Innovation in Contract Logistics: DB Schenker brings its first logistics robot in the Czech Republic into operation

Fully automated transport of trolleys ? Advanced navigation while avoiding obstacles ? Short implementation time

At its Contract Logistics site in Pardubice DB Schenker has implemented a new autonomous mobile robot (AMR). In the warehouse around 120 kilometers east of Prague the robot named MiR Hook 200 helps to detect and transport trolleys to make operations even more efficient. The robot comes from the Danish technology company Mobile Industrial Robots (MiR) and was deployed in cooperation with DREAMland, a Czech distributor and integrator of autonomous and collaborative robots. While DB Schenker is using autonomous machines in various countries already, the new installation is the logistic company’s first robot in the Czech Republic.

Toma?s? Holomoucky?, DB Schenker Managing Director for the Czech Republic: “I am extremely pleased we have successfully implemented our first robot in our regular operations in the Czech Republic. Autonomous solutions such as this will enable us to optimize our logistics processes and relieve our staff by taking over simple warehouse tasks. We are proud to be driving innovation and building the warehouse of the future for our customers.”

Frantisek Kysela, CEO of DREAMland: “We are glad that we were able to help DB Schenker with automated transport at the site in Pardubice. We are looking forward to other joint projects in the future.”

Equipped with a 3D camera and laser scanner, the MiR Hook 200 can automatically detect trolleys ready for pick up by scanning the related QR codes in predefined zones, or by triggering the next task via any mobile device. The robot’s double battery provides an operating time of 16 hours, after which the AMR is sent to a charging station and fully recharged within three hours.

In operation in Pardubice, the new tool automatically picks up trolleys from the storage area loaded with items for shipping and carries them to the packing station, before transporting empties back to the storage area. Given a simple scalability, DB Schenker currently considers implementing the AMR at further logistics locations.

With a maximum towing payload of up to 500 kilograms, the robot can avoid both moving and stationary obstacles and adjust its route independently. It did not need major infrastructure changes for its implementation and could be deployed almost immediately with minimal investment. The MiR can additionally be easily converted to meet changing requirements with exchangeable add-on modules. The programming is done through an intuitive user interface, has a short installation time and could be programmed by DB Schenker staff, eliminating the need for a dedicated technician.

In Pardubice, DB Schenker employs over 100 workers and operates a logistics center with a focus on customers from the industrial and aerospace sectors. The logistics center has a total area of 70,000 square meters, five halls, a direct motorway link to Prague, and its own rail siding where up to six freight wagons can be loaded or unloaded simultaneously.




Kuehne+Nagel with higher profit in the third quarter of 2020

Strong improvement in key operating figures
Strict cost management drove earnings growth
Improved market environment supported Q3 performance
Free cash flow strengthened
Group ready for potential distribution of Covid-19 vaccines
Kuehne+Nagel Group, CHF million

The Kuehne+Nagel Group demonstrated profitable growth in the third quarter of 2020, following a first half year marked by the coronavirus pandemic. On a currency-adjusted basis, the company significantly improved key operating figures in the third quarter.

Net turnover for the first nine months amounted to CHF 14.8 billion and EBIT to CHF 790 million. Currency fluctuations had a significant negative impact on both net turnover (-5.7%) and EBIT (-5.9%) for the first nine months. Free Cash Flow increased by 31.4% in the first nine months.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, said: "With our motivated team, we are ready for further growth together with our customers, especially in the pharma & healthcare and e-commerce sectors. Even though we expect considerable uncertainties in the coming months, we are well prepared".

Kuehne+Nagel is ready for distribution of Covid-19 vaccines

Kuehne+Nagel is prepared to serve distribution services for Covid-19 vaccines, test kits and related materials
The multimodal pharma & healthcare network with over 230 certified sites worldwide forms the basis
The first contracts related to Covid-19 vaccine production were signed in Contract Logistics
Distribution by Air and Road Logistics is expected to start in 2021 (subject to product approval)
It is currently estimated that between 11 and 15 billion* vaccine doses may be needed globally
*Seabury Consulting Capacity Tracking Database (September 2020)

In the third quarter of 2020, the earnings development in Sea Logistics reflected a very positive reversal of trend compared to the first half of the year. The improvement is due to the recovery of demand from SME customers and the increase in imports to Europe and North America from Asia.

