On Monday, Nov. 20, CEVA Logistics, ENGIE, and SANEF -partners in the European Clean Transport Network (ECTN) Alliance- launched the proof of concept of the low-carbon, long-distance road transport network.

First announced in March, the Network’s pilot program covers a distance of more than 900 kilometers in France between Avignon and Lille, aiming to demonstrate the ECTN concept to facilitate the decarbonization of long-distance road freight transport. The concept would not require specific technological innovations, but rather relies on a network of terminals for low-carbon truck refueling and trailer exchange.

By providing transporters with a solution based on alternative energies to diesel for long-distance freight transport, the concept addresses shipping customers’ demands for decarbonizing their cargo flows, while also aligning with the growing need for energy transition.

“Relay Station” Network with 16 Trucks

The Alliance’s concept draws inspiration from the traditional “relay” concept by establishing relay stations equipped with electric charging stations and bioCNG refueling pumps for trucks along the existing highway network. At these relay stations, trailers are disconnected and reconnected to a new tractor unit and driver for the next segment for transport.

The test route between Avignon and Lille is divided into four segments between: Avignon (Vaucluse) – Lyon (Rhône) – Dijon (Côte-d’Or) – Sommesous (Marne) – Lille (Nord). Each truck completes two round trips per day between two of these relay stations. This daily round-trip principle on a defined road segment contributes to improving working conditions for truck drivers and making the profession more attractive by reducing the distance travelled between home and work.

Each member of the ECTN Alliance is contributing its expertise to the implementation of the pilot:

• CEVA established relay stations at its Avignon, Lyon, Dijon, and Lille branches and has set up a control tower in Valenciennes to supervise cargo flows and to monitor transit times and energy consumption
• ENGIE is installing and operating electric charging stations and biogas distribution pumps
• SANEF is hosting a relay station at its Sommesous service area.

Starting initially with four bioGNC trucks operated by F.D.E. Transports, the pilot will gradually expand to include 16 trucks, including 12 electric ones, and will welcome new transport partners and shippers. Ultimately, the program aims to enable the 16 semi-trailers to traverse the network five days a week—eight traveling northward from the Marseille-Avignon commercial area and eight others to travel southward from Lille.

Major names in commerce and industry, such as Intermarché Food Logistics and Heineken, are expressing their interest in the ECTN concept and are participating in the trial, entrusting some of their cargo flows to be transported through the ECTN network.

Open, cooperative development approach

The ECTN concept is designed to be open to various stakeholders, including trucking companies, truck drivers, shipping customers, energy suppliers, motorway operators, truck manufacturers, and public authorities. All stakeholders are invited to participate in the Network’s development and the proof of concept.

Processes and software tools will be developed and improved to transmit low-carbon traction certificates to customers with unprecedented precision and ensure real-time supervision of the complete system, including the 16 low-carbon trucks, six electric charging stations, and numerous bioCNG refueling stations.

Simultaneously, a feasibility study has been launched by a team of experts in logistics (CEVA), motorway management and operation (SANEF), and low-carbon, heavy-duty mobility (ENGIE), as well as experts from ENGIE Impact and Carbone 4. The study aims to model the entire concept as it might eventually be deployed across Europe. Expected in the coming months, the results will provide an estimate of the Network’s potential contribution to decarbonize long-distance road transport at the European level. The study will also outline the conditions that would enable the concept’s full implementation.

Luc Nadal, Managing Director of CEVA Logistics Europe, said, “The ECTN project has been more than two years in the making. By combining the skills and expertise of three major French companies, with the support of our partners and customers, we have brought together all the conditions needed to provide a concrete response to the critical challenge of decarbonizing road freight transport in Europe. When we see what is happening with the electric car, we can make that possible for heavy goods vehicles, with the support of European public authorities. This experiment is a first step towards a large-scale transformation of our industry, with considerable benefits for the environment.”

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A surge in e-commerce volumes from Hong Kong and China inflated global air cargo demand by +5% year-over-year in November as US and European consumers splashed out on low-cost products, but this growth failed to disguise the underlying subdued nature of the market nor quell concerns over its sustainability heading into 2024, according to the latest weekly market data analysis by Xeneta.

E-commerce behemoths Shein and Temu almost single-handedly accounted for the rise in air cargo volumes and rates out of Hong Kong and China last month, creating some welcome ‘havoc’ in an air cargo market devoid of a traditional peak season.

