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Maersk Canada targets landside logistics asset with new Vancouver facility Inbox

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Maersk Canada targets landside logistics asset with new Vancouver facility Inbox. Image: Maersk
Maersk Canada targets landside logistics asset with new Vancouver facility Inbox. Image: Maersk
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Maersk and Canadian Pacific opened the new 117,000 square foot, 103 door Pacific Transload Express facility designed to make Asia/Pacific Northwest supply chains more resilient, flexible and cost-effective. The ability to transload international containers into domestic 53-foot trailers enables customers to achieve overall cost savings for domestic distribution, while reducing storage costs related to port demurrage and inland detention.

Supply chains flowing through the facility will be fast-moving consumer goods in the retail and lifestyle segment that need agile response capabilities to consumer demand fluctuations. FMCG will comprise 80-90% of the volumes and auto parts 10-20%.

“Bringing this new supply chain asset into play today marks an important new Asia/PNW gateway chapter for customers looking for faster order fulfillment achieved through integrated logistics. We’re looking forward to working with CP to make this a vital pivot point for supply chain planners to help them achieve their business goals.” says Omar Shamsie President of Maersk Canada.

Construction of the facility and rail infrastructure was completed last month with Maersk commencing the transloading operation of the facility on Sept. 1. The first containers arrived at the facility earlier this week.

“We are very proud to open this first-of-its-kind transload facility that creates tremendous opportunity for sustainable growth. We are transforming inbound logistics in North America by reducing transit time variability thanks to CP’s premium service and at the same time having a smaller environmental impact and carbon footprint by taking thousands of trucks off the road while leveraging the inherent benefits of moving goods by rail.” said Keith Creel Canadian Pacific President and CEO.

CP will shuttle containers by rail from the three major Vancouver container terminals to the Pacific Transload Express facility. CP built the facility on CP land adjacent to its Vancouver Intermodal Facility to offer optimal transload services with fewer handoffs and better accountability of service.

“This was an attractive feature to our customers intent on integrating their supply chains for higher performance,” added Mr. Shamsie.

Improving supply chain reliability
Currently, transit times range from 35 to 75 days from Asia to North America from factory at origin to a distribution center at destination. With such a big variation, it is difficult for companies to plan supply chain management well while meeting the heightened expectation of cargo delivery to the end consumers. As a result, most companies buy products in advance and build higher safety stock to mitigate the transit time fluctuation, positioning storage solutions closer to their customers.

“We can help our customers reduce the transit time variation from 35-75 days door-to-door to having the cargo in consistently at 35-40 days. This helps customers create a more precise and predictable supply chain that helps them reduce safety stock, saving money on inventory storage costs with this transload solution. We are the first and only company providing this solution in the market” said Erez Agmoni Head of Maersk North America’s Warehousing & Distribution Product Development.

Improving ESG in a holistic way
To support customer environmental social governance (ESG) goals, the Pacific Transload Express facility specifically integrates and extends the use of CP rail service direct from the port of Vancouver as a lower carbon emission choice than multiple trucks in the port complex and on local roads. The new facility will eliminate over 100,000 truck trips per year in the Vancouver area (almost 60,000 round trips per year), and save over 4,000 tons of carbon dioxide (greenhouse gas) emissions /year which is equivalent to the CO2 emissions of 9,261 barrels of oil consumed. The reductions have two sources: First the shorter direct rail connection between Centerm, Vanterm and Deltaport and the transload facility vs. a triangle route by truck, reducing miles the cargo is moved, and second, the energy efficiency of rail, which is 3-4 times more energy efficient than trucking.

Maersk Warehousing & Distribution will be the exclusive operator of the Pacific Transload Express facility which integrates with the company’s 45 other locations in North America designed to offer a simple, seamless end-to-end customer experience.

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Logistics & Supply Chain

Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley

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Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley. Image: Ryder
Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley. Image: Ryder
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Ryder System, Inc., a leader in supply chain, dedicated transportation, and fleet management solutions, announces the establishment of Baton, A Ryder Technology Lab, based in Silicon Valley. Baton’s mission is to pioneer a suite of groundbreaking customer-facing technologies designed to revolutionize how Ryder’s customers interact with their transportation and supply chain networks. These technologies will digitize and optimize networks at a level not currently available in the industry and will prepare Ryder for the coming artificial intelligence wave.

“The establishment of a Silicon Valley-based technology lab is a natural evolution for Ryder, as we build on the $1.3 billion in strategic investments we’ve made over the past five years to develop, acquire, and invest in innovative technologies, products, and services that help make our customers’ logistics networks more efficient and resilient,” says Karen Jones, CMO and head of new product development for Ryder. “To build on that success, it’s paramount we continue to invest in recruiting the brightest technology minds out there and provide them with a startup environment where they have the space and freedom to create, along with the resources of a $12 billion company.”

Leading Ryder’s innovation lab are Andrew Berberick and Nate Robert, co-chief product and technology officers for Ryder. The two founded San Francisco-based startup Baton, which was known for the development of a proprietary logistics technology focused on optimizing transportation networks. Ryder initially invested in Baton’s Series A funding round and then acquired the startup last year.

“What piqued our interest in Ryder then, and what keeps us excited today, is the fact that it’s the only fully integrated port-to-door logistics provider in North America managing the complex supply chains of many of the world’s biggest and best-known brands. That gives Ryder tremendous perspective and reach, and as engineers, it provides us with the unique opportunity to tackle some of the largest and most daunting problems in the industry today, while preparing Ryder and its customers for the coming AI wave,” says Berberick.

