate the benefits without feeling overwhelmed.

Leveraging Advanced Technology

Grabbing 15 minutes with senior IFS personnel at Unleashed was a challenge, given how many customers were also seeking their time. However, I was fortunate to be able to divert Max Roberts, the COO of IFS, away from the main event for a few minutes to discuss leveraging advanced technology to improve asset management, enhance decision-making, and drive operational efficiency.

LB: What industries do you focus on, and how does technology play a role in them?

Max Roberts (MR): We work with various asset-intensive industries, particularly transportation, manufacturing, and utilities. Technology is crucial in managing assets, enabling predictive maintenance, and ensuring that operations run smoothly, as downtime can have a significant impact. I think what we have is completely relevant for transportation. The digital thread connecting project management, asset lifecycle management, and then the service of that asset is quite unique to us. We do that thread better than anybody else. It allows for a seamless flow of information, ensuring that organisations can manage their assets more effectively throughout their lifecycle.

LB: How important is dynamic planning in these industries?

MR: It’s incredibly important. If an organisation can adapt its capital investment plans dynamically, the flexibility it gains will help it respond to changing conditions and optimise resource allocation effectively. If you look at a fleet of trucks, for example, and think about the maintenance cycles of those, and whether you’re going to buy 10 more diesels or five more hybrids… That’s where tools like Copperleaf can really empower you to make a logical decision. You’ve got a track record of it, and can say you made this decision because this is what we balanced and these were our strategic objectives. Regulated industries love this technology, because they can see the decision making process and the logic. But that logic is just good business.

LB: What role does environmental responsibility play in your work?

MR: Reducing carbon footprints is becoming a priority for many companies. Our technology helps organisations align with ESG goals, allowing them to track and improve their environmental impact. With our modules and the focus that give to that, you are able to see the tangible costs of making a decision, or embracing a regulation, or process, or making a change in the business model. It requires us to move investment cycles, but the return is clear and that’s really impactful, especially when managing huge capital investments and projects.

LB: How do you address concerns about integrating AI into the workforce?

MR: History shows that technological advancements often lead to higher-value job opportunities, even if there’s initial resistance. It’s crucial to communicate the benefits of AI and how it can enhance the working environment. I remember there was a lot of concern a few years ago when we were talking about IoT and how an earlier version of AI was going to disrupt and change the job market. Twenty years before that, the concerns were the same, but the technologies have been adopted and moved on. Moving people up scale is a good thing, but it takes time to get there.

LB: Can you give an example of AI technology improving operational efficiency?

MR: In logistics, we optimise fleet maintenance by scheduling around electric vehicle charging capabilities. This not only improves efficiency but also helps organisations make informed decisions about their fleet investments. A lot of large organisations are probably ignoring at the moment the fact that there’s a massive cost for the time vehicles spend charging. So scheduling routes around where you stop and charge is a big part of what we can do for those large fleets. At the bigger picture level, we help select a technology before you buy that new fleet of trucks, for example looking at the positive impacts of the decision from an environmental perspective versus the cost.

LB: What do you see as the future for AI in asset-intensive industries?

MR: I believe the future will see even greater integration of advanced technologies, allowing for better asset management, enhanced decision-making, and improved operational efficiency across various sectors.

You’ll be glad to hear I wasn’t just sitting in a conference room for two solid days; an excellent exhibition by some of IFS’s partners was a welcome opportunity to see how AI technology is being applied across multiple sectors. And, more importantly, I had a personalised baseball cap stitched for me and I got to see close-up just how ugly today’s IndyCars have become. You may also be interested to hear that your editor’s week was ruined by an ill-fated decision to ride on the Jurassic World VelociCoaster, an experience that served to remind me I broke a promise I made to never go near such a ride after a similar stomach-emptying experience at the Great Yarmouth Pleasure Beach in 1974. Maybe one day, AI will spare me from such horrors!

similar news

IFS releases Autumn update of IFS Cloud

 

Subscribe

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