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Category: Logistics

Retail News Asia is committed to providing both local and global retailers with the latest Logistics news throughout the Asian market. This on a daily base.

  • Port operators want container fee raised

    Port operators want container fee raised

    Seaport operators want the government to increase its terminal handling charge as they claim they lose billions of dollars annually at the current level, which is lowest in Southeast Asia.

    In a proposal to the government by the Private Sector Development Committee, port operators say that the current terminal handling charge (THC) in Vietnam is only 40-50% that of other countries in the region.

    Le Quang Trung, Deputy Chairman of the Vietnam Logistics Association, said that international shipping firms collect a THC of $140 per 20-foot container from their customers, but only pay Vietnamese seaport operators $45-52, or 37% of the total.

    Cambodian port operators, however, get as much as $90 per container, and operators in Singapore receive $115.

    According to international norms, 80% of the THC must go to the port operator, and therefore Vietnamese operators should get $80-100 per container instead of $45-52 as current, Trung said.

    Port operators have therefore proposed that the Ministry of Industry and Trade raise the THC in Vietnam gradually to reach the same level as other regional countries.

    A 15-20% increase annually for four or five years will bring THC in Vietnam to the regional average of $101 per container.

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  • Sanctions hit Vietnamese exports to Russia

    Sanctions hit Vietnamese exports to Russia

    Vietnam’s exports to Russia fell by nearly 60% year-on-year to US$205 million in the first two months of this year.

    Iron and steel, footwear and electronics exports almost came to a halt while those of agriculture produce like rice, vegetables and seafood fell by 20-50%, according to the Vietnam Trade Office in Russia.

    Rubber, garment and coffee were the only items whose exports increased.

    The ongoing Russia-Ukraine war is said to be the main cause as sanctions on Russia limit its trade with other countries, including Vietnam.

    Major shipping firms and airlines have stopped their Russia operations, and so Vietnamese business have trouble sending goods to the country.

    Bilateral trade fell by nearly 62% to $402 million.

    The trade office said Russian businesses are increasingly interested in establishing trade partnership with their Vietnamese counterparts, and the number of Russian companies participating in Vietnam’s fairs and exhibitions is rising.

    Many Russian retailers want to sell agricultural products, clothes and footwear from Vietnam, it added.

  • Air cargo transport plunges

    Air cargo transport plunges

    Aviation cargo transport passing through Vietnam’s airports dropped 28.2% year-on-year in the first two months of 2023 to 168,000 tons, according to the Civil Aviation Authority of Vietnam (CAAV).

    Industry insiders say that the spreading global economic recession has led to a decline in consumption. Although China has reopened its economy, the delivery of Chinese materials and goods to other countries has not fully resumed yet.

    Do Xuan Quang, deputy CEO of Vietjet Air, said that the ongoing Russia-Ukraine war is also limiting global deliveries even though shipping costs have dropped.

    Vietjet Air has seen its cargo transport fall from nearly 100,000 tons in previous years to around 65,000 tons last year, Quang told VnExpress.

    Vietnam Airlines Group transport in the first two months also declined from the same period in recent years. The company did not reveal by how much.

    A representative of an air cargo transportation company, who asked not be identified, said that in the first two months of the year delivery from Vietnam to Japan plunged 20% year-on-year.

    Other routes that the company operates still have not recovered from Covid-19.

    Data from the CAAV shows that domestic cargo in the first two months rose slightly year-on-year to 51,000 tons, while international cargo fell 37.3% to 117,000 tons.

    Domestic airlines delivered only 42,500 tons in the period, down 14.2 % year-on-year.

    The Vietnam Logistics Association (VLA) expects air cargo transport in Vietnam to recover later this year, but slowly as there are many uncertainties in the global market.

    This is shown by transportation data from local logistics companies. The industry is capable of delivering 1.5-2 million tons a year but currently they are shipping only nearly 1 million tons.

