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Tag: Maersk

Alternative Fuel Developments

Posted on by David Priestman

For distribution operations on sea or land, by far the biggest daily cost is fuel. Added to this is the pressure to go green for very many reasons, writes Richard Shepherd-Barron.

The use of alternative fuels to fossil-derived products across a wide range of logistics applications continues to increase as companies move forward into more environmentally friendly operations with zero or low emissions – electricity, hydrogen, compressed natural gas (biomethane) or methanol.

Now that many retailers have rigorous sustainability policies, this means that they will be seeking out and then favouring ‘green’ partner companies over their less sustainable competitors. An example this is the introduction by Maersk of the fifth ship in a series of 18 large dual-fuel methanol vessels scheduled for delivery from last Autumn through 2025. The ‘Alexandra Maersk’ (pictured) – 47,700 tonnes and 16,592 TEU – was named in a ceremony at Felixstowe last October. These new methanol-enabled ships are at the core of Maersk’s ambitious decarbonation plans as low emission methanol can reduce the greenhouse gas (GHGH) emissions by 65 to 90 per cent.

A major user of Maersk’s services is the well-known British and international retailer Primark, which employs more than 80,000 people across 17 countries. Their CEO, Paul Marchant, said during the naming ceremony: “We’re committed to reducing the impact we have on the environment across our entire operation, including our supply chain. Through our partnership with Maersk we’ve started to introduce green fuel alternatives when shipping our products by using Maersk’s ECO Delivery Ocean product and replacing fossil fuels with green fuel alternatives, we’re reducing our greenhouse gas (GHG) emissions in our ocean shipping.”

On a rather different scale, Carisbrooke Shipping, based in the Isle of Wight and Rotterdam, operate 26 vessels between 5,000 and 17,000 tonnes in European waters. Natalia Walker of Carisbrooke explained: “We’re part of a consortium, led by Carnot Ltd, which has been awarded £2.3 million to deploy its 70% efficient 50kW marine hydrogen engine to provide auxiliary power on a general cargo vessel. The project will explore how hydrogen can be used to generate electrical power on board cargo vessels. The demonstrator vessel – the ‘Kathy C’ (4,151 tonnes) – is a UK-flagged general cargo vessel designed to carry multiple types of dry cargo from grain to aggregates and is scheduled to undergo real-world testing this year.”

The Carnot 50-kW engine is a precursor to 200 to 400kW auxiliary engines, and eventually to 1 top 10MW main engines. The hydrogen fuel is supplied by Compass Syngas Solutions, based in Deeside, Wales, who secured almost £4 million in government funding to make its biomass and waste-to-hydrogen plants even greener by using carbon capture from its hydrogen production from waste wood and other selected non-recyclable materials.

Electric Vans

On land, many developments are taking place, very much dependent on operating requirements: Vauxhall has started customer trials with its Vivaro hydrogen van, involving some of the UK’S largest fleets. James Taylor, Vauxhall’s MD, said: “As the UK’s best-selling electric van manufacturer for the past three years, we’re already leading the way in electrifying Britain’s businesses.” To emphasise this, Royal Mail have just taken delivery of their 6,000th electric vehicle.

Marks and Spencer have introduced 85 lower emission vehicles to its fleet. Five of these are battery electric Renault 42-tonne units which will deliver to 30 M&S across London and the South East. In addition, 80 new trucks, fuelled by compressed natural gas (biomethane), will join the fleet, 50 of these being operated by Gist in its food supply chain system. Julian Bailey, Head of Group Transport at M&S, commented: “Adapting our logistics network is vital in achieving our Plan A Net Zero ambition. We’re committed to reducing carbon emissions from our transport.”

In Germany, Nippon Gas and the Hoyer Group have introduced the first hydrogen-powered truck to transport dry ice. The truck has short refuelling times and a long range, which is exactly where a battery electric truck reaches its limits. Watch this space for more fuel innovation.