In the third quarter of 2020, container volume rose by 10.4% to 1.2 million TEUs compared to the second quarter. The unit's net turnover amounted to almost CHF 1.8 billion and EBIT improved by 12.3% year-on-year to CHF 137 million. The conversion rate reached 36.2%.

Process optimisation via local Customer Care Locations and central Operational Care Centres supported effective cost management and the future expansion of Kuehne+Nagel's leading market position.

*adjusted for a positive one-off impact of net CHF 63 million in Q3 2020 due to early settlement of the contingent consideration of an acquisition in 2018.

Improved market conditions in the third quarter of 2020, including the automotive sector and perishable goods, led to a greater than normal seasonal uplift in Air Logistics volumes versus the second quarter. Crisis goods, on the other hand, increasingly shifted to alternative transport routes.

At 354,000 tonnes, air freight volume in the third quarter was 12.8% lower than in the same period of the previous year, while net turnover increased by 8.7% to CHF 1.2 billion and EBIT by 89.9% to CHF 169 million. This includes a positive one-off impact of net CHF 63 million due to early settlement of the contingent consideration of an acquisition from 2018.

In September 2020, Air Logistics opened new pharma hubs in Brussels and Johannesburg with direct tarmac access. The even faster handling of goods and the guarantee of product integrity will provide customers with considerable added value, especially for temperature-sensitive vaccines.

Road Logistics
The third quarter of 2020 was characterised by a significant increase in shipments in the Road Logistics business unit versus the previous quarter. In particular, demand for domestic transport capacities in European countries reached pre-crisis levels. In North America, demand for all product segments ? with the exception of pharma & healthcare and e-commerce ? remained significantly below the previous year's level; however, an initial market revival has been evident since September.

The business unit's net turnover decreased to CHF 796 million in the third quarter and EBIT was down to CHF 12 million. The continued very weak demand for expo and event logistics had a significant negative impact on the result.

Kuehne+Nagel is preparing ? together with its customers ? for the future customs clearance (export and import) between the EU and the UK with a digital solution (Your Easy Brexit Solution).

Contract Logistics
Market share gains in pharma & healthcare services and in e-commerce fulfilment as well as stringent cost management led to a significant improvement in earnings in Contract Logistics in the third quarter of 2020 compared to the second quarter.

The business unit's net turnover in the third quarter was CHF 1.2 billion and EBIT was CHF 53 million. Adjusted for extraordinary income in the third quarter of 2019 and 2020 from real estate sales of CHF 21 million, and CHF 4 million respectively, EBIT increased by 44%.

The business unit is continuing to expand its e-commerce fulfilment activities which are driving a significant proportion of new business wins. In Sweden, for example, Kuehne+Nagel will operate a new distribution centre for Amazon.


DHL Freight provides green logistics measures for road freight

DHL Freight offers a wide range of measures, such as CO2 monitoring, alternative fuels, and new services for climate-neutral supply chains
Overview of initiatives to reach zero-emissions target published in new white paper
The measures are already delivering tangible results: Deutsche Post DHL Group has already improved its CO2 efficiency by 35%, compared to 2007

DHL Freight is strengthening its commitment to reducing greenhouse gases and pollutants. In line with the company's GoGreen program, the freight specialist is publishing a new white paper to introduce measures, services, and solutions that help road freight customers improve sustainability in their supply chains. By 2050, Deutsche Post DHL Group aims to reduce all logistics-related emissions to zero. Important milestones on this journey have already been achieved: Compared to 2007, the Group's CO2 efficiency has improved by 35%. By 2025, 50% of emissions are to be reduced. The complete White Paper "Green logistics in road freight" is now available for free download in German and English at https://dhl-freight-connections.com/en/white-paper-green-logistics.