    The busiest route in the country, HCMC to Hanoi, is operating at only one-third of cargo capacity.

    Dang Anh Tuan, a media representative of Vietnam Airlines, said that there is still a niche market for aviation transport, such as delivering high-end tech equipment.

    Vietnam’s cargo transport market is dominated by foreign airlines. There are 29 international carriers which are specialized in delivering cargo and they account for over 80% of market share.

    Vietnamese companies, however, are seeking to change that.

    Vietravel Airlines last year launched its own cargo carrier Vietravel Airlines Cargo in partnership with HCMC-based Asean Cargo Gateway.

    Earlier this year Bamboo Airways established Bamboo Airways Cargo.

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  • Sea shipping costs dip amid sliding demand

    Sea shipping costs dip amid sliding demand

    Sea shipping costs have plunged by over 80% from the previous peak as consumption has dropped amid inflation concerns. Tran Lam Son, CEO of wood and furniture exporter Thien Minh, said that shipping a container to Europe now costs around $1,700, down nearly 92% from the peak of $20,000 a couple of years ago.

    The price drop poses opportunities for businesses like Thien Minh but is perceived as a negative sign for the logistics sector.

    Logistics platform Phaata has data showing that shipping a 40-foot container from Ho Chi Minh City to Northern Europe now costs $1,700, down from $15,000 in January.

    From HCMC to Los Angeles, the average price is now $1,400, compared to $12,000 in September 2021. To New York, freight costs $2,900 against $15,000 two years ago.

    From Asia to India costs have plunged by over 90%, said Le Thi Lan Anh, business director of logistics firm MH Great Sun.

    Phaata CEO Nguyen Hoai Chung said that prices are now plunging because consumer demand in North America and Europe has plummeted due to inflation and forecasts of economic difficulties.

    Inventory in these regions is still high and so importers do not need to buy more from Asian countries, including Vietnam, he added.

    Slower manufacturing activity in China in recent years has reduced pressure in ports and congestion is no longer a problem, he said.

    Weak demand is likely to persist throughout this year. The International Monetary Fund last month forecast that global trade growth will drop from 5.4% last year to 2.4% this year.

    American spending on goods has dropped 5.4% from the peak in March 2021.

    Logistics giant Maersk anticipates that container shipping demand will drop by 2.5% this year.

    The supply of container ships, however, is expected to rise in this and next year and many ships are set to be completed.

    Container ship capacity is set to increase by 7.8% this year while demand is expected to rise 3.5%. In 2024 the two figures are expected to be 8.3% and 3.5% respectively.

    This shows that there will be an oversupply of container ships in 2023 and 2024, and competition in the logistics sector is set to be intense, Chung said.

    SSI Securities Corp. analysts said in a report that demand for goods from Vietnam will likely resume in the second half of the year when the shopping season arrives and after unsold inventory has been liquidated in Europe and the United States.

    Anh, however, has a more pessimistic forecast.

    “There is no sign that the financial market will recover this year,” said Anh. “Deposit interest is still rising and a recovery in the logistics industry is not expected until the very end of 2023.”

    Phaata CEO Chung said that container shipping prices to North America and Europe will continue to stay low until recovering in the fourth quarter as Christmas shopping rises.

    Next year, prices will continue to fall as container supply outweighs demand.

    “The logistics sector will see brighter signs in 2025 and prices will resume to pre-pandemic levels,” said Chung, “with a more balanced supply and demand relationship.”

    Chung advises logistics firms to expand their markets to other Asian destinations such as China, Japan, South Korea and Southeast Asian countries.

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  • FedEx to cut global management jobs by over 10% as e-commerce demand wanes

    FedEx to cut global management jobs by over 10% as e-commerce demand wanes

    FedEx is cutting global officer and director jobs by more than 10 per cent, the courier’s latest cost-saving step as economic concerns and waning e-commerce weigh on demand for package delivery.