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Enhancements for Warehouse Management

Posted on by David Priestman

The logistics industry is evolving at an unprecedented pace, with growing warehouse management demands and the need for exceptional accuracy becoming critical to success. To empower businesses to navigate these challenges, Dexory, a leader in robotics and data intelligence for warehousing, is therefore reshaping its flagship product, DexoryView. DexoryView will now consist of modules that allow more comprehensive data and enhanced ways of tracking warehouse health and hygiene. The first module will be known as DexoryView Integrity, which will continue to set a new benchmark for warehouse management and operational efficiency.

The logistics industry is facing a number of challenges relating to inventory visibility and inaccuracy. Stock integrity represents the foundation of a well-functioning warehouse, ensuring that inventory is in the right place, in the right quantities and in the right quality and storage conditions. Ensuring availability through an accurate and up-to-date system of record addresses critical issues that impact efficiency and profitability. It is estimated that warehouse operators lose up to 30% of their productivity and experience 15% increases in costs caused by sub-optimal slotting. Therefore, detecting misplacements to verifying quantities and conditions is of paramount importance as operators are looking to maximise their efficiencies and profitability.

The Integrity module brings together existing and new functionality that has already allowed customers such as Maerskto reduce their Warehouse Management System (WMS) errors by 15% and save 6 hours per day by quickly locating stock. It has allowed companies like Yusen Logistics to save 98 hours per month by moving to daily wall-to-wall counts.

Elevating warehouses with cutting edge technology

The DexoryView module is redefining the user experience of DexoryView, ensuring it provides even deeper analysis on the health of the warehouse through groundbreaking use of LiDAR, AI-powered image analysis and advanced object identification. These features deliver an unprecedented level of accuracy and insight into their stock, covering all key storage methods, including, pickface, block and bulk storage.

Key new features included within the DexoryView Integrity module include:

  • DexoryView Integrity includes basic inventory checks – Through the use of fully autonomous robots, DexoryView Integrity will help businesses automate their inventory checks and establish a single source of truth for warehouse tracking and efficiency.
  • Bulk and block stack volume assessment – Provides accurate item counts of non-palletised units in block stack floor locations helping operators promptly address discrepancies and maintain inventory accuracy.
  • Pick volume assessment– Provides count estimates for inventory stored in pick locations, helping operators track remaining cases and detect discrepancies, enabling exception-based pick area management with reduced risk and clear visibility on replenishment needs.
  • Pallet analysis – Identifies and tracks rental pallets, reducing costs associated with lost or misplaced assets.
  • Empty location checks – Allows businesses to determine which locations currently have no inventory, removing the need for manual checks.

These capabilities not only safeguard inventory health but also enhance workflow precision, empowering businesses to eliminate costly inefficiencies and errors. For organizations like vente-unique.com, the DexoryView Integrity has allowed the organisation to move from 92% to 98% accuracy in the matter of days. With businesses like GWC, DexoryView has allowed for an impressive 99% accuracy in tracking and identifying inventory, which has allowed the business to streamline its processes and achieve significant cost savings.

“By driving innovation, we enable warehouses to operate with greater precision and efficiency,” says Andrei Danescu, CEO and Co-founder at Dexory. “This next level of functionality empowers businesses to make smarter, data-driven decisions while reducing disruptions and enhancing operational performance. With the new capability from DexoryView, we are committed to addressing the most pressing challenges our customers encounter. There will be more announcements in the near future about other additional functionality.”

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Drones use RFID for Warehouse Inventory Management

 

Drones use RFID for Warehouse Inventory Management

Posted on by David Priestman

Verity has collaborated with On and Maersk in a drones pilot project to bridge the gap between the physical and digital supply chain environments by augmenting Verity’s autonomous inventory tracking system with radio frequency identification (RFID) capabilities.

The pilot explores the potential of RFID technology and autonomous drones to enhance inventory visibility in one of On’s warehouses. Verity, On, and Maersk shared a vision for this project: to enhance inventory visibility in supply chain to unprecedented levels, near operational omniscience. The fusion of RFID, AI, and fully autonomous embodied AI agents for inventory tracking is addressing long-standing visibility challenges and creating fully transparent and efficient operations for operators and retailers alike.