"As a leader in logistics, we want to reduce all logistics-related emissions to zero. This is a path that requires courage to test technologies and alternatives, but it also requires persuasion in order to get business partners on board to drive change together. We can reach real decarbonization in logistics only in collaboration with all players," says Antje Huber, Senior Vice President Marketing & Strategy, responsible for green logistics at DHL Freight.

DHL Freight's portfolio contributes to this goal with a wide range of solutions that also help customers improve their environmental footprint through logistics. The company is already setting decisive standards in road freight today. For example, with the premium service DHL Freight Eurapid, groupage shipments can reach their destination in a climate-neutral way - within 24 or 48 hours throughout Europe.

When it comes to creating transparency in terms of emissions, digital tools enable appropriate CO2 monitoring along the supply chain. With the support of certified GoGreen specialists from DHL, customers can evaluate various transport scenarios in terms of their CO2 emissions and optimize them according to their needs.

In addition, DHL Freight is focusing on alternative engine technologies in its vehicle fleet. The company already has 30 LNG trucks, that burn 15% less fuel than diesel vehicles, on Europe's roads. The company is also testing electric trucks in heavy-duty transport and is promoting hydrogen technologies, as the proportion of alternative engine systems in the DHL fleet, those of with service partners, is aimed to continue to increase. Rail transport also remains important for sustainability and DHL Freight will focus much more on this sector. Combined transport solutions are worthwhile - especially on long-haul routes - not only economically but also ecologically. DHL Freight would like to offer its customers additional individualized solutions in the future.

In situations where emissions cannot be avoided at present, DHL Freight invests in recognized climate protection projects to ensure certified compensation. This contributes to the climate neutralization of the entire supply chain.


DHL decarbonizes all ‘less-than-container’ load shipments in Ocean Freight globally

DHL Global Forwarding is the first logistics service provider to offer truly climate neutral ocean freight shipments without additional costs
Thanks to advanced biofuels, DHL Global Forwarding customers benefit from a reduction of their carbon footprint
Tim Scharwath, CEO DHL Global Forwarding, Freight: "Sustainable fuel solutions are a key lever to change the fuel mix and reduce carbon emissions in ocean freight."

DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, will be neutralizing the carbon emissions of all less-than-container load (LCL) ocean freight shipments from January 1, 2021. As one of the leading ocean freight forwarders worldwide, and in line with Deutsche Post DHL Group’s "Mission 2050 ? Zero Emissions", DHL is committed to lead the transition to clean and sustainable sea freight transport. The CO2 compensation for all LCL shipments will be achieved by using maritime biofuels, utilizing existing and new partnerships.

"To fight against climate change, the transport sector needs true decarbonization. For us at DHL Global Forwarding, sustainable fuel solutions are the key lever to change the fuel mix and ultimately reduce carbon emissions in ocean freight. This is why we have taken the decision to neutralize the carbon emission of all our LCL shipments. Even though we are in unprecedented times, due to the ongoing pandemic, we have to make sure that climate protection and sustainability efforts remain at the forefront", comments Tim Scharwath, CEO DHL Global Forwarding, Freight.

DHL Global Forwarding’s new green service is not only another important milestone on Deutsche Post DHL Group’s journey towards zero emission logistics, but also helps customers reduce their carbon footprint. At no extra cost to the customer, the heavy oil that would ordinarily be used is replaced with sustainable marine biofuel onboard a preselected container vessel. In this way, true carbon neutralization is achieved. The CO2-reduction benefits are allocated to the customer. In addition, DHL Global Forwarding has a GoGreen carrier evaluation program, which allows the freight forwarder to give preference to carriers with strong environmental performance.

Deutsche Post DHL Group has been exploring renewable fuels as an important lever to minimize ocean freights’ impact on the environment. Key criteria in evaluating the suitability of renewable fuels are that they are produced sustainably and do not compete with other needs, for example with food production for land use. Following strict sustainability standards, the waste-based biofuels must meet the requirements to be qualified as the cleanest biofuels currently available on the market.