    The company plans to consolidate some teams and functions in addition to the headcount reduction, part of an effort to become a “more efficient, agile organisation”, chief executive Raj Subramaniam said on Wednesday in a memo to employees. The changes will align the size of the network with customer demand, he said.

    “This process is critical to ensure we remain competitive in a rapidly changing environment, and it requires some difficult decisions,” Mr Subramaniam said in the memo.

    The slump in parcels is industrywide, with rival United Parcel Service reporting on Jan 31 lower volumes in the United States and a forecast for declining sales in 2023.

    Couriers are facing a market in which consumers have returned to shopping in stores, inflation is eating away at purchasing power and companies are sending fewer goods by airfreight now that maritime shipping rates have plummeted and supply chain delays have been corrected.

    The latest cuts bring FedEx’s total employee reductions to 12,000 since June, a spokesman said. As at May, the company had 345,000 full-time workers, according to a regulatory filing.

    FedEx said the job losses include “executive management”, but did not give additional details on which units would be most affected. During an analyst call in December, the company said the Express unit requires more work to improve margins.

    “At Express, the team is transforming the network to be more agile, efficient and digitally led,” Mr Subramaniam said on the call. FedEx is also making changes at its Ground unit to weed out underperforming delivery contractors.

    FedEex shares rose 4.3 per cent on Wednesday in New York, bringing the gain in 2023 to 17 per cent.

    Since taking over as CEO from founder Fred Smith in June, Mr Subramamian has unveiled US$3.7 billion (S$4.8 billion) in cost cuts for this fiscal year in response to a rapid decline in parcel demand. The steps include worker furloughs, cutting cargo flights and parking some planes.

  • Ninja Van Unveils White Paper on Live Selling in Southeast Asia

    Ninja Van Unveils White Paper on Live Selling in Southeast Asia

    Ninja Van Malaysia, a tech-enabled logistics company, has released its first-ever white paper on Live Selling in Southeast Asia. The white paper introduces Live Selling as one of the up-and-coming Southeast Asia’s e-commerce trends and shares Live Selling insights collected from over 1,000 Ninja Van’s e-commerce sellers across Malaysia, Singapore, Indonesia, The Philippines, Thailand, and Vietnam.

    While Live Selling is still a nascent industry in most Southeast Asian countries, the increase in the number of Live Selling solutions shows that the new retail trend shaping the future of e-commerce is here to stay – and sellers are taking note.

    In Malaysia alone, 40% of live sellers conduct their sessions daily, ranking higher than its regional neighbours Singapore (17%), Indonesia (23%), and Vietnam (27%). Additionally, 47% of live sellers in Malaysia conduct each session for up to 2 hours.

    “Live Selling is an interesting marketing tactic for e-commerce sellers,” says Winston Seow, chief marketing and enablement officer, Ninja Van Group. “It’s the only tactic that can fast-track shoppers’ purchase journeys from awareness straight to conversion. Live Selling also gives e-commerce sellers the ability to build relationships at scale with their shoppers, both new and existing.”

    One in three of the surveyed Southeast Asian e-commerce sellers is now doing Live Selling, spending up to six hours weekly conducting Live Selling sessions. Most of the early adopters of Live Selling are from low-involvement product categories such as fashion, beauty & personal care, food and beverages, as well as home & living.

    While Shopee (27.0%), Facebook (25.5%), and TikTok (22.5%) are ranked as the top three Live Selling channels, the close margins signal that the champion has yet to emerge in Southeast Asia. This could be explained by the fact that on average, the surveyed e-commerce sellers use two channels for Live Selling, presumably to maximise their outreach to shoppers.

    Live Selling also offers e-commerce sellers a new way to better connect with customers. “Since we started Live Selling, we’ve seen an increase in our sales and have built a stronger relationship with our customers.