China to the US spot rates outpaced their October growth of +10%, climbing +11% month-over-month to USD 4.46 per kg. Air cargo spot rates from China to Europe followed a similar upward trend, rising to USD 3.96 per kg, up 9% from a month ago.

These increases contributed to an overall +7% month-on-month improvement in the global air cargo spot rate, which averaged USD 2.45 per kg in November, compared to +2% in October. Available capacity rose +3% year-on-year.

Demand slightly outpacing supply helped to push the global dynamic load factor to 60%, based on both volume and weight perspectives of cargo flown and capacity available, which is on a par with its corresponding level of a year ago.

The figures, however, need to be looked at in context due to comparison with the state of the global air cargo market in November 2022, says Niall van de Wouw, Xeneta’s Chief Airfreight Officer.

He said: “We don’t see November’s data as a fundamental shift in the economy nor the outlook for 2024 for the global air cargo market.

“Seasonality means volumes are up, admittedly slightly more than we expected, but the figures also look better than they really are because November last year was disappointing for airlines and forwarders alike. More than anything else, what we saw this November was air cargo’s growing dependency on e-commerce.”

Van de Wouw continued: “November’s growth was strongly influenced by ex-China volumes driven by two companies. You rarely have a conversation with an airline or forwarder right now that doesn’t reference Shein or Temu because these two e-commerce behemoths seem to be upsetting the market by themselves, supposedly accounting for some 80% of airfreight volumes ex-Hong Kong on certain days.

“In a tight market, you only need a slight imbalance to push rates up because of the ‘fear of missing out’ that we have referenced previously. This seems to be happening out of China and Hong Kong, which are experiencing quite a boost in rates.

“The big question is: how long can this last? Airfreight is a key part of the e-commerce model because it relies on speed. This need for capacity is creating quite a bit of havoc in the market – but this is a local shift and not a bellwether for a changing global economic tide. It is more related to US and European consumers buying more lower value goods from these vendors.

“The improvement is not being driven by an increase in shipments of higher value products, and this is a worry for airlines and forwarders. E-commerce produces big volumes but how can you, in a sustainable manner, deliver an $8 t-shirt to someone’s doorstep from China to the US and make money across the entire supply chain? Even the vendors delivering these goods question its long-term viability.”

Xeneta’s latest analysis of the general cargo market shows continuing weak demand, extending a downwards trend since the last week of September this year.

Aligned to this, global general cargo spot rates (valid for up to one month) have been staying below seasonal rates (valid for over one month). Under the backdrop of a still-subdued general cargo market, air cargo spot rates for outbound Asia markets grew at slower paces compared to their October levels, while the growth of Southeast Asia to both Europe and the US air cargo spot rates slowed down to 6% and 8%, reaching USD 2.66 per kg and USD 3.90 per kg respectively.

While air cargo spot rates from Europe to the US rose – up +10% month-over-month to USD 2.04 per kg in November – the increase was mainly driven by the reduction of belly capacity during carriers’ winter season.

Global airfreight capacity will likely continue to outpace market demand next year. This is due to anticipated weak consumer spending at least in H1 2024 and a continuing recovery in belly capacity for certain markets next year, boosted by improving passenger travel.

The Civil Aviation Administration of China, for example, expects international passenger flights to restore to 70% of their 2019 level in this winter season ending in March 2024, from the October level of 51%. And, the temporary visa exemption for citizens of five European countries starting from 1 December may accelerate passenger travel further and fuel the recovery of belly capacity between China and Europe.

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On November 28, 2023, the world’s first 100% Sustainable Aviation Fuel (SAF) transatlantic flight by a commercial airline successfully landed at New York JFK after its departure from London Heathrow. Kuehne+Nagel, a leader in sustainable logistics, actively engages in projects that encourage and promote the use of sustainable fuels within the logistics sector. As part of its efforts, Kuehne+Nagel secured the available cargo space on this SAF-powered flight and utilised the corresponding amount of SAF for the transported goods.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel responsible for Air Logistics comments: “This is a historic moment in our collective journey towards sustainable aviation and we are very proud to represent the air cargo industry on the world’s first 100% Sustainable Aviation Fuel transatlantic flight by a commercial airline. It is an honour to support this Virgin Atlantic led consortium, pushing the boundaries of decarbonisation in aviation.”