Based on the principles "Burn Less, Burn Clean", the engagement within Deutsche Post DHL Group’s global GoGreen program also aims to optimize the carbon efficiency of the company’s transport network, fleet, and real estate. This includes reducing energy consumption, increasing the use of renewable energy sources and fuels, and optimizing transportation networks as well as pick-up and delivery routing. Furthermore, transport subcontractors are encouraged to acquire low-emission vehicles and employees are educated to apply environmentally friendly thinking, through training and other activities.



Maersk partners with IB Cargo to offer tailored logistics solutions for IKEA Supply AG in Romania

Maersk and IB Cargo, a Romanian freight forwarding and logistics provider, announce their partnership for the operation of a 75.000 sqm regional distribution centre for IKEA Supply AG, located in CTPark Bucharest West industrial park. The facility, to be completed by end of 2020 and operational by mid-2021, will be the largest warehouse in Romania and will be used by IKEA Supply AG as their distribution centre for inbound and outbound operations for stores in South Eastern Europe and Eastern Mediterranean.

“We are very proud of this project, which will allow us to offer comprehensive and tailored logistics solutions to IKEA Supply AG”, shares Sedef Ayhan, Managing Director, Eastern Mediterranean at Maersk. “This is in line with our strategy of providing integrated logistics solutions and we come with experience from similar projects for IKEA Supply AG in other countries.”

Maersk partners with IB Cargo to offer tailored logistics solutions for IKEA Supply AG in Romania
The new warehouse will hold BREEAM certification, the world’s leading sustainability assessment method for projects, infrastructure and buildings. It will be part of the CTPark Bucharest West, known as the city’s western gateway, conveniently located close to the A1 motorway, the primary East-West corridor in the country and just 10 km from the city’s ring road.
"Over the past 12 years, we have grown in the freight forwarding industry by continuously adding and developing new services, so that we can deliver to our clients not only transport, but solutions that help them grow and optimise. Entering the warehousing market is therefore a natural development for IB Cargo, completing the range of services we offer to the customers. We strongly believe in continuous improvement and we apply those principles also in this project”, shared Catalin Putineanu, Founder and Managing Partner of IB Cargo.


Artificial Intelligence, Robotics, Quantum Computing, Sustainability & Global volatility: DHL Logistics Trend Radar unveils trends that will shape logistics in the future

COVID-19 accelerating digital and automation agendas, as well as future of work
Dynamic growth in data analytics, artificial intelligence, robotics, IoT, Cloud, API's signal a new normal for logistics
Breakthroughs in Quantum Computing, Blockchain, and Space Logistics signal new niches for logistics providers to solve large-scale problems and create new services
Sustainability is a cross-industry imperative, accelerating the need for innovation in packaging, planning, optimization and building management to curb emissions

In the fifth edition of the Logistics Trend Radar, DHL once more has revealed 29 key trends that will impact the logistics industry over the next years. The Report is the result of an extensive analysis of macro and micro trends, as well as the insights from a large partner network including research institutes, tech players, startups, and customers.

"For us as logistics experts, it is important to forecast the challenges ahead and envision possible solutions so that we may best advise our customers. The mega trends that will continue to engage us are not unfamiliar: new technologies, growing e-commerce and sustainability," says Katja Busch, Chief Commercial Officer, DHL. "But some areas will evolve faster than others, so there is the need to understand the underlying trends and their impact on logistics - not least because of the impact of COVID-19 on global commerce and the entire workforce. As a world leader in logistics, we have the insights and the expertise to evaluate the situation."

Well over 20,000 logistics professionals and technology experts shared their perspectives on the future of the industry when visiting the DHL Innovations Centers over the last two years. The findings are consolidated and reflected on the Logistics Trend Radar which acts as a dynamic and strategic foresight tool that tracks the evolution of trends spotted in past editions, identifying present and future trends with every update.

"The next big challenge will be future proofing the logistics workforce through training and upskilling in increasingly technologically sophisticated operations. This will take center stage on the strategic agendas of supply chain organizations in the years to come," said Matthias Heutger, Senior Vice President, Global Head of Innovation & Commercial Development at DHL. "The Logistics Trend Radar serves as seismograph for future trends. Based on data from the last seven years, we can make longer-term forecasts and thus support our partners and customers to create roadmaps for their business as well as helping to structure and catalyze further industry-leading research and innovations. In this edition, we already see the impact of COVID-19 is accelerating trends that were already well underway - big data analytics, robotics and automation, and IoT, all of which are underpinned by steady progress in artificial intelligence."

