DHL and Schneider Electric Co...

DHL and Schneider Electric Collaborate on Groundbreaking Multi-Modal Shipping Initiative

Feb 01, 2024
DHL and Schneider Electric Collaborate on Groundbreaking Multi-Modal Shipping Initiative

(Image Source: DHL Group)

In a groundbreaking partnership, DHL Global Forwarding, the freight specialist arm of DHL Group, has joined forces with Schneider Electric, a leader in the digital transformation of energy management and automation. Together, they have designed and launched an industry-first multi-modal shipping model aimed at enhancing supply chain agility and reducing environmental impact through the use of sustainable aviation fuels (SAFs).

The collaboration has successfully implemented two innovative multi-modal shipping bridges, connecting Singapore to North America and India to North America. These bridges are strategically designed to decrease Scope 3 carbon emissions associated with air freight. Schneider Electric, in collaboration with its logistics partners, plans to deploy a total of eight global multi-modal bridges that can be activated on demand.

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By leveraging a combination of air and sea transport, Schneider Electric estimates that these bridges will reduce carbon emissions on regional shipment lanes by up to 40% compared to traditional air fulfillment methods. The pilot schemes, launched in March 2023, have demonstrated a significant reduction of up to 20% in carbon emissions for both the Singapore to North America and India to North America bridges.

Recognizing the environmental impact of air freight, DHL Global Forwarding and Schneider Electric have strategically incorporated SAF into their model. Although SAF is more expensive than conventional jet fuel, the initiative aims to offset costs by utilizing cost-effective sea freight, redirecting savings to the purchase of SAF and further reducing carbon emissions.

While multi-modal shipping is a common practice in the supply chain industry for business continuity, the collaboration between Schneider Electric and DHL Global Forwarding marks a unique approach in targeting Scope 3 carbon emissions reduction. The pilot schemes have tested multi-modal shipping as a routine process on demand, offering enhanced agility and flexibility in deliveries.

DHL Global Forwarding's GoGreen Plus service is integral to the initiative, providing sustainable transport solutions, including the use of SAF. Thomas George, Chief Commercial Officer at DHL Global Forwarding, highlighted the company's commitment to reducing GHG emissions, stating, "At DHL, we have set a goal to reduce GHG emissions to 29 million tonnes CO₂e by 2030."

Mourad Tamoud, EVP Global Supply Chain at Schneider Electric, emphasized the importance of partnerships, stating, "We can’t do this alone: partnerships with our supply chain ecosystem and strategic partners like DHL are essential."

According to Schneider Electric's net-zero roadmap, validated by the Science Based Targets initiative, the company is committed to being net-zero ready across its operations, with an absolute carbon reduction target of 25% across the entire value chain by 2030.

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