Kuehne+Nagel and Mercedes-Benz have reached a significant milestone in their sustainability efforts, saving nearly 11,000 tonnes of CO2 emissions in the past year through the use of Sustainable Aviation Fuel (SAF). This achievement is part of a strategic partnership that has been in place since 2019, focusing on decarbonising logistics for Mercedes-Benz’s US-bound supply chains.
The SAF initiative, implemented on charter flights using Kuehne+Nagel’s Boeing 747-8F cargo aircraft, has significantly contributed to reducing the carbon footprint of Mercedes-Benz’s transport logistics. Flights from Stuttgart, Germany, to Birmingham, Alabama, have been powered by SAF, marking a critical step toward Mercedes-Benz’s goal of net carbon neutrality.
Heiko Schuhmacher, Senior Vice President of Global Air Logistics at Kuehne+Nagel, emphasized the importance of this collaboration: “Our vision of becoming the most trusted logistics partner for a sustainable future by 2030 means that we take our responsibility to support our customers in reducing their CO2 emissions seriously. We are proud that this pilot project has evolved into a long-term partnership in the spirit of decarbonisation.”
Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, echoed this sentiment, stating, “Transport logistics is a key part of the automotive value chain. By using sustainable aviation fuel for air freight transport, we can reduce emissions along our value chain and take an important step towards net carbon neutrality.”
In related news, Kuehne+Nagel recently adjusted its cost-cutting program due to shifting market conditions, reducing anticipated savings from CHF 200 million to CHF 100 million. Chief Financial Officer Marcus Blanka attributed this revision to falling inflation and a more favorable market outlook. Despite these adjustments, Kuehne+Nagel has maintained its status as the world’s leading airfreight forwarder in 2023, outpacing competitors like DHL Global Forwarding.
This collaboration between Kuehne+Nagel and Mercedes-Benz not only highlights the successful application of SAF but also underscores the broader industry trend towards sustainable logistics practices.
DHL Group has reported a modest increase in revenue for the second quarter of 2024, driven by growth in air and ocean freight volumes. However, the logistics giant faced declines in profitability across several divisions amidst a challenging economic environment.
In Q2, DHL’s air freight volumes rose by 5.3% to 437,000 tons, and ocean freight volumes increased by 6.4%. Air freight revenues grew by 3.6% year-on-year to €1.5 billion, but gross profits in this segment fell by 16.9% to €245 million. The overall forwarding and freight business saw revenues edge up by 0.8% to €4.9 billion, though gross profit declined by 7.9% to €1.2 billion and EBIT dropped 28.1% to €279 million.
DHL’s performance in the air freight sector lagged behind competitors like Kuehne+Nagel and DSV, which reported higher growth rates of 7.3% and 10%, respectively. Melanie Kreis, CFO of DHL Group, noted, “Air and ocean freight volumes further improved from a low starting level. However, we are not observing a broad-based recovery of global trade yet.”
Despite the economic challenges, DHL Group’s overall Q2 revenue increased by 2.7% to €20.6 billion. EBIT was down 20.2% to €1.35 billion, and net profit attributable to shareholders fell 23.9% to €744 million. Kreis stated, “The quarter was as expected. We anticipate a tangible recovery in the world economy and thus tailwinds for our global logistics activities in the second half of the year.”
DHL’s Express division, despite achieving a double-digit EBIT margin, saw a 24.2% drop in EBIT to €683 million, with overall shipment volumes declining slightly. The Supply Chain division benefited from e-commerce and omnishoring trends, with a 2.8% increase in revenues to €4.35 billion and a slight EBIT growth to €279 million. The eCommerce division experienced a 10.5% rise in revenues to €1.67 billion, but EBIT decreased by 14.1% to €67 million due to ongoing investments.
DHL Group remains optimistic about the second half of the year, anticipating improved performance driven by peak season effects and continued focus on cost and capacity management. “Our current Strategy 2025 has carried us effectively through recent challenges, and Strategy 2030 is set to drive further growth,” concluded Kreis.
Redwood Logistics (Redwood), a leading fourth-party logistics (4PL) provider in North America, has transformed the logistics strategy for Betco, a prominent manufacturer of commercial cleaning solutions. This partnership has significantly improved Betco’s on-time delivery, enhancing customer service and satisfaction through innovative logistics solutions.