    “We sell over 1,600 household products made from different materials and through our live sessions, we’re able to engage directly with our customers and answer any questions they may have about our products. I believe this makes for a more positive shopping experience for our customers, allowing them to make informed decisions about their purchases,” says Tan Jie Xian, Digital E-commerce marketing executive at Elianware.

    The white paper also explores the challenges of Live Selling, such as keeping Live Shoppers engaged, preparing on-set logistical requirements, as well as sales and post-sales arrangements. Recommended solutions are included too.

  • Vietnam posts trade surplus of $3.6B in January

    Vietnam posts trade surplus of $3.6B in January

    Despite decreases in both imports and exports, the country still enjoyed a trade surplus of $3.6 billion in the first month of 2023, according to the General Statistics Office (GSO).

    The office reported that in the month, total import-export turnover reached $46.56 billion, with exports dropping 21.3% to $25.08 billion, and imports falling 28.9% to $21.48 billion.

    While the domestic sector saw a trade deficit of $1.04 billion, the foreign-invested sector (including crude oil) posted a surplus of $4.64 billion.

    Experts attributed the result to the long New Year and Lunar New Year (Tet) holidays, which were all in January, reducing the number of working days. Last year, the Tet holiday fell in February.

    The GSO reported that the manufacturing-processing sector earned the highest export revenue with 22.32 billion USD, accounting for 89% of the country’s total.

    Meanwhile, there were three goods groups with imports of over $1 billion.

    In January, the U.S. remained the biggest importer of Vietnamese goods with a revenue of about $7.6 billion, while China was the biggest exporter to Vietnam with $8.1 billion.

    The GSO held that many countries are facing the threat of inflation and economic recession, leading to reduction in global consumption, thus affecting Vietnam’s import-export activities.

    Export activities showed signs of slowing down from the fourth quarter of 2022 with fewer orders, it said, adding that 2023 is likely to be a tough year for Vietnam’s import-export.

    In 2023, the MoIT sets a target of a 6% rise in goods export revenue, with trade surplus maintained.

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  • Bamboo Airways establishes cargo carrier

    Bamboo Airways establishes cargo carrier

    Bamboo Airways has announced the founding of Bamboo Airways Cargo in an effort to develop a larger network of affiliates in Vietnam’s sparse aviation ecosystem.

    Hanoi-based Bamboo Airways Joint Stock Company (BAC) is launching with a charter capital of VND20 billion ($833,000), 75% of which has been contributed by Bamboo Airways, the carrier said Wednesday.

    The remainder belongs to three other individual shareholders.

    Bamboo Airways named its vice chairman Doan Huu Doan as chairman of the new BAC, while Bamboo Airways deputy general director Nguyen Khac Hai will be BAC’s new CEO.

    Bamboo Airways is present at 21 out of 22 airports in Vietnam, and at other major airports in the Asia-Pacific region and Europe.

    In September 2022, Vietravel Airlines said it would cooperate with HCMC-based Asean Cargo Gateway Joint Stock Company to launch an air cargo service, contributing 51% and 49% of the capital, respectively.

    Vietravel Airlines CEO Vu Duc Bien has noted that the region’s air cargo market lacks carriers and therefore carries immense untapped potential.

  • Thien Long Group further invests in production and distribution

    Thien Long Group further invests in production and distribution

    Thien Long Group has inaugurated its Clever Box store chain, put into operation a new plant and distribution center in the final quarter of 2022.

    According to a representative of Thien Long, the group had set a plan years ago to upgrade shopping experiences by building a store chain that brings customers many personal experiences like in well-known stationary store chains in Asia as well as the world.

    The target was partly reached as Thien Long Group opened Clever Box stores in October and November this year. The store chain offers stationeries and creates a world of creative toys, and souvenirs through DIY and STEAM items.

    Aside from a wide range of products and creative toys with high educational values, Clever Box provides unique experiences to customers.

    The stores have cozy spaces featuring eye-catching designs and arrangements that inspire customers of all ages to discover “a creative world.”