Verity’s AI-driven, vision-based system delivers high-value inventory insights in more than 100 warehouses globally, in collaboration with various warehousing operators. With agile drones, unmatched reliability, and seamless scalability, Verity advances inventory methodologies. One limitation, however, has been tracking inventory beyond line of sight — until now. By integrating RFID, Verity extends its vision inside and beyond boxes, enabling precise tracking and identification of individual items, such as products and packages, at every stage of the warehouse lifecycle, realizing the promise of a true warehouse digital twin.

The Verity drones, augmented with RFID, autonomously navigate warehouse aisles, scanning RFID tags with over 99.9% accuracy at rates of up to 1,000 tags/items per second. The system enables seamless and efficient RFID tracking throughout warehouses without the need to redirect workflows, overcoming the challenges of traditional methods.

Traditional RFID systems, though commonly used for traceability, face notable challenges in warehouse environments. To remain scalable, RFID tags or other passive emitters must stay inexpensive, which limits their range. This constraint necessitates readers to operate within close proximity, leading to the widespread adoption of bottleneck solutions such as gates. In the fast-moving world of supply chains and warehousing, true visibility requires a mobile, agile, and autonomous reader — something Verity has delivered in the pilot with On and Maersk.

“On is an innovation company at heart, and we are excited to push the boundaries of what’s possible in logistics through this pilot project with Verity and Maersk,” said On co-founder Caspar Coppetti. “This exploration of cutting-edge solutions allowed us to test and evaluate new ways to enhance efficiency and transparency in our supply chain”.

Key testing milestones

To date, the collaboration between Verity, On, and Maersk to test the RFID-enabled embodied AI has achieved several significant milestones:
● The tests were conducted at a Maersk facility in California to evaluate the system in a high-volume, real-world warehouse environment.
● The testing phase spanned three months to validate the system’s performance for client-specific and wall-to-wall inventory counts.
● Over 1,500 flights completed during the testing period.
● More than 80 million RFID reads performed, covering approximately 1.25 million individual tags.

“At Maersk, we are committed to leveraging advancements in logistics through cutting-edge technology,” said Jason Walker, Head of Maersk Contract Logistics, North America. “The exploration of RFID-enabled drones in our warehouses is a testament to our dedication to innovation and operational excellence. Importantly, this technology enhances the capabilities of our team, empowering them to focus on more strategic tasks and drive continuous improvement.”

The early use of the new, RFID-augmented Verity system has uncovered the following integration for this technology in warehouse operations. The system is able to detect tags at a rapid rate, with an estimated productized reading speed of up to 1,000 tags/items per second. This allows for precise identification of each item with a 99.9% success rate. Furthermore, the technology enables Verity to precisely localize each tag in the warehouse. This unlocks the tracking of items throughout the warehouse lifecycle, opening visibility capabilities that are unheard of.

An innovative approach for continuous improvement in operations

Integrating RFID technology into autonomous inventory operations is a significant step for Verity toward creating a comprehensive, data-agnostic intelligence system for warehouses. This innovation provides clients with a holistic view of inventory management, delivering unparalleled insights and control. “By fusing AI, autonomous data collection at scale, and RFID, we are bridging the gap between the digital and physical worlds to deliver complete visibility across supply chains,” said Verity CEO Raffaello D’Andrea.

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Maersk Opens Advanced Fulfillment Center for Levi Strauss

Posted on by Will Priestman

In a strategic move to enhance its logistics and distribution capabilities, Levi Strauss & Co. has partnered with Maersk to open a omnichannel fulfillment center in Groveport, Ohio with state-of-the-art 1.2-million-square-foot. This facility, which started operations in August, is designed to streamline Levi’s supply chain across its wholesale, retail, and e-commerce channels, allowing the iconic apparel company to increase speed, efficiency, and on-time performance.

The facility’s advanced services include end-to-end logistics solutions, from origin consolidation to omnichannel fulfillment. Maersk’s Warehouse Management System will play a key role by offering real-time inventory visibility and allowing Levi’s to adjust production on the fly, further optimizing operations. The location will also serve as a training hub, ensuring continuous improvement in operational standards.

