New sustainability pact between Panalpina and CMA CGM

Panalpina, the world’s fourth biggest ocean freight forwarder by transport volumes, and CMA CGM, one of the world’s leading shipping groups, have signed a sustainability agreement aimed at reducing their respective carbon emissions by 2025. As of 2020, newbuild LNG-powered mega-vessels with a capacity of 22,000 twenty-foot containers (TEUs) will help achieve the environmental goals.

Aiming at responsible development in ocean freight, Panalpina and CMA CGM have signed a sustainability agreement for maritime transport.

“Partnering with strategic partners such as CMA CGM that are technology driven and share a similar vision of sustainability, and using them to transport our customers’ cargo will help us achieve our ambitious sustainability goals,” says Lindsay Zingg, Panalpina’s global head of quality, health, safety and environment (QHSE). Panalpina is one of only 140 companies globally with approved Science Based Targets where the company ? amongst other targets ? commits to reduce CO2 emissions from subcontracted transportation by 22 percent by 2025 (baseline 2013).

CMA CGM, one of the world’s largest box ship carriers, aims to reduce carbon emissions per standard container (TEU) transported by 30 percent by 2025 (baseline 2015). “We are determined to reach that goal by investing in highly fuel-efficient vessels, making constant technical improvements, and retrofitting our fleet,” says Julien Topenot, head of environment and sustainability at CMA CGM.


LNG-powered mega-vessels to reduce carbon emissions

Marseilles-based CMA CGM, which recently celebrated its 40th anniversary, was the first shipping company to order container ships propelled by liquefied natural gas (LNG). Nine LNG-powered mega-vessels or ULCVs (Ultra Large Container Vessels) with a capacity of 22,000 TEUs are scheduled for delivery in 2020. “Compared to current fuel-powered vessels, our new LNG vessels will enable a reduction of up to 25 percent in CO2. They will also generate 99% less sulphur emissions, 99% less fine particles and 85% less nitrogen oxides emissions,” explains Topenot.

“We are already using CMA CGM’s most efficient and environmentally-friendly services. With this new agreement, both Panalpina and CMA CGM reinforce their commitment to sustainability,” adds Zingg.

In 2017, Panalpina transported 1.5 million TEUs, making it the fourth biggest ocean freight forwarder in the world.

In the same year, with a fleet of approximately 500 vessels including energy-efficient ships such as the Antoine de Saint-Exupéry and more than 200 services that cover all of the world’s seas, CMA CGM transported 19 million TEUs.

For the environment and more

The scope of the sustainability agreement between CMA CGM and Panalpina goes beyond the reduction of the environmental impact via eco-friendly transport solutions. The companies have committed to collaborate, innovate and improve in four key areas: the environment, ethics and compliance, social responsibility, and community. Initiatives where CMA GGM and Panalpina intend to work more closely together include occupational health and safety programs, local sourcing as well as emergency relief and support.

Notes to the editor:

Since January 2015, Panalpina automatically calculates all customers’ emissions based on the reporting standard EN 16258. In December 2015, Panalpina committed to the Science Based Target Initiative, setting approved science-based targets and thus agreeing to actively manage emissions through reduced energy use and stakeholder engagement. Panalpina was one of the first companies globally to have such targets approved. They are in line with the views of the Intergovernmental Panel on Climate Change (IPCC) to keep global warming below a dangerous threshold. According to this panel of scientists, global greenhouse gas emissions must be cut by up to 70% by 2050 to limit global warming to 2 °C and avert irreversible climate change. In a new report published on October 8, 2018, the IPCC highlighted a number of climate change impacts that could be avoided by further limiting global warming to 1.5 °C instead of only 2 °C.

Following the International Maritime Organization’s historic decision in April of 2018, aimed at reducing the total annual greenhouse gas emissions by at least 50% by 2050 compared to 2008, CMA CGM reaffirmed its commitment towards the protection of the environment with the new 30-percent reduction goal by 2025. Prior to this, the CMA CGM Group had already developed several innovations (fleet and engine optimization, creation of Fleet Centers, etc.), which led to a reduction of its carbon emissions by 50% between 2005 and 2015 and by 10% in 2017 compared to the previous year.