    Clever Box also has a high-tech platform offering a quick transaction experience to customers. In the coming time, the group will expand the store chain’s online channel cleverbox.vn, e-commerce platforms, and offline channels.

    The Clever Box store chain has further improved the distribution system of Thien Long. The group currently manages 55,000 selling points and channels from GT to MT and B2B and e-commerce channels.

    In the final quarter of 2022, Thien Long Group also put into operation Thien Long Long Thanh Factory in the southern Dong Nai Province and a distribution center in Le Minh Xuan Industrial Zone in HCMC’s Binh Chanh District.

    The new factory covering nearly 10,000 square meters has a capacity of 739 million products per year. The project required a total investment of VND230 billion. The Thien Long Long Thanh Factory plays a role of helping the group diversify products and increase sales.

    Once the new factory is completed, the Thien Long Long Thanh factory complex will have a total area of 28,450 square meters. The new plant and the current Nam Thien Long factory covering 15,750 square meters in Tan Tao Industrial Park in HCMC will help raise the group’s production capacity to meet the market demand and contribute to the growth of Thien Long.

    In mid-October, Thien Long Group opened the distribution center in Le Minh Xuan 3 Industrial Zone in HCMC’s Binh Chanh District. Work began on the project in December 2021. The five-story facility covering 14,000 square meters can handle 14,000 tons of goods and 1,000 orders from e-commerce channels each shift.

    Recently, Thien Long Group was also named one of the Top 100 Sustainable Businesses by Vietnam Chamber of Commerce and Industry (VCCI) and Vietnam’s 50 Best-Performing Companies by Nhip Cau Dau Tu Magazine.

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  • Trade to surpass $730B for first time

    Trade to surpass $730B for first time

    Vietnam’s trade is expected to reach US$732 billion this year, the highest ever, increasing 10% against last year, the Ministry of Industry and Trade said.

    Exports are estimated at $371.5 billion, up 10.5% against 2021, and imports at $360.5 billion, up 8.5%, resulting in a trade surplus of $11 billion, the ministry announced at a foreign trade review meeting Monday.

    The country has gained a trade surplus for seven straight years.

    Among exports, there 39 items accounted for a turnover of over $1 billion, compared to 35 items against last year. Nine items recorded a turnover of over $10 billion.

    Processed and industrial products accounted for more than 86% of total export turnovers.

    Vietnam exported less raw products, while shipping more processed and industrial goods, creating favorable conditions for local products to penetrate more deeply into global production and supply chains, said Deputy Minister of Industry and Trade Tran Quoc Khanh.

    Some 74% of the total export turnovers in Vietnam came from foreign-invested enterprises. Exports from domestic enterprises, especially small- and medium-sized ones, remained modest.

    Vietnam has targeted a rise of some 6% in foreign trade as well as a trade surplus in 2023, he said.

    Deputy Minister of Foreign Affairs Nguyen Minh Vu said that in 2023 many economies around the world experience high inflation, and the world economy would likel have a technical recession, leading to a decrease in global purchasing power. Meanwhile, trading partners will be more demanding, and may adjust regulations related to carbon emissions reductions, and tighten import requirements.

    In 2021, the World Trade Organization had ranked Vietnam 23rd in terms of exports and 20th in imports. In the 10-member ASEAN, Vietnam ranked second behind only Singapore.

  • Vietnam poised for record trade

    Vietnam poised for record trade

    Vietnam’s foreign trade is set to exceed US$700 billion this year, the highest ever, the customs department said.

    It has risen steadily from $500 billion in 2020 and $600 billion last year.

    In the first 11 months exports rose bviy 13.4% from a year earlier to $342.2 billion, and imports were up 10% to $331.6 billion, resulting in a surplus of $10.6 billion.

    Exports to the U.S. alone, the largest export market, were worth $101.5 billion. Imports from China, the
    country’s biggest source, topped $109.9 billion.