Kuehne+Nagel is committed to the science-based targets to decarbonise the logistics sector and drive the change towards a zero-carbon future. This flight represents the next step in sustainable aviation by demonstrating the potential of using SAF as a 100% drop-in replacement for fossil fuel.

The Virgin Atlantic led consortium, joint funded by the UK Department for Transport, includes Rolls Royce, Boeing, University of Sheffield, Imperial College London, and Rocky Mountain Institute.

The SAF used to power the two Rolls-Royce Trent 1000 engines on the Boeing 787 Dreamliner is produced by Hydroprocessed Esters and Fatty Acids (HEFA) and Synthetic Aromatic Kerosine (SAK) at an 88% SAF and 12% SAK blend ratio.

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International freight insurance provider, TT Club highlights the dangers to the marine environment of plastic pellet or nurdle spillage.  Those involved in the supply of what is a universal component of plastic materials must be more aware and take steps to ensure their safe carriage.

With the ever-increasing focus on care for the marine environment greater attention must be afforded to the particular risks associated with the transport of microplastic pellets. Commonly referred to as ‘nurdles’ these are the building blocks used in the production of most plastic products. Concerns about the universal use of secure packaging, as well as the stability of these receptacles, and their weight distribution within sea containers are mounting.

However, it is the consequences of a spillage that rank highest in the urgent requirement to minimise incidents involving these cargoes in transit. Typically measuring just a few millimetres in diameter the release of nurdles into the sea, other waterways or the environment in general can have severe ecological implications. Accumulating in the stomach of any creature consuming them they have a negative effect on nourishment.  Furthermore, nurdles have a unique chemical composition that enable the absorption of toxins, adding to risks to the food chain of creatures from fish to birds, and from microbes, insects, and small mammals.

“Some estimates count as many as one in ten containerised consignments experience some form of spillage,” comments TT’s Logistics Risk Manager, Josh Finch. “Additionally, packing of bulk road and rail tank containers, often undertaken outside, often incurs incidental spillages. A greater understanding of the risks involved in handling and transporting these products is required.  At TT, we are both raising awareness and offering advice particularly on appropriate packaging and container packing that minimises cargo shifting and split packaging resulting in spillages.”

There are a variety of packaging methods utilised, each with its own characteristics and benefits.  These range from tank and dry bulk containers, cardboard boxes with plastic linings, polypropylene or cloth bags and sacks, and intermediate bulk containers and drums. Advisory information produced by TT covers the chief risk cause of stability of the cargo within such packaging as well as emphasis on the correct weight distribution to reduce movement during sea voyages in particular. Load restraint recommendations are made along with manual handling procedures and other risk mitigation measures.

“There are no easy solutions to the challenges of safely transporting nurdles,” concludes Finch. “Tank containers are viewed as costly, while bags split and shift in transit.  However, it is important to emphasise that the risks to safety are not commonly understood, and that the environmental repercussions of spillages are a danger throughout the supply chain – on land and for the oceans.  As the industry considers, particularly at the IMO, how to address these issues, a proactive approach to risk mitigation is advisable.”

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Arvato is further expanding its collaboration with Rituals Cosmetics and, for the first time, is also taking over the logistics for the lifestyle brand’s store business in Germany. The Rituals stores will be supplied centrally from the site in Düren (North Rhine-Westphalia), which has a total of 110,000 square meters of logistics space.

“Rituals and Arvato have already been working together successfully for many years. Our partner Arvato handles the logistics for the e-commerce business in numerous countries,” says Mark Hoppenbrouwers, Director Supply Chain at Rituals Cosmetics. “We are pleased that we have now been able to extend this cooperation to our B2B business for the first time.” Services include warehousing, picking and distribution of products throughout Germany, the company’s most important market in Europe. The Rituals stores and the shop-in-shops in the stores of the retail companies Douglas, Breuninger and Galeria Karstadt Kaufhof are supplied from Düren.

“In Düren, we use a complete hall module with around 11,000 square meters of space for Rituals’ B2B business,” says Jan van Meerbeck, Vice President Consumer Products at Arvato. An entire hall was adapted to the requirements of the new operations. For example, wide-aisle shelving was installed, and a cage storage area was set up for aerosol-containing products such as deodorants. The goods stored and picked in Düren cover the entire range of products offered by Rituals, with more than 2,000 different items. “Annually, we are planning with 3.75 million full cartons of ordered products, which we deliver to the Rituals stores individually or as full and partial pallets,” explains Jan van Meerbeck. While the stores are supplied with goods three times a week during normal business hours, the frequency increases to five times a week during peak times.