Maersk Opens Advanced Fulfillment Center for Levi Strauss

A key feature of the Groveport facility (pictured left) is its EuroSort system, which supports batch picking, enabling warehouse pickers to gather multiple orders in one trip. A Maersk spokesperson explained the technology’s impact: “It’s a proven solution for sorting apparel, operating at high speeds, and can process up to 28,000 products per hour and handle up to 100 million units per year.” The system also includes capabilities for automatically handling leftover cartons, reducing the manual workload for pickers and enhancing overall operational efficiency.

The first of two EuroSort systems is already 70% installed, with the second expected to be operational by November. The entire setup is projected to go live in early 2025. These advancements in technology allow Levi’s to focus on a direct-to-consumer-first (DTC-first) business model, with faster, more accurate fulfillment processes.

Levi Strauss’ decision to collaborate with Maersk comes after the company announced its plans to shift away from a primarily owned-and-operated logistics network in the U.S. and Europe. Instead, Levi’s is leaning on third-party logistics services (3PL) like Maersk to reduce fulfillment costs while still maintaining high service levels. Craig Jones, Levi Strauss’ Senior Vice President of Global Distribution and Logistics Operations, highlighted this approach: “This Maersk-designed and operated facility is an important step in our strategy to transition to a hybrid distribution and logistics network that balances omni-capable owned-and-operated facilities with technologically advanced 3PL facilities like this one.”

The Groveport center marks the tenth global facility that Maersk operates for Levi Strauss, with other centers mostly located in Asia. As Levi’s continues to evolve its distribution strategy, the partnership with Maersk highlights the retailer’s commitment to embracing cutting-edge technology and efficient logistics to meet the growing demands of the modern retail environment.

Levi Strauss’ shift towards leveraging 3PL providers like Maersk reflects a broader trend within the retail industry, where companies are increasingly focusing on cost-effective and technologically driven solutions to meet consumer expectations for fast and seamless omnichannel experiences. This new fulfillment center will allow Levi’s to continue scaling its operations while maintaining a competitive edge in the global apparel market.

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Maersk Unveils Middle East’s Largest Logistics Park

Posted on by Will Priestman

A Major Milestone for Maersk and Saudi Arabia

On August 22, 2024, Maersk, the global leader in integrated container logistics, marked a significant achievement by inaugurating its largest logistics park in the Middle East, located at Jeddah Islamic Port, Saudi Arabia. This state-of-the-art facility, sprawling over 225,000 square meters and developed at a cost of $250 million, is a cornerstone of Maersk’s ambitious strategy to bolster its logistics capabilities in the region. It aims to meet the growing demand for efficient, integrated supply chain solutions across the Middle East.

Strategic Location and Comprehensive Services

The park’s location at Jeddah Islamic Port, one of the busiest and most strategically important ports in Saudi Arabia, underscores its critical role in the region’s logistics landscape. The facility is designed to serve as a hub for a wide range of industries, including retail, automotive, technology, and pharmaceuticals. It offers a comprehensive suite of services, from multimodal transportation options to temperature-controlled warehousing, ensuring that businesses can efficiently manage their supply chains from a single, centralized location. The park is also equipped with advanced customs clearance capabilities, which will streamline the movement of goods and reduce lead times, further enhancing the efficiency of regional and global trade.

Sustainability at the Heart of Operations

A defining feature of Maersk’s new logistics park is its strong emphasis on sustainability. In line with the company’s global commitment to reducing its environmental impact, the facility incorporates several eco-friendly initiatives. Notably, 70% of the park’s energy requirements are met through a large solar panel array, significantly reducing its carbon footprint. Additionally, the park employs electric-powered equipment and vehicles for its operations, minimizing emissions and contributing to a greener supply chain. These initiatives are not only beneficial for the environment but also align with global trends towards more sustainable business practices, positioning Maersk as a leader in the green logistics movement.

Supporting Saudi Arabia’s Vision 2030

The opening of this logistics park is closely aligned with Saudi Arabia’s Vision 2030, an ambitious blueprint aimed at diversifying the Kingdom’s economy and reducing its dependency on oil exports. By enhancing the logistical infrastructure at Jeddah Port, Maersk’s facility is set to play a crucial role in facilitating trade, attracting foreign investment, and boosting economic growth in Saudi Arabia. The park is expected to support the development of local industries, create job opportunities, and contribute to the overall modernization of the Kingdom’s logistics sector.