    According to the General Department of Vietnam Customs, the country’s global import-export ranking
    will go up this year.

    In 2021 the World Trade Organization had ranked Vietnam 23rd in terms of exports and 20th in imports.

    In the 10-member ASEAN, Vietnam ranked second behind only Singapore.

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  • Vietnam firm reluctant to launch cargo flights, foreign carrier eager

    Vietnam firm reluctant to launch cargo flights, foreign carrier eager

    Local IPP Air Cargo has axed plans to become Vietnam’s first cargo airline, but Germany’s Lufthansa Cargo has expanded operations.

    In late October, IPP Air Cargo canceled its application to launch what would have been the nation’s first cargo airline. However, the company had already completed the procedures to lease four Boeing Converted Freighters 737 800BCF.

    Jonathan Hanh Nguyen, chairman of the airline’s parent company Imex Pan Pacific Group (IPPG), said that global air cargo demand was declining due to current turmoil.

    “We have decided to end our plan to avoid causing more damage to carriers that are already incurring losses,” he said, adding that the company aimed to reinstate the plan when the market stabilizes.

    Last month, Lufthansa launched its first direct flight from Frankfurt to Hanoi.

    The carrier had previously run two weekly flights from Germany to HCMC before diverting operations to Thailand.

    CCO Ashwin Bhat said his airline could not ignore the Vietnamese market, where 30% of exported items are electronics and high-tech goods.

    Vietnam’s plentiful bilateral trade agreements with major markets, especially Europe, were attractive to Luftnasa, said Bhat.

    He added that the country’s rapid economic recovery from the Covid-19 pandemic had also interested the dominant European airline.

    According to government statistics, the total volume of goods transported by air in Vietnam has increased 2.5 times over the last ten years. The number is forecasted to surge to 4.1 million tons by 2030.

    According to the Vietnam Logistics Business Association (VLA), Vietnamese airlines hold an international freight forwarding market share of only 12%, while nearly 30 foreign carriers hold the rest.

    VLA president Le Duy Hiep said the withdrawal of IPP Air Cargo from the market was a pity because domestic logistics enterprises are in dire need of Vietnamese cargo airlines.

    According to Hiep, Vietnam’s massive amount of total imports and exports were worth over $700 billion in 2022, with over half being exports. Over two million tons of goods are exported by air from Vietnam each year.

    Analysts have said that these factors have made the potential of the Vietnamese cargo market plain to see for Lufthansa Cargo.

    Hiep said Vietnam should be home to cargo airlines with larger market shares, but noted that this would require much more investment and a wider network of agents and customers.

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  • Malaysia to test air cargo community system at KUL

    Malaysia to test air cargo community system at KUL

    Efforts are coming in all forms to support Malaysia’s competitiveness in its transport and logistics sectors as plans to introduce a platform that will connect stakeholders of Kuala Lumpur International Airport are underway.

    Air cargo software provider Kale Logistics Solutions and tech company Dagang NeXchange (DNeX), through its subsidiary Dagang Net, have signed a partnership agreement to introduce the Airport Cargo Community System (ACS) platform in Malaysia.

    The ACS is a neutral and open platform, enabling intelligent and secure information exchange between public and private stakeholders and is planned to be integrated with other community systems such as the National Single Window (NSW) and Port Community Systems (PCS) for trade facilitation.

    Vineet Malhotra, co-founder and director at Kale Logistics Solutions, said the latest development presents a powerful case that cargo community platforms need to integrate to bring greater value. And the plan is to create a global network of smart logistics hubs, starting in Malaysia.

    “Our role is to support businesses, especially SMEs, by providing an efficient and comprehensive global logistics network that can serve a larger international customer base and reduce trade barriers.”

    DNeX says the partnership with Kale complements Dagang Net’s capability to grow trade facilitation e-services for air mode through the ACS platform.