The logistics center, located between Cologne and Aachen directly on the A4 freeway, not only has very good transport links, but also reserve capacity for the Rituals business. “We have deliberately planned with room for further growth and can integrate additional volumes, if necessary,” says Jan van Meerbeck. “We have already proven this with the e-commerce business for Rituals, where we started the collaboration in 2014 with two packing tables in Venray, the Netherlands, and now handle online orders in Benelux, France, the D-A-CH region, Spain, Portugal, Italy, the UK, Poland, and other Eastern European countries, as well as the U.S. and Hong Kong, from several locations in our global network.”

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IRU, together with transport operators H.Essers and Samat and its Polish member ZMPD, met with European Commissioner Nicolas Schmit to discuss current experiences and practices regarding the employment of third-country drivers across the EU. The industry highlighted both positive and negative experiences, with a constructive focus on solutions to minimise negative cases.

The EU is already missing 500,000 professional drivers and it’s forecast to get much worse without significant action, in large part because less than 5% of drivers are under 25 years old. The ever-increasing shortage of drivers cannot be filled by local talent pools. Third-country drivers are needed to fill the gap.

IRU EU Advocacy Director Raluca Marian said, “Our focus first and foremost is to attract more local talent to the driver profession, including young people and women.

“However, given the extent of driver shortages in the EU, coupled with the fact that many drivers are nearing the age of retirement, we warmly welcome Commissioner Schmit’s interest in ensuring a positive experience for third-country drivers and finding solutions to support the harmonious application of EU transport rules. Collaboration between all stakeholders is crucial to prevent any abuses from taking place, both now and in the future.”

The transport company executives present during the meeting – Bob Van Steenweghen (H.Essers), Florence Dupasquier (Samat), Mike Dautzenberg (H.Essers) – shared their companies’ best practices for the recruitment of third-country drivers and their working conditions. IRU member ZMPD offered an overview of how third-country drivers are registered and treated in Poland.

“An obvious conclusion is that EU transport operators are already employing a significant number of third-county drivers throughout the EU and that negative experiences cannot be generalised. Companies like those present at the meeting today employ and treat third-country drivers like any EU driver. However, negative experiences in the market cannot be ignored and we are happy to rely on Commissioner Schmit’s support to find solutions,” said Raluca Marian.

As an immediate action, IRU welcomes official channels for the integration of third-country nationals in the EU, such as the EU project on third-country workers that the European Commission will launch soon, supported by Commissioner Schmit.

Furthermore, the development of an EU harmonised and transparent scheme to recognise third-country professional drivers’ skills and certificates, provided that they meet EU driver training and road safety standards, is a crucial step to ensure the recognition of their skills and rights across all Member States. Such measures would mitigate the risk of exploitation and mistreatment of third-country drivers.

“We also particularly appreciate Commissioner Schmit’s practical position on a very important aspect of drivers’ working conditions: the remuneration of drivers posted outside of their EU home country. Confronted with 27 different remuneration systems for road transport, international carriers have difficulties understanding how to pay their employees when they drive throughout the EU. Commissioner Schmit’s openness to a potential EU remuneration calculator for posted drivers is highly appreciated,” concluded Raluca Marian.

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Kuehne+Nagel has introduced three new charter connections between the Americas, Europe, and Asia. Starting on October 23, Kuehne+Nagel’s own freighter, the B747-8 “Inspire.”, conducts two additional weekly routings from Atlanta and Chicago to Amsterdam and from there to Taipei.

This flight will serve key industries such as healthcare, perishables and semicon. As one of the world’s leading microchip manufacturers, Taiwan accounts for approximately 20% of the global semiconductor industry. By connecting Taiwan with the Benelux region, Kuehne+Nagel can offer fully owned and controlled capacity for its semiconductor customers while adhering to the strictest quality standards. Earlier this year, Kuehne+Nagel announced their SemiconChain quality standard in response to the market’s increased need for secure and reliable semiconductors transportation.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel responsible for Air Logistics comments: “Developing and offering logistics solutions for the semiconductor industry is part of our strategic Roadmap 2026. By introducing these three new connections, we can support our customers better and facilitate future growth in the sector.”