Strategic Importance for Global Trade

As global supply chains continue to evolve, the need for integrated and efficient logistics solutions has never been more critical. Maersk’s new logistics park in Jeddah is a testament to the company’s forward-thinking approach and its commitment to addressing the complex demands of modern logistics. The facility’s strategic location at Jeddah Port, combined with its cutting-edge capabilities, positions it as a key node in the global supply chain, facilitating the seamless movement of goods across the Middle East and beyond.

By establishing the largest logistics park in the Middle East, Maersk is not only reinforcing its presence in the region but also contributing to the broader global trade ecosystem. The Jeddah Islamic Port is already a vital gateway for trade, and with the addition of this advanced logistics facility, it is poised to become an even more critical hub for businesses looking to optimize their supply chains.

The inauguration of Maersk’s logistics park at Jeddah Port marks a significant advancement in the Middle East’s logistical capabilities. This development not only strengthens Saudi Arabia’s position as a regional logistics leader but also underscores Maersk’s commitment to sustainability and innovation in global trade. As the facility begins operations, it is expected to play a pivotal role in driving economic growth, supporting Vision 2030, and enhancing the efficiency of supply chains across the Middle East and beyond.

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The Environmental Impact of Freezing Goods at -15°C

Posted on by Will Priestman

At the Multimodal 2024 conference, Dirk Hoffmann from DP World highlighted an innovative approach to reducing carbon emissions within the logistics and supply chain sector: freezing goods at -15 degrees Celsius instead of the industry standard of -18 degrees Celsius. This seemingly minor adjustment could yield significant environmental benefits, akin to removing millions of cars from the road. Echoing this sentiment, David Brown, Director at MAERSK, stated, “We need to get to net zero, and this is an easy way to help get us there.”

The Environmental Impact of Freezing Goods at -15 Degrees

Energy Consumption and Emissions

Freezing goods at -18 degrees Celsius requires substantial energy. Lowering this temperature to -15 degrees Celsius reduces the energy needed for refrigeration. Refrigeration accounts for a significant portion of energy consumption in the food supply chain, and decreasing the temperature difference by just three degrees can lead to notable energy savings. According to Hoffmann, these savings are substantial enough to be compared to the environmental impact of removing millions of cars from the road.

Quantifying the Impact

While Hoffmann did not specify exact figures at the conference, the comparison to car emissions is compelling. The transportation sector is a major contributor to greenhouse gas emissions, with millions of cars emitting significant amounts of CO2 annually. By reducing the energy needed for refrigeration, the supply chain can significantly cut its carbon footprint. This change is not just about reducing electricity use but also about lowering the demand for fossil fuels used to generate this electricity.

The Technical Feasibility and Industry Implications

Product Quality and Safety

A primary concern when altering freezing temperatures is maintaining product quality and safety. However, studies and industry experience indicate that many frozen goods, particularly non-perishable items like vegetables, processed foods, and certain meats, can be safely stored at -15 degrees without compromising quality or safety. Adjusting the freezing temperature requires careful monitoring and possibly slight modifications in packaging and handling processes to ensure product integrity.

Cost Savings

Besides environmental benefits, there are economic incentives for businesses. Lower energy consumption translates to lower operational costs. This change can result in significant cost savings across the supply chain, from producers to retailers. Reduced refrigeration costs can also potentially lower prices for consumers, creating a ripple effect of economic benefits.

Broader Implications and Adoption

Industry Adoption

Widespread adoption of this practice would require a coordinated effort across the supply chain. Stakeholders, including food producers, logistics providers, and retailers, would need to align on standards and best practices. Educational initiatives and pilot programs could help demonstrate the feasibility and benefits of this approach.

Policy and Regulation

Governments and regulatory bodies could play a crucial role in facilitating this transition. By setting guidelines and providing incentives for reducing energy consumption in food storage, policymakers can accelerate the adoption of lower freezing temperatures.