Since 1950, Betco has been a key player in the commercial cleaning industry, offering over 350 standard cleaning agents and more than 500 custom formulations to various sectors including education, food service, healthcare, retail, hospitality, and commercial cleaning. However, Betco struggled with timely deliveries to multiple high-priority contract customers, due to reliance on conventional less-than-truckload carriers, which led to costly and unreliable logistics operations.
“Our partnership with Redwood has been transformative,” said Kyle Knapp, Distribution Manager at Betco. “Redwood’s Project Logistics capabilities, including their tailored service model, have dramatically improved our service levels, cut costs, and provided us with a competitive edge.”
Redwood’s Project Logistics team addressed Betco’s delivery challenges by implementing a customized solution that includes full-truckload pickups, inventory consolidation at regional warehouses, and final-mile delivery. Real-time tracking of each load has ensured reliable delivery and increased customer confidence.
Redwood has managed numerous logistics projects for Betco, achieving a 100% on-time delivery rate while maintaining cost-effectiveness. This reliability has strengthened Betco’s reputation as a dependable partner in the commercial cleaning industry, driving higher customer satisfaction, securing new contracts, and boosting revenues.
“Redwood’s ability to adapt and meet Betco’s unique needs underscores our modern 4PL strategy,” said Erin Breen, Executive Vice President of Supply Chain Solutions at Redwood. “Our integration of logistics and technology provides significant advantages in today’s competitive logistics environment.”
Redwood’s 4PL strategy combines hands-on execution with supply chain digitalization, offering a unique approach to logistics that delivers tangible business results in a fast-paced and volatile market.
Carrier Global Corporation, through its Sensitech business, a leader in supply chain visibility, has completed its acquisition of the Monitoring Solutions division from Berlinger & Co. AG. Berlinger, a Swiss family-owned company, is renowned for its innovative solutions in monitoring temperature-sensitive goods within the pharmaceutical, life sciences, clinical trials, and global health sectors. Sensitech is part of Carrier Global Corporation (NYSE: CARR), a global leader in intelligent climate and energy solutions.
“This acquisition represents a key milestone for Sensitech, enhancing our capabilities in cold chain monitoring and visibility for the pharmaceutical and life sciences industries,” said Bhasker Kaushal, Vice President & General Manager of Sensitech and Refrigeration Aftermarket. “We are thrilled to integrate the Berlinger team into Sensitech and combine our strengths to provide more connected, automated, intelligent, and sustainable cold chain solutions.”
The addition of Berlinger’s Monitoring Solutions enhances Sensitech’s end-to-end cold chain monitoring offerings with advanced conventional and real-time monitoring solutions, as well as value-added software and analytics capabilities. This acquisition also extends Sensitech’s market reach into stationary monitoring and global health sectors.
Berlinger’s Monitoring Solutions business, which includes approximately 85 employees based in Switzerland, the Netherlands, and the United States, will now operate under Sensitech.
Global freight forwarder International Cargo Logistics (ICL) has nearly doubled the size of its cold storage facility at Heathrow Airport to meet growing customer demand.
Originally 153 sq m, the cold storage facility has grown to 300 sq m. The facility now consists of five chambers with varying temperature regimes, as well as X-ray and external temporary storage facilities (ESTF), plus temperature-controlled vehicles to transport goods across the UK.
To further streamline operations, the ICL Site Unit 13 facility boasts inspection areas for the UK Department for Environment, Food & Rural Affairs (DEFRA) and a control point for Customs checks and clearances, fur streamlining operations.
“This expansion, which comes as we celebrate our 20th anniversary this year, greatly enhances our ability to deliver high-quality logistics services from our Heathrow site,” said Nick Finbow, perishables sales director, ICL.
“Our clients from the perishables sector can now benefit from centralised, round-the-clock logistics services as well as access to an efficient and reliable national distribution network, saving them valuable time and resources while allowing for fresher products to enter the UK food chain.
“Additionally, ICL is preparing to be BRC-accredited by the end of the summer, which means we will be able to deliver to a wider range of retailers and wholesalers.”
In March this year, Heathrow-headquartered ICL announced it would collaborate with fellow UK firm FreshLinc on final-mile delivery for UK airfreight.
