Listen to the story (FreightComms AudioPost)
Speaking at a Zero Emission Fleet Workshop in Phoenix, Arizona in January 2023, Maersk executives outlined what’s important in the Electrical Vehicle journey for customers to know as they plan for sustainable supply chains.
The first requirement is management commitment to the decarbonization goal of net zero and the long-term investment in its multi-year effort. In 2018, Maersk committed to Net Zero Green House Gas emissions by 2050. Last year, that date was accelerated by 10 years to 2040 across all modes and businesses as part of a comprehensive Environmental, Social Governance (ESG) plan. In March 2022, Maersk North America ordered 436 Electrical vehicles (Class 8 trucks) to replace diesel trucks. Decarbonizing inland transportation through heavy duty, electric trucks and the creation of charging station infrastructure benefits supply chains and communities, and is central to Maersk’s inland transportation ESG plans.
“By using Class 8 electric trucks, we will be reducing traffic noise and emissions in the communities we serve to fully comply with upcoming regulations. Our goal in the near future is for Maersk North America to be charging our entire fleet with 100 percent renewable electricity to offer our customers an environmentally-friendly alternative for short-haul trucking.” said Carlo Bertani, Maersk’s North America Environmental Manager.
The second requirement in EV operations is the ability to scale and look for partners. Maersk partnered with TEC Equipment – a Volvo Trucks’ Certified EV Dealership, who helped identify the ideal truck configurations needed to operate daily freight routes. This partnership allowed Maersk to leverage Volvo Trucks’ Electric Performance Generator (EPG) tool, which simulates real-world routes and determines which ones are best suited based on environmental factors such as route details, traffic patterns, speed, payload, terrain and ambient temperature. The EPG also considers if an opportunity charge (the optimal location for charging infrastructure) would be required. Volvo Trucks turnkey solution is used for the first six years of ownership that provides 24/7 support, scheduled and preventative maintenance, towing and vehicle repair (including the energy storage unit and the complete electromobility system) to ensure peak vehicle uptime, performance and productivity.
“Both Volvo Trucks and TEC Equipment continue to go above and beyond to support our growing battery-electric fleet operations. One example is the ongoing training they are providing to help our drivers optimize the range of the Volvo VNR Electric, including how to leverage regenerative braking benefits to add power back to the battery.” commented Michael Gallagher, Head of Indirect Sourcing, North America, at Maersk North America.
One of the challenges with the operation of Class 8 EVs is the lack of charging infrastructure. To mitigate this, Maersk is working cooperatively with public utilities and local officials to ensure that charging infrastructure is built in strategically-placed locations to maximize the efficiency of trucking operations. The company also worked with their warehouse leasing partner’s mobility unit, Prologis Mobility, to combine electric charging infrastructure into existing warehouse facilities to optimize truck deployment.
To comply with future regulations, Federal, State and Local funding incentives are aimed at accelerating scalability of EVs. EVs and battery performance are still in the early years of adoption and do not come without challenges. The cost of an electric vehicle is 2-3x more than a diesel vehicle and while battery performance will evolve to improve in duration and weight reduction, the reality is that early adopters of the technology are working to determine the best path forward. For example, current battery technology averages 275 miles on a full charge and a battery can add >6000 lbs. of extra weight to a truck. Charging time depends on the battery’s state of charge, the charging rate of the dispenser and the truck’s ability to accept a certain rate of charge. Initial charging times are approximately 75 minutes but are improving over time.
Regulatory compliance with climate change goals in California and New York are bringing new mandates for all new trucks to be zero emissions by 2045. The State of California has a target of 100 percent of passenger and light-duty truck sales to be zero emissions by 2035, medium and heavy-duty trucks by 2045.
Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley
Listen to the story (FreightComms AudioPost)
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.
Rail freight on track for record volumes at APM Terminals
Listen to the story (FreightComms AudioPost)
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.
Hapag-Lloyd partners with DB Schenker to decarbonise supply chains
Listen to the story (FreightComms AudioPost)
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.