About CMA CGM

CMA CGM is a leading worldwide shipping group with a young and diversified fleet of approximately 500 vessels. Its ships call 420 of the world’s 521 commercial ports. In 2017, they carried 18.95 million TEUs (twenty-foot equivalent units). Headed by Rodolphe Saadé, the CMA CGM Group is present in more than 160 countries with 755 agencies and more than 30,000 employees worldwide. 4,500 employees work in France, of which 2,400 at the Group’s head office, the CMA CGM Tower in Marseilles, the city where the company was founded in 1978 and today is the largest private employer.


DHL research shows 75% of companies believe investment in ground transportation will directly support their company growth

n evolution in the transport sector is being driven by trends such as the rapid growth of e-commerce, the continued urbanization of markets, and technologies such as big data analytics and digitalization
Advanced technologies and service options are changing the way shippers and 3PLs manage their global transport flows
Service expectations, new markets, new ground transportation solutions have all increased as a result

DHL launched its latest research report on ground transportation logistics. The report reveals that the fast-paced evolution underway in the sector is changing the way that shippers think when purchasing a transportation solution. The global survey of transport buyers and operations professionals found that 83% of businesses are willing to pay more for better and value-added services as long as they provide a measureable return on their investment.

"The Logistics Transport Evolution: The Road ahead" is a report by DHL Supply Chain, using data from research by Lieberman Research Worldwide, LLC (LRW) that was commissioned by DHL to identify the factors that are impacting ground transportation logistics and how industry is adapting to the new frontier of solutions available. The report found that across sectors and regions, companies are increasingly viewing ground transportation as being more than a tactical commodity, with 71% now considering it to be a strategic component of their businesses. Companies agree there is a direct correlation between ground transportation and business performance with three quarters (75%) believing investing time and resources in ground transportation will directly help their company sales.

Javier Bilbao, Global Transport Lead & CEO Latin America, DHL Supply Chain said: "Transport is undoubtedly a critical aspect of the global business environment, and these findings indicate that companies across sectors and markets are now recognizing its strategic value. We undertook this study to gain an insight into exactly what companies expect from their transportation service providers, both today and tomorrow. Our research has shown us that customers are increasingly looking for complete solutions with a global reach as they have the capability to solve a wide range of transportation issues and requirements."

Global shifts in the business environment were identified as disrupting the ground transportation landscape. In particular, the exponential growth of e-commerce and its implications on service was identified by 65% of companies as having a significant impact on their supply chain in the next 1-2 years.

Bilbao added: "Echoing the findings of our digitalization research, technology will be central to navigating this new era for ground transportation. The capability of AI and data analytics to manage the order profile and shipping patterns of customers' increasingly complex and demanding operating models while optimizing cost and service, means that they are now viewed as essential services, rather than added benefits."

Although these changing dynamics are being witnessed across regions, variations can also be identified depending on the maturity of the market and the demands placed on shippers from their consumer base. In Latin America, the priority consideration in selecting a ground transportation provider is on time delivery while in Europe, where the market is more mature, optimization of networks is the key focus for shippers.

Broader societal factors were also highlighted as presenting associated challenges, with 61% of companies referencing the increase in urbanization as a factor that will significantly impact their future business. Technology and its ability to help manage this complex environment is increasingly seen as a standard requirement of 3PLs: more than two thirds (67%) of companies believe that big data analytics and artificial intelligence (AI) are services that are essential for 3PLs to offer their shipper customers.