Acceleration of transformation processes

The fifth-edition Logistics Trend Radar indicates that we are experiencing an overall stabilization of trends from the past four years. However, with the logistics industry weathering the current global pandemic, transformation processes have been accelerated. COVID-19 has driven changes regarding recent logistics innovation, automation, and digital work more rapidly and has accelerated industry digitalization by years. Conversely, many trends initially perceived as disruptive game-changers for the logistics industry have yet to deliver on their disruptive potential. Self-driving vehicles and drones continue to be held back by legislative and technical challenges as well as limited social acceptance. Logistics Marketplaces are stabilizing on a few leading platforms, and established forwarders are entering the game with their own digital offerings, backed with robust global logistics networks. From cloud computing to collaborative robotics, big data analytics, artificial intelligence, and the Internet of Things, logistics professionals have to make sense of a vast market of novel technology. Modernizing all touchpoints of supply chains, from an elegant digital or customer journey, through fulfillment transport and final mile delivery is the new imperative for long-term success. Those who adopt and scale new technology and upskill workforces fastest, will have a competitive advantage on the market.

E-commerce growth continues to advance innovation and sustainability agendas

E-commerce is still growing rapidly and yet represents only a fraction of global consumer retail spending. Business-to-business e-commerce is expected to follow suit and dwarfs the consumer market size by a factor of three. The coronavirus pandemic has served not only to accelerate both e-commerce growth and supply chain innovation agendas. Key moves to scale and adopt new technology like intelligent physical automation, IoT-powered visibility tools, and predictive capabilities from AI will ultimately determine the ability to fulfill heightened customer demands and secure industry leadership positions in the future.

With governments, cities and solution providers commit to cut down on CO2 emissions and waste, sustainability now is an imperative for the logistics industry. Indicated by the increasing demand on sustainable solutions to reduce waste, leverage new propulsion techniques and optimize facilities, it is also on top of the supply chain agendas. Today, 90+ national bans on single-use plastics exists and bulky packaging causing 40 percent parcel void space, making a rethinking of the packaging inevitable. Sustainable Logistics - optimization of processes, materials, new propulsion techniques, and smart facilities - provide huge potential for logistics to become more environmentally friendly. Smart Containerization in transportation will also be important in developing environmentally friendly formats for delivery in congested cities.

DHL regularly publishes the Logistics Trend Radar as a key instrument for the global logistics community. Both within DHL and across industry, it has become an acclaimed benchmark for strategy and innovation, as well as a key tool to shape the direction of specific trends, most recently packaging, 5G, robotics and digital twins.

The fifth edition DHL Logistics Trend Radar, including information on deep dives and projects, is available for free download at www.dhl.com/trendradar



Maersk meets increased customer needs with a dedicated, carbon neutral Pharma warehouse in Poland

To further increase its capabilities in serving pharmaceutical customers in Central Europe, Maersk is launching its second dedicated warehouse in Poland, specifically designed for this customer segment and with carbon neutrality in mind.

Mszczonow, Poland --- Since 2001, Maersk has been offering global pharmaceutical players in Central Europe professional warehousing and distribution services specifically tailored to meet the needs of this demanding customer segment. To further build on this experience and address growing customer needs, Maersk is launching a project to create a second pharmaceutical warehouse as part of its existing warehousing and distribution centre in Mszczonow (Poland), expected to be operational by end of June 2021.

Focus on quality and sustainable solutions
Equipped with a modern, state-of-the-art temperature controlling system that will ensure the safety of sensitive cargo, the new building will be to a large extent powered by renewable energy, ensuring its sustainability and carbon neutrality. The facility will have integrated Quality Management System implemented, based on Good Distribution and Manufacturing Practice (GDP) and ISO certificates.

