Aviation Decarbonization via Sustainable Fuel

DHL Express and World Energy, a leading SAF (sustainable fuel) producer and low-carbon solutions provider, have signed a long-term strategic agreement to accelerate the decarbonization of aviation logistics through the purchase of approx. 668 million litres of Sustainable Aviation Fuel via sustainable aviation fuel certificates (SAFc). The seven-year contract, to run through 2030, is one of the longest and largest SAFc agreements in the aviation industry to date.

The agreement is expected to reduce approx. 1.7 million tonnes of carbon dioxide emissions over the aviation fuel lifecycle – this is equivalent to handling the approximately 77,000 annual aircraft movements of DHL Express in the Americas carbon neutrally for a full year. The milestone agreement is further testament to DHL Group’s ambitious Sustainability Roadmap, which includes the goal to reduce the Group’s annual greenhouse gas emissions to below 29 million tonnes CO2e in 2030 across scopes 1, 2 and 3.

“DHL Express is firmly dedicated to pioneering a sustainable future in aviation logistics; said John Pearson, CEO DHL Express. By partnering with World Energy and confirming this milestone agreement, we are taking another concrete leap towards minimizing our carbon footprint and contributing to a more sustainable future. We want to inspire more suppliers to accelerate industry-wide production and adoption of SAF.”

“We are honoured to team up with DHL on this quest to decarbonize aviation,” said Gene Gebolys, World Energy CEO. “Decarbonizing the hard-to-abate sectors requires commitment across the value chain, and partnerships like the one we are launching today are key to enabling companies like DHL to meet their ambitions climate goals.”

Transparency and accountability with Book & Claim

With SAFc, the fuel’s environmental attributes are separated from the fuel itself using a “Book & Claim” chain of custody model. The Book & Claim approach enhances transparency and accountability of sustainable fuels by ensuring that the emission reductions associated with each credit are accurately transferred and verified by a third party. It allows DHL Express to purchase SAFc, utilize the associated emission reductions, and extend the environmental attributes to its customers through the GoGreen Plus service.

SAFc delivered through Book & Claim also helps to minimize both logistical costs and emissions as the fuel does not need to be shipped around the world. This helps make SAFc the most efficient way to decarbonize aviation. All of World Energy SAFc for DHL will meet rigorous sustainability certification standards from the Roundtable on Sustainable Biomaterials (RSB). In addition, all volumes will be traced through an independent registry to ensure traceability of claims related to SAFc. The fuel itself will be supplied to Los Angeles area airports, close to World Energy’s production facility in Paramount, California.

DHL Supply Chain Invests in Latin America

In view of the global trend of omni-sourcing, DHL Supply Chain, the world’s leading logistics company and part of DHL Group continues its strategic investments into emerging markets and fast-growing economies. Today, DHL Supply Chain announces a landmark investment of €500 million into the strategically located Latin American markets. These investments made until 2028 are supposed to strengthen DHL’s operations in Latin America. Projects include decarbonizing the domestic fleet through greener alternatives; building, developing and retrofitting its real estate assets and warehouses in the market; as well as significant investments into new technologies, robotics and automation solutions intended to improve workplaces whilst at the same time making operations more effective, flexible and resilient for customers. The investment is part of DHL Supply Chain’s strategic investment plan to further strengthen logistics capabilities in high-demand sectors, such as: Healthcare, automotive, technology, retail, e-commerce, among others.

Oscar de Bok, Global CEO of DHL Supply Chain (pictured) said: “Companies all around the globe are looking for more diversified sourcing and supply chain strategies by bringing stock points closer to their production and sales markets. Therefore we see increasing demand for logistics support in Mexico, Brazil and the other strategic markets in Latin America. That trend of investing in multiple source points closer to the large sales markets – which we call omni-sourcing – helps industry customers to build more resilient, robust and flexible supply chains to better cater to the needs of their end customers. That is why we are strategically investing in our logistics infrastructure in Latin America and those geographies that are strategically located and equipped to play a vital role in global trade.”

With the investment into its Latin America infrastructure the DHL Supply Chain is now complementing a long-standing history of strategic investments, acquisitions, and partnerships in the region. Not only the geographical proximity to large consumer markets in North America make the region a springboard to accelerate further growth, it is also the regions own booming sales markets which make it attractive for industries to invest and therewith request additional logistics support.

Agustin Croche, CEO in DHL Supply Chain Latin-America said: “At DHL Supply Chain we are fortunate to be an essential part of daily life; we are more than 40,000 people in this region and each of us is a unique link that contributes positively to the industry, supporting each of our clients with whom we always seek sustainable growth and long-term relationships. This is THE moment for Latin America, and we must take advantage of it.”

Following the announcement of the investment by Oscar de Bok and Agustin Croche, DHL Supply Chain Mexico also inaugurated a new Centre of Excellence for Electric Vehicles, with the participation of Mario Rodríguez, President of DHL Supply Chain in Mexico and Fathi Tlatli, Global President of the Automotive Sector for DHL Customer Solutions & Innovation. The mission of this new EV center is to provide synergy to the automotive industry in the region.

With more than 240 locations, the company has increased its operation in the region. In Brazil, for example, it recently announced the expansion and modernization of its Distribution Centre located in Goiás, while expanding its operations and presence in Extrema Minas Gerais for various clients and sectors such as the Pharmaceutical and Retail Fashion.