From now on, the B747-8 freighter connects the three regions through around-the-world flights as part of its regular schedule.

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Global logistics provider GEODIS has officially started the operation of its new 5500 sqm site in Schiphol on October 6th. Services to the pharma and healthcare sectors will be provided.

This new location is next to the existing site and will expand GEODIS’ footprint in pharma & healthcare, which is already well-established at the logistics operator’s Venlo site with a significant presence in contract logistics for customers in both sectors. The new Schiphol-Rijk investment will focus on freight forwarding and be part of GEODIS’ worldwide cross docking network for ambient and cold chain products.

The new location is TAPA-A rated for air freight and holds the appropriate CEIV Pharma certification for handling goods in the 15-25 °C and 2-8 °C ranges.

“Opening an additional specialized warehouse at Schiphol-Rijk enables us to offer customers a turnkey solution for pharma & healthcare logistics,” says Mark van den Assem, Managing Director GEODIS Benelux. “Increasing the synergy between our Contract Logistics and Freight Forwarding lines of business is a crucial part of our growth strategy and will have significant benefits to the supply chain needs of our customers”.

CEIV Pharma Certification is a  globally consistent and recognized pharmaceutical product handling certification to ensure the international and national compliance to safeguard product integrity while addressing specific air cargo needs.

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Kuehne+Nagel and SATS Ltd (“SATS“) recently signed a Memorandum of Understanding (MoU) to enter into a strategic collaboration to drive value chain improvements and sustainability efforts within the air logistics industry.

Together, the two companies have initially collaborated on several successful Proofs of Concept to optimise ground handling for e-commerce shipments, air charter hub and spoke operations, as well as to improve shipment visibility and cargo processing speeds for time-critical shipments. The aim of the collaboration between Kuehne+Nagel and SATS, which acquired Worldwide Flight Services (WFS) in April 2023, the world’s largest air cargo logistics provider, is to co-develop and implement solutions for customers throughout Asia, Europe and North America. The first Proofs of Concept have produced encouraging results, demonstrating time savings and reducing touchpoints for Kuehne+Nagel shipments at SATS’ airside facilities.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel responsible for Air Logistics commented: “Collaboration is at the heart of what we do at Kuehne+Nagel and we are very excited to partner with SATS. By leveraging our combined expertise and global footprints we improve our service offering and continue to create value for customers around the world.”

“We are always looking at ways to bring extra value to our customers to serve them better, and to benefit from the new opportunities our growing global network offers. Kuehne+Nagel shares this progressive approach and this is why our companies are moving from a conventional customer-vendor relationship to a strategic collaboration to drive improvements and efficiencies in the supply chain,” said Kerry Mok, President and Chief Executive Officer of SATS.

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SLA Logistics, a prominent logistics titan based in Dubai, has announced its ambitious expansion drive into the European market, with a special focus on Greece. Recognized as a complete global logistics provider, SLA Logistics is poised to redefine the logistic landscapes of Europe, blending Middle Eastern efficiency with European precision.

At the heart of SLA Logistics’ success lies its comprehensive suite of solutions. From warehousing to storage, distribution to custom clearance, SLA Logistics manages it all under one roof. Their in-house fleet management ensures timely and secure deliveries, a critical aspect in today’s just-in-time world. The company’s extensive experience in the Middle East positions them uniquely to assist European companies and partners in tapping into the booming Middle Eastern markets.

But what truly sets SLA Logistics apart is its plethora of storage solutions, tailored to suit varying business needs. Whether you’re a startup looking for short-term storage or an established conglomerate seeking vast warehousing spaces, SLA Logistics promises to deliver.

For Greek businesses eyeing global expansion, SLA Logistics offers a golden ticket. By streamlining their logistics operations through SLA, Greek companies can access world-class facilities, unparalleled service, and a gateway to the bustling markets of the Middle East and beyond.

“Our commitment to Greece and the broader European market is unwavering,” commented Mohammed Shahid, MD of the company . “We envision a partnership where Greek businesses leverage our global logistics expertise to make inroads not only in the Middle East but worldwide.”

For Greek logistics providers and businesses, the entry of SLA Logistics offers a promising alliance. Their arrival heralds a new era of global partnerships, fused with local insights. As Europe continues to evolve its trade dynamics, companies like SLA Logistics will undoubtedly be at the forefront, leading the charge and forging paths into new markets.

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