The warehouse will be an addition to Maersk’s already existing own warehousing and distribution centre in Mszczonow (Poland), which has dedicated sections for human and animal health products and will be operated by a staff of experts in logistics needs of this customer group.

“In such an industry, quality plays a pivotal role and it can only be guaranteed by experienced and competent personnel who have a thorough understanding of specific requirements of pharmaceutical customers”, shares Jakub Mach, Ph.D., Country Cold Chain Logistics Manager at Maersk in Poland. “In that sense, the new project is equally important for the additional warehousing space we will bring to the market, as it is for the capabilities of our people involved in daily operations”.

The new warehousing and distribution centre will in addition offer repacking capabilities, as well as professional transportation services in different temperature ranges (ambient, cold, liquid nitrogen and dry ice) based on a validated Transport Management System.

Preparing for future growth
“Our ambition is to be top choice healthcare logistics provider and No. 1 in Animal Health logistics by offering high quality solutions for the healthcare industry, as well as flexibility in adapting to its specific requirements”, shares Hristo Petkov, Global Vertical Head, Pharma at Maersk. “The pharmaceutical industry is experiencing growth, which we can support with even more warehousing and distribution capacity, coupled with market knowledge and capabilities of our dedicated teams.”

FACT BOX ? new Maersk pharmaceutical warehouse in Mszczonow, Poland
Fully compliant with EU GDP (Good Distribution Practice) (2013/C 343/01), GMP, ISO 9001 [QMS], ISO 13485 [Medical Devices], ISO 22000 [HACCP]

Modern, carbon neutral facility thanks to photovoltaic energy solutions installed, which provide a total of ca. 600 MWh annually

Available space: ca. 15 000 sqm; operational height: 11,5 m; approximate capacity: ca. 24 000 pallet places

Strategic location:

40 km from Warsaw Chopin Airport
Next to S7 motorway, connecting two most populous Polish metropolitan areas ? Silesia and Mazovia with Warsaw
Easy access to A1 and A2 ? two major Polish highways, linking North with South and East with West
Road bypassing the town allows to reduce traffic jams in the proximity of Logistics Park


CP and Maersk reach agreement that will benefit North American customers and the environment

Calgary - Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) and Maersk have reached an agreement to build and operate a world-class transload and distribution facility in Vancouver to expand CP’s and Maersk Canada’s supply chain options for customers. The CP transload facility will be an expansion of CP’s existing Vancouver Intermodal Facility and thus will benefit from turnkey rail infrastructure.

The transload facility is designed to apply Maersk’s global integrator of container logistics strategy and will offer customers access to a multi-commodity transload facility that will rely on the substantial use of rail instead of truck in the Vancouver market, as CP will shuttle containers to and from the ocean terminals via rail. Maersk’s ambition to establish a sustainable supply chain aligns with CP’s initiatives to fight climate change. This compelling combination will provide an effective and efficient long-term intermodal solution for customers.

“CP’s unique landholdings in Vancouver enable us to bring to market a first-of-its-kind transload facility that creates tremendous opportunity for sustainable growth,” said CP’s President and CEO Keith Creel. “Together with Maersk, the global shipping leader, we will transform intermodal transportation in North America.”

Omar Shamsie, President of Maersk Canada said, “This agreement installs more agile supply chain options and capacity to and from Vancouver for our North American customers. Marketplace fluctuations, e-commerce demands and omnichannel fulfillment are testing every company ? so this integrated logistics solution with CP will clearly elevate supply chain performance.” Vancouver warehouse space has been tight in 2020 ? which, combined with Vancouver ports experiencinghigh utilizations has placed pressure on supply chain performance. “So we applied our global integrator strategy to simplify the current situation and create more end-to-end supply chain solutions by reducing multi-modal handoffs. We can now offer more responsiveness to the pace of business by giving supply chain leaders more control of order timing/fulfillment through inland routing flexibility, better velocity gained from one day savings of rail versus truck and cost savings through seamless transload operations into domestic 53’ trailers. We feel this is quite compelling to lower their year-on-year cost goals while creating a more sustainable supply chain with less truck emissions,” added Mr. Shamsie.

The import transload facility will be operational in 2021.

