DSV and Schneider Electric launch green multimodal shipping model
30 / 01 / 2024
Photo: Scharfsinn/ Shutterstock
DSV and energy firm Schneider Electric have launched an “industry-first” multimodal shipping model using sustainable aviation fuel (SAF) to help green the supply chain.
Together with Schneider Electric, freight forwarder DSV has deployed multimodal shipping bridges between Singapore and France and Shanghai and France that reduce Scope 3 carbon emissions from the airfreight part of the journey.
Schneider Electric estimates that these bridges, by using a combination of air and sea transport, will reduce the carbon emissions of these regional shipment lanes by up to 40%.
DSV said that since the start of the pilot in March last year, Schneider Electric has “converted 50% of airfreight tons to the multi-modal model on the Singapore to France bridge”, operated in partnership with DSV. This resulted in up to 40% fewer carbon emissions, said DSV.
The company noted that using a multimodal model means that the cost savings from sending shipments by sea can be used to purchase SAF.
In total, Schneider Electric plans to design and execute eight global multimodal bridges with its logistics partners that can be deployed on demand.
“Multimodal shipping is widely used in the supply chain industry to support business continuity. However, it has not so far been used to reduce a company’s Scope 3 carbon emissions,” said DSV.
“Schneider Electric’s new pilot schemes have allowed partners to test multi-modal shipping as a business-as-usual process on demand. Orders are delivered with agility and flexibility, either by air freight or multi-modal shipping, depending on capacity, air surges, margins, customer offers, and stock availability.”
DSV added that with the use of SAF, the partners aim for the delivery path to be “90% carbon neutral and self-sustaining”.
“DSV and Schneider Electric both have strong commitments when it comes to sustainability and so we are thrilled to partner with them on this ambitious pilot,” said Jakob Jeppesen, executive vice president Air & Sea APAC at DSV.
“By working together, we are able to optimise Schneider’s supply chain and support their decarbonisation reduction goals, and we hope that this project will strengthen our existing partnership and lead to further collaboration on other new sustainability initiatives in the near future.”
“At Schneider Electric, sustainability is at the core of our mission, and it drives us to innovate for the future,” said Mourad Tamoud, executive vice president Global Supply Chain at Schneider Electric.
“We can’t do this alone: partnerships with our supply chain ecosystem and strategic partners like DSV are essential. We hope others are inspired by these possibilities, so we can collectively reduce carbon emissions.”
DSV and Saudi Arabia’s NEOM establish $10bn logistics joint venture
