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DB Schenker expands its green ocean freight services

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DB Schenker expands its green ocean freight services. Image: DB Schenker
DB Schenker expands its green ocean freight services. Image: DB Schenker
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DB Schenker is expanding its green ocean freight services and has secured an arrangement to use 12,000 metric tons of biofuel component for all of its own consolidated cargo, less-than-container load, full-container-load and refrigerated containers, from MSC Mediterranean Shipping Company, the world’s largest container line.

The amount of biofuel purchased is enough to save an additional 35,000 metric tons of CO2 equivalents along the entire production chain in the market. The equivalent of around 30,000 standard containers may be shipped with net-zero CO2 emissions, depending on how the fuel is used during navigation.

The purchase agreement signed this month represents one of the largest carbon-insetting biofuel deals between a freight forwarder and a shipping company. It sets out the use of certified sustainable, second-generation biofuels – derived from used cooking oil – instead of conventional fossil-based marine fuel. The 12,000 metric tons of biofuel component will be blended between 20 and 30%, resulting in approximately 50,000 metric tons of blended biofuel to be used in MSC’s container ships. The agreement allows DB Schenker to offer its customers an off-the-shelf product that enables net-zero ocean transport.

Certified emission reduction for customers’ carbon footprint

This partnership is the latest impressive example of DB Schenker’s commitment to clean logistics and is another solid contribution to increasing the demand for alternative fuels in the industry. Similar to net-zero flights using sustainable aviation fuel, customers can now book regular net-zero ocean transport and receive an annual certificate of their emission reduction for their carbon footprint. The latter means that every metric ton of biofuel is bunkered in addition to any legal mandate and carrier’s set fuel purchase orders.

Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker: “Together with MSC, we are offering our customers a convenient and clean solution using the latest generation of marine biofuel to help them achieve a real additional reduction in their emissions. We are doing this because we firmly believe it is the right thing to do and are therefore paying for biofuel purchases in advance. One thing is certain: the more customers demand climate neutrality throughout supply chains, the faster we achieve clean container ocean freight.”

Caroline Becquart, Senior Vice President of MSC: “Decarbonizing ocean freight cannot be achieved by a single player and requires collaboration between shipping and logistics companies and their customers. MSC Biofuel Solution is our first certified carbon insetting program that reduces emissions in our customers’ supply chains, accelerating the energy transition by creating demand for net-zero-carbon shipping and delivering direct CO2 savings. We’re delighted to partner with DB Schenker, with whom we share similar climate ambitions along our collective journey to net zero.”

Biofuel can be used for regular ocean freight operations without adjusting a ship’s infrastructure or supply chain, making it a particularly convenient solution. MSC Biofuel Solution is designed to be a win-win approach to move from ambition to action. MSC bunkers sustainable biofuel, and clients benefit from the CO2 savings, passing them on throughout the shipping value chain. This differentiates the program from carbon offsetting initiatives that focus on future emission reductions outside the shipping industry.

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Environment

Port of Oakland approves plan for green upgrades at key terminal, TraPac

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Port of Oakland approves plan for green upgrades at key terminal, TraPac. Image: Pixabay
Port of Oakland approves plan for green upgrades at key terminal, TraPac. Image: Pixabay
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The Oakland Board of Port Commissioners approved an ordinance that will make huge strides in reducing emissions from cargo handling equipment at TraPac, a key marine terminal at the Oakland Seaport.

Port Commissioners unanimously voted to amend terminal operator TraPac’s lease to include green upgrades to cargo handling equipment at its terminal facilities.

“This is a vital step towards our plan to become a zero-emissions seaport,” said Port Board President Barbara Leslie. “These investments in hybrid cargo handling equipment will cut diesel emissions by 95 percent.”

TraPac will retrofit three rubber-tired gantry cranes (RTGs), converting them from diesel fuel to hybrid-diesel fuel, reducing emissions from this equipment by 95%. This transformation will take place by the end of 2024, subject to Trapac securing grant funding.

“This landmark lease agreement will bring the port closer to its goal of achieving zero emissions operations,” said Port Executive Director Danny Wan. “We have multiple projects underway that are modernizing the seaport and building the Port of Oakland into a hub of zero emissions innovations.”

TraPac will also purchase four new hybrid RTGs by the end of 2024, which will similarly reduce emissions by 95%.

“We appreciate the fact that our tenant, TraPac, is collaborating with us on the large investments needed to implement these major changes in cargo handling equipment,” said Port of Oakland Maritime Director Bryan Brandes. “Oakland is an efficient and convenient seaport for importers and exporters and TraPac is stepping up by going green.”

The Port of Oakland is providing a financial incentive for TraPac. It will reimburse TraPac up to 35%, or $945,000 – whichever is less – for the cost of the RTG retrofits. While TraPac, alone, will finance the cost of the four new hybrid RTGs.

The passage of this legislation is significant because it is the first time a terminal operator has been called upon in a Port of Oakland lease agreement to upgrade cargo handling equipment to significantly reduce emissions.

TraPac has been operating at the Port of Oakland since 1991. The company underwent a two-year expansion project beginning in 2016 that nearly doubled its footprint at the port. TraPac’s latest investment highlights their confidence in the Port of Oakland as they invest in long-term success through upgrades of their facilities and equipment.