On the other hand, in Chile DHL Supply Chain has announced its new Distribution Centre in Pudahuel, while in Mexico, where demands are high due to the trend of bringing supply nearer to the North American sales markets, the company has expanded its presence with new warehouses. in Tijuana and Monterrey, as well as a new campus in the State of Mexico that will serve the e-commerce, retail, fashion, consumer, medical devices, aerospace, electronics, and automotive sectors mainly.

Life Sciences & Health Care | End-to-end traceability

With a robust portfolio made up of digitalization initiatives, standardized and sustainable logistics solutions and a deep understanding of regulatory frameworks in Latin America, DHL Supply Chain is at the forefront of end-to-end solutions with operational excellence for both temperature-controlled medicines, medical devices, and clinical trials, among others. In addition to the specialized distribution centres in Brazil, the company particularly has a fleet of 500 vehicles that serve this sector. In Mexico, during the third quarter of 2022, DHL Supply Chain acquired NTA, a company focused on logistics services for the pharmaceutical industry.

Commitment to sustainable and diverse logistics

The DHL Group has a clear sustainability roadmap aiming for a zero emissions operation by 2050. With investments of up to €7 billion in the period of 2020 – 2030 the group on an ambitious road towards achieving that goal. This has triggered a number of actions and investments made by the company in the Latin American countries be it the new electric, hybrid and biogas vehicles, with a fleet of close to 200 units, in addition to solar panels, energy management and recycling programs in its Distribution Centres.

In terms of diversity and inclusion, and with the objective of closing the gender gap in the logistics sector, among its inclusion programs, DHL Supply Chain has launched the Women at the Wheel Program in both Brazil and Mexico, where women drivers are who drive part of the company’s electric fleet, thus marking a new way of operating in these markets.

DHL Introduces Volvo Electric Tractor Units

DHL Supply Chain today announces the introduction of the UK’s first fully electric Volvo heavy duty tractor units. The four Volvo FM electric trucks are designed for high-capacity deliveries operating at 40 tonnes and directly replace diesel vehicles on a range of activities.

Featuring Volvo’s largest 540kWh battery which provides 666hp, the zero-emissions trucks have a range of up to 300km/180 miles, allowing them to complete full round-trips servicing DHL’s retail and automotive customers across the UK.

Saul Resnick, CEO DHL Supply Chain UK & Ireland, DHL Supply Chain said: “Today marks an important milestone in our journey towards alternative fuel vehicles. The size and capability of these trucks make them a truly viable alternative to diesel as they fully meet our needs and those of our customers. Following our introduction of the UK’s first 16-tonne rigid electric truck in late 2020, we’re proud to continue to lead the way in electric commercial transport.”

The new trucks share the same controls and very latest safety features seen on conventional diesel Volvo FM vehicles, making the transition for drivers as safe and easy as possible. Early feedback from drivers has been extremely positive, especially with regard to acceleration and hill performance. The investment in industry leading vehicles reflects DHL’s commitment to ensuring its fleet is best in class and offers the highest levels of service to its supply chain customers, as well as reflecting DHL’s own ambitious Go Green agenda.

DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialised solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 94 billion euros in 2022. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve net-zero emissions logistics by 2050.

Temperature-controlled Trailers for Biscuits

DHL Supply Chain today announces the introduction of 32 new temperature-controlled trailers to its Burton’s Biscuits fleet, each fitted with Carrier Transicold Vector® HE 19 units. The new units were specified by DHL and will support its GoGreen plan with fuel and energy savings, while increasing the efficiency of the Burton’s Biscuits operation.

The 32 new units replace older assets and combine all-electric technology with a new multi-speed engine design, delivering up to 30% fuel savings over the previous model. The system’s fully hermetic scroll compressor and economiser provide a 40% increase in refrigeration capacity during temperature pull-down, as well as a 50% reduction in refrigerant escape, saving energy across the renewed fleet.

When plugged into the electrical grid on standby, the new system is also 19% more efficient, translating into reduced diesel, maintenance and electricity costs. In addition, the units significantly reduce sound pollution.

DHL Supply Chain is a long-standing strategic partner of Burton’s Biscuits, supporting the business’ international and domestic growth. DHL will operate the new trailers from Burton’s Biscuits sites in Llantarnam, South Wales and its central distribution hub in Liverpool, delivering across the UK.

Temperature-controlled Trailers

Bob Naylor, Vice President, Core Transport, DHL Supply Chain, says: “We are committed to continually improving the service we provide to our customers, investing in innovative solutions and enhancing operations for their benefit. By introducing these new units into the Burton’s Biscuits fleet, we’re supporting both our internal sustainability agenda and that of the customer through reducing fuel consumption, with 30% savings.”

Des Bull, Customer Supply Chain Director at FBC Companies which owns Burton’s Biscuits, says, “As a business we are always looking at how we can limit our environmental footprint in our operations, and the diesel and energy savings our fleet is making by replacing existing trailers with these new models is one of the steps forward towards this. The new units also deliver strong efficiency benefits, particularly in their improved cooling capacity, and we’re delighted by the advancements they’re providing.”

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