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CEVA Logistics rejects take over proposal

The Board of Directors of CEVA Logistics AG, a global asset-light third-party logistics company, announces that it has received an unsolicited non-binding proposal to acquire the company at the price of CHF 27.75 per share in cash. The Board of Directors of CEVA Logistics carefully reviewed the proposal with the support of its legal and financial advisors and unanimously concluded that the proposal is not in the best interest of the company and its shareholders. Specifically, the Board of Directors concluded that the proposal significantly undervalues CEVA's prospects as a standalone company particularly as CEVA Logistics together with CMA CGM S.A. ("CMA CGM") as a strategic partner has been exploring measures to enhance performance in order to unlock CEVA Logistics' full potential. The unsolicited proposal is therefore inadequate. Accordingly, the Board of Directors has decided to not engage on the basis of this unsolicited proposal.

Modification of stand-still agreement with CMA CGM

In light of the current circumstances, the Board of Directors on request of its major shareholder CMA CGM has agreed to modify the current stand-still agreement between CEVA Logistics and CMA CGM. CMA CGM's duty to not increase its holding above the current 24.99% of the share capital until 5 November, 2018 has been amended to the effect that CMA-CGM is allowed to increase its holding up to one third of the voting rights of CEVA Logistics with immediate effect. All other obligations of CMA CGM (as made public in the IPO prospectus) remain in place, in particular the obligation of CMA CGM to tender its shares into a public tender offer by a third party if recommended by the Board of Directors unless CMA CGM launches a superior offer. In addition, CMA CGM has agreed, under certain conditions, to not launch or trigger an offer without the recommendation of the Board of Directors in the next 6 months (other than an offer which is superior to another offer).


Rapid response from the air: medicines successfully delivered using a parcel drone in East Africa

DHL, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and drone manufacturer Wingcopter complete successful pilot project
More than 180 take-offs and landings, over 2,200 km flown and roughly 2,000 flight minutes recorded

Revolutionising the delivery of medicines to remote areas using drones - the pilot project Deliver Future proves that it's not science fiction. Three experts in their respective fields are making it happen: DHL, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the German drone manufacturer Wingcopter. Over a six-month period, they successfully tested the delivery of medicines using a drone to an island in Lake Victoria. During the trials, the autonomous DHL Parcelcopter 4.0 completed the 60 km flight from the mainland to the island in 40 minutes on average. A total of 2,200 km were flown and roughly 2,000 flight minutes recorded during the pilot project.



Kuehne + Nagel strengthens footprint in Indonesia through strategic acquisition

Extension of strategic partnership with Wira Logistics through acquisition of its logistics operations
Establishment of nationwide logistics and distribution network to provide fully integrated end-to-end logistics solutions across Indonesia
Indonesia as one of the Asian key development markets forKuehne + Nagel’s contract logistics

Kuehne + Nagel announced the acquisition of the logistics operations of Wira Logistics, a leading Indonesian logistics company. This strategic acquisition will strengthen Kuehne + Nagel’s nationwide warehousing and distribution network in Indonesia.

Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for contract logistics, says: “Indonesia is arguably the most important internet market in South East Asia in terms of its sheer size, emerging middle class and digitally savvy population. With this acquisition we can leverage our global eCommerce strategy. At the same time it allows us to strengthen our Contract Logistics footprint in Asia and our position as a leading logistics service provider. The tightened domestic network will further enhance our value proposition of providing fully integrated end-to-end logistics solutions to our customers across Indonesia.”

The expansion of Kuehne + Nagel’s warehousing and distribution capabilities in Indonesia where imports and exports account for close to US$ 300 billion annually has been a strategic focus for the company. The country’s burgeoning middle class is driving increased purchasing power making it an important consumer market for many companies.

“Kuehne + Nagel started operations in Indonesia in 1992. Over the years, we have become the logistics partner of choice for many blue chip multi-national corporations and local companies. These partnerships are a testament of our expertise and understanding of our customers’ needs, regardless of the size of their company. We are very excited by this acquisition and the additional opportunities that it will create for our business,” said Jens Drewes, President of Kuehne + Nagel South Asia Pacific.

“Wira is very proud to expand our fruitful relationship with Kuehne + Nagel. Our existing and future customers will stand to benefit from Kuehne + Nagel’s market-leading position, capabilities and global expertise,” said Ekahadi Djaja, President Commissioner, PT. Wira Logistics.


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