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Sexify Logistics

Posted on by David Priestman

Red Bull’s Formula One HQ in Milton Keynes is an appropriate and impressive backdrop to learn why data is fuel in logistics. David Priestman attended Dexory’s Supply Chain Fast Track conference.

High performance in logistics can be maintained by extracting insights from data and taking practical steps. “Data itself has no value,” states Rob Smedley, former Ferrari, Jordan and Williams F1 race engineer, “insight is everything. Complexity requires having a data strategy.” Warehouses may be less glamorous than race tracks, but they are also hubs of innovation.

Polycrisis logistics

When multiple supply chain disruptive events happen concurrently how can they be tackled? “Resilience planning is key,” says Mike Fahy, CEO of Neovia, a contract logistics provider operating in 20 countries and with 80 hub facilities and 8000 employees. The 3PL specialises in service parts logistics for automotive, industrial and tech customers, formerly being Caterpillar Logistics Services.

Fahy advises logisticians to tackle ‘polycrises’ by multi-sourcing, embracing technology and strong cybersecurity. “We’re not back to just-in-time yet, after the pandemic. We’re still at just-in-case for supply. Warehouse space is relaxing a bit, depending on the location.” Neovia use Dexory to create a ‘digital twin’ of each warehouse, providing visualization and interpretation of inventory stock. For example, the Dexory View dashboard enables pick face analysis of volumes.

Neovia use other tech, like Protex AI’s warehouse CCTV system, which reduced safety incidents by 80%. “New tech creates disruption,” Fahy emphasises, “being part of change is key.” He also praised Athingz – an autonomous supply chain service utilising machine learning to aid sales inventory optimisation, planning and execution. Real-time analytics with a virtual control tower helps forecasting freight lanes, both inbound and outbound. Extended reality, or VR, is used by Neovia for training, using tech from Elm Park Labs. Apple’s Vision Pro is tipped by Fahy to become a handy tool.

Supply chain design, of the number and location of distribution centres, leads to a tech-based materials handling approach. Simulation can be used prior to construction to study the average flow, slow days and peak operations. “Maximising cubic optimisation is key,” according to Fahy, and robotics is paramount. His company are piloting self-driven HGV lorries, remote driving of warehouse reach trucks and remote monitoring of assets.

Visibility gap

Only 6% of supply chain managers claim to have full global visibility. Gaps can lead to out-of-stock or over-stocking issues. The distribution centre is where some visibility is lost, due to damage, loss, theft or errors that occur. The visibility gap is an intelligence gap. An estimated 6500 hours per year can be spent on stock checks for a typical DC, say Dexory. Starting accuracy for their customers is 91-95%, with 24 minutes on average taken to resolve discrepancies. Dexory’s solution claims to increase accuracy to over 99%, which is better than warehouse drones can achieve.
GE Appliances are one of many manufacturers using temporary, overflow warehouses. “That can make it harder to maintain accuracy,” Harry Chase, GE Senior Director for Central Materials, says. “The quality and timeliness of data is crucial.” Dexory can be used for better slotting and stock consolidation, by freeing-up space and identifying bottlenecks.

Machine help?

Generative AI may create new strategies in logistics, for example in transport routing. Chris Coote of Dexory says AI is less intuitive than a human but provides fast answers and concepts. “Embrace limitless possibilities to build a smarter, safer ecosystem in the DC,” he exhorts.

Wincanton, a 99 year-old British third party logistics operator with 21000 staff, are in the process of being acquired by CEVA Logistics, part of the giant French shipping line CMA CGM. Paul Durkin, Chief Customer and Innovation Officer, has a practical view of robotics and automation. Companies should invest in tech, he argues, because labour costs are rising, automation costs are falling and there is a demand for short lead times in logistics. “There’s no longer a long payback time for this equipment,” he says, looking for a 20% return of capital deployed.

The downsides to such investment are the interest on capital expenditure, competing demands for investment and the proliferation of software and hardware, which makes it difficult to be certain what to purchase. “Retail customers spend on their ‘front of house’ (shops and stores). We’re ‘back of house’,” adds Durkin. Wincanton has re-organised itself to lean towards IT and technology, seeing 3PL as a service. Owning the IP of software in-house is important for the company. “We can’t rely on being an asset-based business, with just trucks and sheds,” he adds. Automation can solve customer problems. “Commercialize it. Value creation leads to long-term success.”