In February, ICL also opened a new office in Rotterdam, the Netherlands, as part of efforts to expand its perishables operations across Europe and beyond.
The company aims to further extend its global reach this year with plans to expand into Southeast Asia, starting with a new office in Vietnam.
The forwarder currently operates in over 207 countries.
US supply chain services company OIA Global has extended its European network to Ireland with the acquisition of Dublin-based multimodal freight forwarder Sandford Freight.
OIA Global said the acquisition is strategically important because Ireland is a key market for the electronics, healthcare, retail and lifestyle industries that it does business in.
Jeff Barrie, chief executive of Portland, Oregon-headquartered OIA Global, stated: “We are delighted to welcome Sandford Freight into the OIA Global organisation. The acquisition aligns with our long-term growth strategy to support our customer’s diverse networks, providing reliable local support.
“Sandford Freight has an impressive presence in Ireland, and the team has a long history of supporting the unique needs of customers in the electronics, healthcare, and retail and lifestyle vertical markets.”
Youssef Annali, chief financial officer of OIA Global, added: “This strategic acquisition enhances our competitive strength and underscores our commitment to sustained growth, network expansion, investments in growth verticals, and high-touch customer service.”
Brían Falvey, managing director of Sandford Freight, said: “Having spent the last 45 years as a privately owned and managed independent forwarder, Sandford Freight and all our valued staff are to become part of an exciting new adventure presenting many new opportunities within transportation services, contract logistics, packaging design, raw material management, and technology solutions with OIA Global, who are leaders in supply chain management.”
The acquisition now means OIA Global has a presence in 27 countries, with over 50 owned offices worldwide.
New Zealand-headquartered freight forwarding and logistics company Mondiale VGL has acquired Southeast Asia-based multimodal forwarder Interunion.
Prior to the acquisition, Mondiale VGL held an existing stake in Interunion and the two companies have partnered since 2012.
The company said it has been focused on building a global supply chain operation with its roots in Asia Pacific and the acquisition of Interunion further supports its ambitions in this area.
Interunion provides air, sea and land transportation, as well as warehousing and logistics services in Singapore, Indonesia, Malaysia Thailand and Vietnam.
“The acquisition was a logical next step for both parties and will further enhance opportunities for the customers of both organisations to access a wider network of global offices both in Southeast Asia via Interunion’s network and globally with Mondiale VGL,” said Mondiale VGL.
“The Interunion team, service offering, branch network and brand will all remain the same, and there will be no change for customers or agents on a day-to-day operational level,” added the company.
Mondiale VGL employs over 1500 staff across 56 offices in New Zealand, Australia, Asia, Europe, and the US, supported further by over 500 agency offices worldwide.
The global logistics provider Hellmann Worldwide Logistics is strengthening its commitment to sustainability by expanding its Sustainability Division. The family-owned company is proud to announce the appointments of Şükran Gencay and Daniel Hülemeyer as Heads of Sustainability. These newly established global positions underscore Hellmann’s strategic focus on sustainability, which is also reflected in the structure of its Management Board through the nomination of Stefan Borggreve since the beginning of this year. This new emphasis allows Hellmann to continue fulfilling its responsibilities and integrating sustainability across all business units globally in order to meet the challenges of the coming years in collaboration with its customers and partners.
As Head of Sustainability – Social & Governance, Şükran Gencay will lead the ongoing development and global implementation of Hellmann’s social sustainability initiatives. In this role, she will ensure that the company maintains its commitment to social responsibility. With her extensive experience in the logistics industry and through various leadership positions at Hellmann since 2020, Şükran Gencay is well equipped to take charge of the company’s social and governance goals and deepen its sustainability strategies. In her previous role as Global Head of Leadership & Culture, she successfully established and promoted a new corporate culture, a task she will continue to drive forward in her new position.
As Head of Sustainability – Environment, Daniel Hülemeyer will spearhead Hellmann’s efforts to decarbonize and integrate ecological practices across all product areas and its real estate infrastructure. His primary focus will be carbon footprint reduction, promotion of renewable energies, and fostering a culture of environmentally friendly innovations in collaboration with the newly established “Hellmann Innovation Hub”. Daniel Hülemeyer brings over twelve years of experience in sustainability topics at Hellmann and has previously led the global Quality, Health, Safety, and Environmental (QHSE) management team.
