Multi-Modal Shipping Innovation by DHL and Schneider Electric Aims to Reduce Carbon Footprint

For many organizations, air freight is a core part of global supply chain delivery.
Pilot schemes significantly reduce emissions

(IN BRIEF) DHL Global Forwarding and Schneider Electric have partnered to introduce innovative multi-modal shipping solutions aimed at reducing carbon emissions associated with air freight. They successfully launched two bridges, connecting Singapore and North America and India and North America, using sustainable aviation fuels (SAFs) and a combination of air and sea transport. Schneider Electric plans to create a total of eight such global multi-modal bridges with logistics partners. The initiative has the potential to reduce carbon emissions by up to 40% compared to conventional air freight. These efforts are part of Schneider Electric’s commitment to achieving a 25% reduction in carbon emissions across its entire value chain by 2030, validated by the Science Based Targets initiative.

(PRESS RELEASE) BONN, 31-Jan-2024 — /EuropaWire/ — In a groundbreaking collaboration, Deutsche Post DHL Group (ETR: DPW), a German multinational package delivery and supply chain management company, announces that DHL Global Forwarding has joined forces with Schneider Electric, a leader in energy management and automation digital transformation, to introduce an innovative multi-modal shipping model. This industry-first initiative harnesses sustainable aviation fuels (SAFs) to enhance supply chain agility while minimizing environmental impact.

Air Freight’s Vital Role in Global Supply Chains

Air freight plays an essential role in global supply chain operations for many organizations.

Significant Emission Reductions through Pilot Programs

DHL Global Forwarding, headquartered in Bonn, Germany, has partnered with Schneider Electric to create and launch this trailblazing multi-modal shipping model, targeting Scope 3 carbon emissions reduction within the supply chain.

Sea Freight Integration

In addition to the Singapore-North America and India-North America bridges, DHL Global Forwarding and Schneider Electric are planning to establish a total of eight global multi-modal bridges with their logistics partners, deployable upon demand.

Substantial Carbon Reductions through Air-Sea Combination

Schneider Electric estimates that these multi-modal bridges, which seamlessly integrate air and sea transport, could reduce carbon emissions from regional shipment lanes by up to 40% compared to conventional air freight methods. Since the pilot’s inception in March 2023, both the Singapore-North America and India-North America bridges, operated in partnership with DHL Global Forwarding, have witnessed up to a 20% reduction in carbon emissions.

Balancing Cost Efficiency with Sustainability

Despite the higher carbon footprint associated with air freight, many organizations rely on it for global supply chain deliveries. SAFs offer a means to reduce carbon emissions but come at a premium compared to traditional jet fuel. Utilizing more cost-effective sea freight allows organizations to allocate savings toward purchasing SAFs, further diminishing carbon emissions.

Elevating Multi-Modal Shipping for Carbon Reduction

While multi-modal shipping is commonly employed in supply chain management to ensure business continuity, it has not traditionally been used as a primary method for reducing Scope 3 carbon emissions.

Innovation in Action

Schneider Electric and DHL Global Forwarding’s pioneering pilot schemes have introduced multi-modal shipping as a routine, on-demand process. Deliveries are executed with the flexibility to choose between air freight and multi-modal shipping based on factors such as capacity, surges in air transport, profit margins, customer incentives, and product availability. This comprehensive approach includes DHL Global Forwarding’s SAF-enabled GoGreen Plus service, enabling deliveries to produce up to 90% fewer carbon emissions and operate sustainably. This agility empowers Schneider Electric to strategize, decide, procure, execute, and oversee the model, thereby enhancing supply chain resilience and flexibility.

Commitment to Sustainability and Carbon Reduction

Thomas George, Chief Commercial Officer at DHL Global Forwarding, emphasizes the company’s commitment to sustainability, stating, “Through our GoGreen Plus service, we provide our customers with sustainable transport solutions, including SAF. Our partnership with Schneider Electric is instrumental in driving positive change and making sustainable logistics a reality. At DHL, we have set a goal to reduce GHG emissions to 29 million tonnes CO₂e by 2030. To achieve this, we are investing €7 billion in clean operations, demonstrating our unwavering commitment to a greener future,”

A Shared Vision for a Sustainable Future

Mourad Tamoud, EVP Global Supply Chain at Schneider Electric, underscores the company’s dedication to sustainability, stating, “At Schneider Electric, sustainability is at the core of our mission and it drives us to innovate for the future. We can’t do this alone: partnerships with our supply chain ecosystem and strategic partners like DHL are essential. We hope others are inspired by these possibilities, so we can collectively reduce carbon emissions.”

Net-Zero Roadmap

Schneider Electric, validated by the Science Based Targets initiative, has outlined a net-zero roadmap. This roadmap commits Schneider Electric to achieving net-zero readiness across its operations, with an absolute carbon reduction target of 25% throughout the entire value chain by 2030.

Media contact:

David Stöppler
Spokesperson for DHL Global Forwarding, DHL Freight, DHL eCommerce

DHL Group
Charles-de-Gaulle-Str. 20
53113 Bonn
Germany

Twitter: @dpdhl_stoeppler

SOURCE: Deutsche Post AG