Note on forward-looking information
This news release contains certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "will", "anticipate", "believe", "expect", "plan", "should" or similar words suggesting future outcomes.

This news release contains forward-looking information relating, but not limited to, our operations, priorities and plans, the anticipated timely performance by us and A.P. Moller - Maersk of our respective obligations, planned capital investments including the development of a new import transload facility in the Vancouver area, expansion of CP's existing Vancouver Intermodal Facility, the anticipated timing, impacts and benefits of such planned long-term relationship with Maersk and capital investments including impacts on CP’s operations and prospects for sustainable growth, decarbonization of the supply chain, and anticipated customer perception of Vancouver as a shipping gateway, CP’s ability to fully serve the planned new import transload facility, anticipated growth in the demand for CP’s services and anticipated future rail traffic in the Lower Mainland of British Columbia.

The forward-looking information contained in this news release is based on current expectations, estimates, projections and assumptions, having regard to CP's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to: North American and global economic growth; commodity demand growth; agricultural production; commodity prices and interest rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; our ability to complete our capital and maintenance projects on the timelines anticipated; applicable laws, regulations and government policies; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to CP; the anticipated impacts of the novel strain of coronavirus (and the disease known as COVID-19); and capital investments by third parties. Although CP believes the expectations, estimates, projections and assumptions reflected in the forward-looking information presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.

Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information. By its nature, CP's forward-looking information involves inherent risks and uncertainties that could cause actual results to differ materially from the forward looking information, including, but not limited to, the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks associated with agricultural production, such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CP; inflation; changes in laws, regulations and government policies, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; trade restrictions or other changes to international trade arrangements; climate change; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; and the pandemic created by the outbreak of the novel strain of coronavirus (and the disease known as COVID-19) and resulting effects on economic conditions, the demand environment for logistics requirements and energy prices, restrictions imposed by public health authorities or governments, fiscal and monetary policy responses by governments and financial institutions, and disruptions to global supply chains. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports filed by CP with securities regulators in Canada and the United States. Reference should be made to "Risk Factors"and "Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in CP's annual and interim reports on Form 10-K and 10-Q.

The forward-looking information contained in this news release is made as of the date hereof. Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.

About Canadian Pacific
Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of CP. CP-IR


DHL Global Forwarding connects three continents with dedicated flight

The China-Netherlands-U.S.-South Korea airfreight charter is developed with the demands of the life sciences and healthcare sector in mind

The Covid-19 pandemic saw shippers leverage DHL Global Forwarding's cold chain capabilities in life sciences and healthcare to transport test kits and pharmaceutical products

DHL Global Forwarding has launched an air freight charter connecting Asia Pacific to Europe and the U.S. to meet demand from customers in the technology, manufacturing and life sciences and healthcare sectors. Managed by StarBroker, DHL Global Forwarding's in-house charter team, the twice-weekly charter originates from Chongqing, China and flies to Amsterdam, Netherlands; Chicago, United States; Incheon, South Korea before returning to China.

Thomas Mack, Global Head of Air Freight DHL Global Forwarding said, "While some passenger airlines have resumed operations, the situation in the air freight market remains volatile - especially as belly capacity is still tight As the leader in the air freight market, DHL Global Forwarding's top priority is to provide our customers with sufficient and reliable air freight capacity. Not only are the resilient, agile and reliable supply chains of highest importance for an economic recovery, but also in preparation for the availability of vaccines and other essential medical supplies during the pandemic."

South Korea has seen its export of healthcare products rise year-on-year by 26.7% in the first half of 2020, with pharmaceutical goods in particular increasing by 52.5%. China has exported 28.5% more medical devices in the first five months of the year as compared to a year ago. In 2019, China, the Netherlands and the United States were among the top ten importers and exporters of medical goods.

"Over the years, DHL has built up its expertise from globally certified facilities and staff to technologies that track shipments in real-time in addition to ensuring the integrity of such products throughout their journey. Getting the much-needed air capacity is the last piece in the value chain puzzle, so to speak, that ensures temperature sensitive products such as life-saving vaccines reach the communities-in-need," added Mack.