    “The ACS enables seamless electronic transactions, equipped with intelligent and secure information exchange among stakeholders to enhance the airport community competitiveness,” commented Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director.

    “This, in turn, can contribute to efforts in improving Malaysia’s competitiveness in its transport and logistics sectors as well as overall operational efficiency, connectivity, and productivity across the country’s supply chain,” he noted.

    Dagang Net has been using electronic Customs-related services to ease trade facilitation and streamline international trading processes for imports and exports, trade and logistics industries, and this initiative is aligned with the company’s direction, he added.

    Both Kale and Dagang Net are part of the Pan Asia e-Commerce Alliance (PAA), a 16-member regional e-commerce alliance in Asia that aims to promote and provide secure, trusted, reliable and value-adding IT infrastructure and facilities for efficient global trade and logistics.

  • CargoAi offers Neste jet fuel to drive SAF takeup

    CargoAi offers Neste jet fuel to drive SAF takeup

    Freight forwarders of all sizes can now play a more significant role in reducing cargo-related carbon emissions with a new tie-up between CargoAi and Neste.

    The cargo booking platform and the leading producer of sustainable aviation fuel (SAF) have announced a partnership that will allow the voluntary purchase of SAF.

    Starting November, CargoAi offers the option to purchase Neste MY Sustainable Aviation Fuel when booking a cargo transport. This can be done during the booking process, that is, either after a booking is confirmed or when the cargo is being tracked.

    During the booking or tracking phase, freight forwarders on cargoAi will be prompted with the CO2 emissions data that their shipment will emit, calculated based on IATA standards. They now have an option to purchase to reduce emissions with the access to buy in smaller quantities.

    “Building on the CO2 Efficiency Score already available in our Cargo2ZERO solution, will further encourage forwarders to enter into discussions with their own clients about what is needed for the industry to move forward towards reaching the industry’s Net Zero targets together,” says Matthieu Petot, CEO of CargoAi.

    “We are also enabling access for smaller freight forwarding companies in 110 countries to purchase SAF in smaller quantities.”

    CargoAi said Neste will ensure specific SAF volumes purchased are delivered and used by partner aircraft operators. The company considers SAF as a ‘key element’ to reach aviation’s ambitious goal of net-zero carbon emissions by 2050.

    “Purchasing SAF remained until now a hard-to-navigate, resource-intensive process and often required purchases of large volumes, which made reducing emissions at the transactional level very difficult,” said Magali Beauregard, Chief Commercial Officer of CargoAi.

    “With the direct purchase of SAF now embedded in the booking execution and tracking flows, we’re taking the next steps to empower climate action by offering our clients straightforward, user-friendly and verifiable means to ensure reduced emissions. We are extremely delighted about this landmark partnership with Neste and confident that this will enable clients of any size to take effective climate action without further delay.”

  • DB Schenker to deploy robots for Prague facility

    DB Schenker to deploy robots for Prague facility

    DB Schenker is set to open a new automated fulfillment warehouse in the Prague region next year.

    Along with retail operations, the new 55,000-sqm distribution center will manage B2C e-commerce activities, including an extensive value-added services area addressing the demand for personalized products requested by consumers.

    The fulfilment center, which will be located near Prague Airport and a major highway that runs to Germany, is schedule to begin operating in the summer of 2023 to serve Central and Eastern Europe.

    DB Schenker said the current distribution center, also located in the Prague region, cannot accommodate the future demands of the customer. The current site will not be closed but used for reverse logistics services.

    The new distribution center will feature a highly scalable, modular G-T-P (goods-to-person) system combined with an extensive conveyor system and a high-performance cross-belt sorter provided by partner Körber.

    The facility will also feature one of the largest deployments of autonomous mobile robots in Eastern Europe. Körber’s software solution will control more than 100 AMRs that will be part of the highly automated logistics ecosystem.

    Despite the high automation level, the distribution center will require more than 1,000 operators at peak times, DB Schenker noted.

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