Industrial collaboration is a good thing, according to Durkin, who was speaking on the day the CEVA deal was being finalised. “There’s room for it. Warehouses haven’t evolved that much. We all need to accelerate our journey and get slicker. Wincanton need 30 upgrade projects a year, but only have the bandwidth for half that.“

Generation logistics

Getting the organization’s design right is key. “Size isn’t everything. Start small with automation and robotics, get used to it, be prepared to fail,” he advises. Wincanton work with smaller, nimble suppliers, including Dexory. “Now we have proof-of-concept on-site we can invest further. There are no guarantees, but we have created headroom.”

Automation and robotics can inspire colleagues and attract young people into the sector. It can lead to upskilling of existing staff. ‘Generation logistics’ is a slogan aimed to elevate the industry, make it sexier. New entrants to the market, like Hived and everstox, backed with venture capital by investors including Maersk, are on a fast track, fuelled by data to innovate and increase competition in logistics. Our industry is en vogue. Make hay and rejoice.

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Tanger Med Port Surpasses 8m TEUs

Posted on by Keith McKinley

In 2023, Tanger Med Port processed 8,617,410 TEUs (Twenty-foot equivalent), marking a growth of 13.4% compared to 2022. This remarkable achievement, equivalent to 95% of the port’s nominal capacity, was accomplished 4 years ahead of targets.

The outstanding performance is attributed to the successful operations of terminals TC1 and TC4, managed by Maersk-APM, and the continuous development of terminal TC3, operated by Tanger Alliance (A joint venture owned by Marsa Maroc with a 50% stake, in partnership with Eurogate holding 40% and Hapag Lloyd holding 10%). Additionally, 2023 witnessed record productivity levels, surpassing monthly peaks of 800,000 TEUs handled.

RO-RO TRAFFIC ON THE RISE

In 2023, 477,993 trucks were processed, representing a 4.1% increase from 2022. Industrial product traffic saw a significant surge of 14.3% compared to the previous year, offsetting a 7.7% decrease in agribusiness product traffic.

INCREASE IN NEW VEHICLE TRAFFIC

The two vehicle terminals in the port complex handled 578,446 vehicles in 2023, reflecting a 21% increase from 2022. This traffic primarily includes 341,758 vehicles for export, produced by Renault factories in Melloussa and SOMACA in Casablanca, along with 176,208 vehicles exported by the Stellantis plant in Kénitra.

RISE IN SOLID AND LIQUID BULK TRAFFIC

Liquid bulk traffic experienced a 6% growth compared to 2022, a total of 9,838,157 tons of handled hydrocarbons. Simultaneously, solid bulk traffic witnessed a 44% increase from the previous year, totalling 581,042 tons processed.

PASSENGER TRAFFIC: RETURN TO NORMAL

In 2023, Tanger Med Port Complex welcomed 2,700,747 passengers, marking a 30% growth from 2022. This traffic has returned to pre-COVID-19 crisis levels.

GLOBAL TONNAGE: SUBSTANTIAL GROWTH

Tanger Med Port Complex handled 122 million tons of goods in 2023, reflecting a 13.6% increase from 2022, with 21% in Import/Export. This recorded global traffic is highest at the Strait of Gibraltar and across the Mediterranean. This traffic also represents more than half of the total tonnage handled by all ports in Morocco.

MARITIME TRAFFIC ON THE RISE

In 2023, a total of 16,900 ships called at Tanger Med Port Complex, marking a 17% growth from 2022, including 1,113 mega-ships (over 290 meters), representing a 16% increase from the previous year. Tanger Med remains firmly focused on the future, ready to face new challenges and strengthen its position as a major logistics hub in Morocco and the Euro-Mediterranean region.

New Patent for Warehouse Storage Optimization

Posted on by David Priestman

Fabric, a technology company for retail fulfillment, today announced it has secured a new patent for its innovative multi-tote size automated storage and retrieval system (ASRS). This first-of-its-kind technology enables the storage of multiple varying tote sizes within the same shelving unit, optimizing warehouse efficiency.

