Tuesday, December 5, 2017

Freight Forwarder and Container Shipping Line to Cut Carbon Dioxide Emissions

News of Finalised Merger as Two Logistics Giants Tie Up Climate Change Deal
Shipping News Feature
WORLDWIDE – Two of Europe's biggest logistics groups, container line Hapag-Lloyd and freight forwarder Kuehne + Nagel, have committed themselves to significantly reduce carbon dioxide emissions in their common container-transport activities. The Carbon and Sustainability Pact that both companies concluded in the last few days calls for a 17% reduction in CO2 emissions per container moved by Hapag-Lloyd by 2020 compared to 2017.

The agreement between the pair also allows for potential for additional reductions on selected routes and in the pact both companies state that they ‘want to take advantage of this unique opportunity to influence the logistics sector.’ In doing so, the two companies particularly wish to give Kuehne + Nagel customers options based on transparent data. Hapag-Lloyd will thus make it possible for Kuehne + Nagel to use information about the CO2 emissions of the ships in Hapag-Lloyd’s fleet, which has previously been verified by the independent Clean Cargo Working Group (CCWG), in its communications with customers.

Both companies have also committed themselves to a series of additional actions to better protect the environment. For example, there are plans to optimise the movement of empty containers as well as to identify alternatives to truck transports using ships or trains. In addition, there are also plans to use the most modern and eco-friendly reefer equipment whenever possible as well as to use containers with steel rather than wooden floors where appropriate.

Last week Hapag-Lloyd completed the merger with the United Arab Shipping Company (UASC) originally announced in May, with all systems including IT, successfully integrated into one unit. The resultant box line now forms the fifth largest container carrier in the world and claims synergies by 2019 will result in a saving of $435 million. Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said:

“Thanks to the very good cooperation of our teams we have managed to successfully implement this integration in just six months. In the process, our extensive experience from earlier mergers, such as with CP Ships in 2005 and with CSAV in 2014, helped us a lot. Already in 2018, we will benefit from the merger of the two shipping companies due to significant cost reductions.”