In a recently published white paper DHL together with McKinsey & Company as analytics partner explores the logistics challenges for vaccines and medical goods during COVID-19. To provide global coverage of COVID-19 vaccines, up to ~200,000 pallet shipments and ~15 million deliveries in cooling boxes as well as ~15,000 flights will be required across the various supply chain set-ups. The complete white paper is available for download at https://www.dhl.com/pandemic-resilience.

DHL Global Forwarding has a global network of facilities that meet the European Union's Good Distribution Practice (GDP) guidelines for life sciences and healthcare supply chains. The leading international provider of air, sea and road freight services has a suite of temperature-controlled freight solutions such as DHL Air Thermonet and DHL LifeConEx that allows real-time visibility and active monitoring for the movement of goods that could include medicines, supplements, vaccines, medical devices and diagnostic equipment.

In April 2020, DHL Global Forwarding tapped on its network of life sciences and healthcare facilities, temperature-controlled solutions and customs clearance expertise to fly more than 1.3 million Covid-19 test kits from South Korea to Brazil, Ecuador, India, Lithuania, Poland, Russia and Saudi Arabia. The freight forwarder also launched a dedicated 100-ton weekly air freight service for organizations and governments shipping health and medical-related items and other goods from China to Middle East and Africa.



Kuehne+Nagel invests in global vaccine distribution network

Newly opened Brussels and Johannesburg airside hubs with direct tarmac access crucial for speed and product integrity
Enhancing Kuehne+Nagel’s pharma & healthcare network encompassing more than 230 operations worldwide

With the opening of airside pharma & healthcare hubs in Brussels, Belgium, and Johannesburg, South Africa, Kuehne+Nagel adds two strategic elements to its global GxP-certified network of temperature-controlled facilities for the distribution of vaccines and other pharma & healthcare products.

As many of the temperature-sensitive products have very low to no stability outside of their stated temperature ranges, direct tarmac access at Kuehne+Nagel airside facilities even further minimises the risk of temperature excursions and ensures product integrity during the logistics journey. The new premises have dedicated areas for all ranges of temperature-sensitive products: <-20°C, +2° to +8°C and +15° to +25°C. In addition, these facilities have the ability to change or add dry ice as required for deep frozen shipment where temperatures need to be maintained below -60°C.

In Brussels, the new Air Logistics hub is located in the center of Brucargo at the confinements of Brussels airport, the first airport in the world with an IATA CEIV pharma certification. The new Kuehne+Nagel facility consists of 15,546 sqm of warehousing space and is fully connected to the recently extended Geel Contract Logistics pharma warehousing facility, as well as the pan-European KN PharmaChain Road Logistics Network managed from Luxembourg.

In Johannesburg, the expanded KN PharmaChain airside facility at the international airport answers all temperature-sensitive cargo handling, consolidation and storage requirements and offers a number of value-added logistics services before distribution in South Africa or into Africa. Additionally, the new facility provides a unique temperature-controlled plane side solution through the use of state-of-the-art KN PharmaChain cool dollies. Built to accommodate both lower deck and main deck pallet sizes, the cool dollies protect the integrity of the cargo from the aircraft directly into the airside facility’s GxP coolers.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, comments: "Today, new pharma & healthcare products tend to be more valuable, more temperature-sensitive and have additional requirements for storage and transportation conditions. Such capabilities and facilities are not easily available globally. The new hubs in Brussels and Johannesburg will ensure that our pharma & healthcare customers can fully rely on Kuehne+Nagel to handle the specific challenges of integrity as well as provide end-to-end visibility and regulatory compliance along the logistics journey of their sensitive products. So, they can focus on the health and well-being of their patients; because this is what matters the most."

Kuehne+Nagel’s quality-driven approach continues to set the industry benchmark for pharma and healthcare logistics. The company currently has over 230 GxP-certified operations worldwide ? included in the pharma & healthcare network are additional hubs offering solutions for temperature-controlled needs; they are located in the US, the UK, Denmark, Spain, Luxembourg, Italy, France, Singapore, India, Panama, the UAE and Australia.


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