Baton’s first challenge is to create a first-of-its-kind, AI-powered digital platform and optimization engine that facilitates a new, integrated approach to managing transportation networks for customers where seasonality and fluctuating demand inhibit the continuous use of resources.

“There is a massive amount of waste when supply chains do not communicate. We believe we can change that and bring deep transformation to an entire sector,” says Robert. “That’s why we’re now actively recruiting talented technologists from some of Silicon Valley’s most respected technology firms to help solve some of the most complex problems plaguing the nearly $2.5 trillion North American transportation and logistics industry. We’re looking for engineers excited by the challenge and who want the autonomy and nimbleness of a startup environment but with the power, reach, and stability of a highly respected industry titan.”

Berberick holds a bachelor’s and master’s degree from Stanford University and worked for Google, Accenture, and Mindtribe; Robert holds a bachelor’s degree from MIT and master’s degree from Stanford University and worked for BuildZoom and Bain & Company, prior to cofounding Baton. Other key members of the Baton technology lab bring experience from Apple, Meta, OpenAI, NASA Jet Propulsion Laboratory, Tesla, Loadsmart, Kinema Systems (acquired by Boston Dynamics), PlayStation, Zynga, and LinkedIn.

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Logistics & Supply Chain

Rail freight on track for record volumes at APM Terminals

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Rail freight on track for record volumes at APM Terminals. Image: APM Terminals
Rail freight on track for record volumes at APM Terminals. Image: APM Terminals
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Rail is acknowledged as the most fuel-efficient way to move freight over land, with a gallon of fuel stretching an average of 500 miles, according to the Association of American Railroads. In July this year the United States Environmental Protection Agency (EPA) endorsed the push for freight railroads, stating that the transport mode can play a key role in the solution to climate change.

That assessment is something that APM Terminals has been fully on board with for some time. We’re committed to raising the standards of responsibility by offering low or zero carbon solutions for customers and consumers through our decarbonisation efforts and increasing rail transport options.

Record loads in India

Take for example APM Terminals Pipavav, which has taken nearly 50,000 containers off the road to substantially reduce traffic congestion and pollution. Just last month the port handled 206 trains – the highest number this year so far, pulling significantly ahead of its previous loading record of 157 double stack trains in a month in 2020.

Carbon-conscious in the US

Pipavav is not an exception. A few months ago, our operations in Mobile Alabama announced a bumper $60 million rail expansion in response to demand from increasingly carbon-conscious customers.

According to EPA data, freight railroads account for just 0.5% of total US emissions and only 1.7% of transportation-related greenhouse gas emissions (GHG). Added to this, the Association of American Railroads (AAR) states: “Moving freight by rail instead of truck lowers GHG emissions by up to 75%, on average”.

Sustainability with speed

The benefits of rail extend even beyond important net zero targets, as APM Terminals Americas Head, Leo Huisman acknowledges: “Our customers are looking for expanded options for their supply chains so we are focusing on faster connections to rail providers into inland markets.” The APM Terminals Mobile rail facility will therefore enable faster rail loading and departures.

Eyes trained on the future

Customer demand for sustainable and fast transport in the US and India is mirrored in Europe, where our colleague Homam Mansour is keeping his sights on the future of intermodal transport in his role as Rail Planner in our Gothenburg terminal, Sweden. Under his watch, Gothenburg has set an ambition to never refuse extra trains. Says Mansour: “We kept this promise throughout 2022, receiving and handling 84 extra trains requested by our customers at short notice”.

The commitment to rail has seen the volume of containers transported by rail via APM Terminals Gothenburg increase by 13% this year compared to 2021. More than 55% of all goods now reach the port by rail.

At APM Terminals globally, we train our sights on customer-focused, environment-friendly, and speedy supply chain solutions, and those priorities will continue to gain momentum.

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Environment

Hapag-Lloyd partners with DB Schenker to decarbonise supply chains

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Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
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Hapag-Lloyd has entered into a partnership with DB Schenker for the purpose of decarbonising supply chains. Following the launch of “Ship Green” in May, the renowned logistics provider has selected Hapag-Lloyd’s sustainable transport solution as part of its sustainability initiatives.

DB Schenker and Hapag-Lloyd have signed an agreement for emission-reduced container transports with a waste- and residue-based biofuel. By end of 2023, DB Schenker plans to claim approximately 3,000 metric tonnes of carbon dioxide equivalent (CO2e) emissions avoidance. This is based on at least 1,000 tonnes of pure biofuel.

“We are excited about this new partnership with DB Schenker as we share the common goal of making logistics more sustainable. Collaborations like these set a clear signal in the industry and are another example of a step-by-step approach to further decarbonise supply chains”, said Henrik Schilling, Managing Director Global Commercial Development at Hapag-Lloyd.

“I am very pleased that together with Hapag-Lloyd we are setting another example for sustainability in our industry. This partnership further enlarges our global biofuel offer in ocean freight. With this commitment we are one step closer to our goal of becoming carbon-neutral”, said Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker.

Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transports. Based on biofuel, customers of Hapag-Lloyd can add Ship Green as an additional service to their existing bookings – thereby avoiding CO2e emissions. Using the so-called “Book & Claim” chain of custody, Hapag-Lloyd can attribute avoided emissions to all ocean-leg transports, regardless of the vessel and route used. Ship Green is available for all shipments containing standard, hardtop or tank equipment. By offering Ship Green, Hapag-Lloyd is continuing along its path towards achieving climate-neutral fleet operations by 2045.

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