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DHL introduces its first truck fleet running on biofuel to support Formula 1

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DHL introduces its first truck fleet running on biofuel to support Formula 1. Image: DHL
DHL introduces its first truck fleet running on biofuel to support Formula 1. Image: DHL
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DHL and Formula 1 are taking sustainable logistics to new heights within their partnership for the last years with a new initiative this season. DHL is introducing its first truck fleet running on biofuel, deploying 18 new trucks this season to support Formula 1 in its goal of becoming Net Zero by 2030. The new trucks, capable of running on HVO100 drop-in fuel, will be delivering at all European Formula 1 races in 2023. By doing so, each truck can reduce carbon emissions of minimum 60% when compared to standard fuels, with great potential for higher savings.

“Our partnership with Formula 1 also showcases our shared dedication to sustainability and reducing our carbon footprint. We consistently strive to make logistics more sustainable, and we are excited to introduce the inaugural fleet of trucks, running on a sustainable fuel this year,” says Arjan Sissing, Head of Global Brand Marketing at Deutsche Post DHL Group. “As an industry leader in green logistics, the 18 trucks further contribute to a lower emission DHL fleet, where we show to our fans and customers that it is possible to bring the excitement of Formula 1 races around the world in a sustainable way.”

The new trucks reduce carbon emissions while maintaining the same level of performance in terms of load capacity and travel distance as their diesel counterparts. Also, the handling of biofuel is safer than bunkering diesel from an environmental and security perspective. Paul Fowler, Head of DHL Motorsports Logistics adds: “Each truck can therefore transport up to 40 tons and travel up to 3,500 kilometers per 1,000 liter tank. For the European F1 leg the trucks run entirely on HVO100, which is a second-generation biofuel, meeting the standard EN15940 for paraffin fuels, as well as a drop-in fuel.” By using HVO100, Deutsche Post DHL Group adheres to the EU’s Renewable Energy Directive. Due to their significant sustainability impact, DHL and Formula 1 are planning to expand the use of these sustainably powered trucks in the coming years, as part of their ongoing efforts to minimize their environmental footprint.

“We operate on a global scale and DHL plays a critical role in delivering the races and helping us address the logistical impact we have as a World Championship” says Ellen Jones, Head of ESG at Formula 1. “Together we are continually looking for more sustainable solutions, and through innovations such as the biofueled trucks we’re able to take significant steps forward in reducing our carbon emissions and achieving our sustainability goal of being Net Zero by 2030. It is wonderful to see partners like DHL share the same drive and commitment to creating a more sustainable Formula 1.”

Creating a more environmentally sustainable future has been a key part of the partnership and DHL and F1 have actively taken steps to reduce their carbon footprint. This includes testing more advanced technologies for the future, leveraging multimodal transport solutions, including overland and ocean freight, and using more Boeing 777 aircrafts, which reduce carbon emissions by 18% compared to traditional aircraft, the 747. DHL also equips its trucks with GPS to monitor fuel consumption and optimize routes. This season, the DHL motorsport team will cover around 150,000km, transporting up to 1,400 tons of freight per race. In addition to the race cars, tires, spare parts, and fuel, broadcasting and hospitality equipment are also transported to the desired destination. DHL also provides comprehensive track and trace of the cargo while in transit, as well as custom brokerage, pickup, and customs clearance services.

As part of Deutsche Post DHL Group’s Sustainability Roadmap to accelerate sustainable business by 2030, the company is investing €7 billion in clean logistics operations to reduce emissions. The funds will focus on sustainable aviation fuels, road fleet electrification, and climate-neutral building design. The introduction of sustainable fuels on long haul road transport is also included in this investment plan.

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MOL establishes MOL Switch to develop decarbonization technologies

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MOL establishes MOL Switch to develop decarbonization technologies. Image: MOL
MOL establishes MOL Switch to develop decarbonization technologies. Image: MOL
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Mitsui O.S.K. Lines, Ltd. announced that it has established its wholly indirectly owned new company in the USA, called MOL Switch LLC to invest in startups developing decarbonizing technologies in the energy sector. MOL Switch will invest USD 100 million in total over the next 3 years.

MOL Switch aims to access innovation, build new networks, explore new business opportunities, and expand our human capital by investing in startups developing technologies and business models that help decarbonize our group companies and society. MOL Switch will invest in the Climate Tech field, including technologies related to next-generation clean energy, carbon removal, and storage batteries. Climate Tech is defined as technologies that are focused on reducing GHG emissions or addressing the impacts of climate change.

MOL positions the environmental strategy as one of the main strategies in its new management plan, “BLUE ACTION 2035” and set a group-wide goal of achieving Net Zero Emissions by 2050 under “MOL Group Environmental Vision 2.2.” Through the investment activities by MOL Switch, MOL group aims to create a new added value by combining the new ideas and technologies of the startups with our resources and to realize decarbonization not only for our group companies but also society.

MOL Switch Company Profile

Company name MOL Switch
Address State of California, USA
(A new office is planned to be open around August 2023)
Representative Tomoaki Ichida
Establishment May 2023
Business Investment in venture capital funds and startups
Investment ceiling USD 100 million
Shareholders Wholly owned by MOL (Americas) Holdings, Inc.
For further information, please contact: E-mail; molswitch@molgroup.com

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