“The new sustainability organization reflects the importance of the topic for Hellmann’s strategic direction. We want to be a driving force for positive change – even beyond our company boundaries. With Daniel Hülemeyer and Şükran Gencay, we have two outstanding personalities who, together with the global teams, will turn our sustainability vision into reality,” says Stefan Borggreve, Chief Digital Officer, Hellmann Worldwide Logistics.
GEODIS, a leading global logistics provider, and L-Acoustics, the industry leader in premium professional sound, opened their new regional distribution center in Singapore. The distribution center, the first for L-Acoustics in the Asia Pacific region, is a testament to the manufacturer’s commitment to this strategic and growing market.
“Our mission is to strengthen our ties with clients, creating a hub from which we can provide ideal support,” explains Tim Zhou, CEO APAC at L-Acoustics. “The new warehouse will enable elevated customer service and faster delivery for their important projects.”
All L-Acoustics solutions are manufactured in Europe and prior to the opening of the Singapore distribution centre, orders for customers in the Asia Pacific region were fulfilled from France. The new centre will allow the company to better support clients throughout the region, shortening delivery times and streamlining the supply chain.
L-Acoustics and GEODIS have grown a global partnership which began in 2018 when GEODIS was trusted with the distribution of the manufacturer’s products in France and Europe, with GEODIS providing L-Acoustics with global end-to-end logistics solutions covering freight, and customs and trade compliance management. The choice to partner with GEODIS for the launch of a new distribution centre in Singapore stems from the company’s supply chain expertise and track record in setting up bonded warehouses which demand licensed storage facilities with robust security measures, skilled personnel and operational capabilities aligned with local customs regulations. The Singapore distribution centre is a bonded/zero-GST (Goods and Services Tax — GST) facility.
“Today marks a pivotal moment for L-Acoustics as we expand our regional logistics hub network with the help of our partner GEODIS, aiming to bring our customers the same level of service worldwide” says Hervé Guillaume, CEO at L-Acoustics Group.
“The foundation of our relationship with GEODIS is built on a shared spirit of innovation and performance, and a people-first mindset. Together, we champion hyper-care for our partners throughout all our operations.”
“This recognition of our shared values reaffirms that our commitment to excellence and care is valued by our partners,” commented Onno Boots, President and CEO of Asia Pacific and Middle East, GEODIS, “It is a testament to the strong relationships we have built, the service we provide, and the trust we’ve earned. Together, we will continue to raise the bar of excellence and support L-Acoustics in their growth.”
The WACO System (WACO) has appointed Rotra Air & Ocean as network members for Belgium and The Netherlands–Rotra Air & Ocean N.V. and Rotra Air & Ocean B.V., respectively.
Established in 1909, family-owned Rotra has offices in Rotterdam, Amsterdam, Antwerp, and Brussels and offers worldwide services by air, ocean, rail and barge, as well as AEO-certified customs brokerage.
“We are pleased to welcome Rotra to the WACO network–the company has established itself as a tried and trusted freight forwarder but is also leading the way in digitalising the freight sector,” said Richard Charles, Chief Executive Officer (CEO), WACO.
“Rotra has digitised the entire supply chain through its in-house platform rotraNext, driving cost and time savings for customers and offering process control and quality through transparency.”
“As well as digital innovation, the company has an impressive track record in sustainability–with its commitment to being 100 per cent climate neutral, Rotra is a great example of how freight forwarders can contribute to sustainability.”
As of 2022, Rotra became the first climate-neutral certified freight forwarder in the Netherlands and Belgium by measuring and monitoring its CO2 footprint, implementing a SMART reduction plan, and offsetting residual emissions.
The company has over 100 years of experience in freight forwarding and expertise across several sectors, including dangerous goods, aerospace, aviation, automotive, pharma, healthcare, consumer goods and food.
“We are pleased to join The WACO System and look forward to collaborating with other network members on initiatives that support our values of reliability and sustainability in the global freight industry,” said Machiel Roelofsen, Director and Co-Owner of Rotra.
“We believe that the combination of our innovative platform with our expertise and personal touch can make a significant difference in optimising supply chains,” said Paul Rombeek, Managing Director of the Rotra Group.
This year, WACO continues to strengthen its network worldwide and is leveraging digital initiatives to benefit its members.
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