Fabric’s ASRS is the only automated warehouse system capable of handling multiple tote sizes in one shelving unit. This flexibility allows companies to optimize their use of space, especially in micro-fulfillment centers (MFCs) in smaller local areas or within the confines of their retail stores. By storing large and small products in the same location, businesses can accommodate a broader range of SKUs, avoid wasted capacity and minimize their storage footprint.

“The growth in e-commerce is fueling pressure on retailers to expand inventory selection while keeping logistics costs low,” said Ori Avraham, Fabric’s VP Product and co-founder. “Fabric is the only automated fulfillment solution offering the technology that accommodates different tote dimensions in a single storage system so businesses can maximize inventory density, reduce operational expenses and scale to meet growing demand.”

A key element in warehouse management is the ability to utilize vertical space effectively, maximizing storage capacity. In an automated system, each tote can hold either one SKU or a few, but each SKU must be stored in a separate bin within a tote to ensure precise tracking of product locations and quantities.

When dealing with diverse SKU sizes ranging from large toilet paper to small mascara, being limited to a single tote size results in wasted storage space, effectively holding nothing but air. With the ability to use different tote sizes, which can be stored freely in multiple locations, the multi tote size ASRS opens a huge opportunity for ‘smart stock management’ algorithms and ultimately denser storage. This allows companies to streamline their operations, stock a wider range of products and adapt to changing customer demands without costly and space-consuming modifications.

Fabric‘s latest patent builds upon the company’s previous patent portfolio of unique topology and robotic technologies that equip retailers with tools to stay ahead in the rapidly evolving e-commerce market. The new multi-tote size ASRS is available to customers today.

Earlier this year, Fabric also announced a collaboration with Maersk, which now uses a 38,000-square-foot automated fulfillment center in Dallas powered by Fabric’s advanced robotic and software technology.

Red Sea Attacks – Maersk/BP Pausing Shipments

Posted on by Keith McKinley

There have recently been many stories in the media about shipping firms pausing Red Sea journeys over attacks. For example, the Danish shipping company Maersk has said it is pausing all journeys through the Red Sea. The decision comes after a spate of attacks on vessels launched from a part of Yemen controlled by the Houthis – an Iran-backed rebel movement.

Additionally, BP has paused all Red Sea shipments after rebel attacks, and there are fears of higher oil prices after Red Sea attacks are predicted and the effect on global trade.

In response to this story and these developments, Captain Steve Bomgardner, VP Commercial Markets, Pole Star Global, comments:

“The cost of shipping raw materials or finished products via maritime routes might be affected by decisions made months or years earlier, such as long-term contracts, fuel pricing agreements, or investments in shipping infrastructure. The maritime industry often operates on extended timelines due to the nature of shipping contracts and the time it takes for vessels to move across oceans. Therefore, pricing dynamics in the maritime sector may not always align with immediate events but could be linked to earlier decisions and circumstances.”

Captain Steve Bomgardner (pictured) is a seasoned industry leader with a diverse 20-year background in the maritime industry and green-technology space. Prior to Pole Star he led global commercial development for SailPlan, a maritime green-tech start-up; where he shaped the company’s go-to-market strategy and sales efforts. Captain Bomgardner also serves as a dedicated member of the Board of Directors for Eyesea, a non-profit organization at the forefront of mapping global maritime pollution and debris.

Before SailPlan, Captain Bombgardner held influential positions with two renowned ship registries, the Bahamas Maritime Authority (BMA) and the Liberia International Ship & Corporate Registry (LISCR). During his tenure, he took charge of operations in the Americas and played a pivotal role in establishing and overseeing a new Offshore and LNG division at LISCR. Before venturing into ship registries, Captain Bomgardner devoted the initial 15 years of his career to managing operations in the demanding Offshore Drilling Industry. His expertise was honed aboard some of the industry’s most technologically advanced vessels. Captain Bomgardner holds an MBA from Georgetown University, and a BS degree from Texas A&M University.

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