Panalpina, the world’s fourth biggest ocean freight forwarder by transport volumes, and CMA CGM, one of the world’s leading shipping groups, have signed a sustainability agreement aimed at reducing their respective carbon emissions by 2025. As of 2020, newbuild LNG-powered mega-vessels with a capacity of 22,000 twenty-foot containers (TEUs) will help achieve the environmental goals.

Aiming at responsible development in ocean freight, Panalpina and CMA CGM have signed a sustainability agreement for maritime transport.

“Partnering with strategic partners such as CMA CGM that are technology driven and share a similar vision of sustainability, and using them to transport our customers’ cargo will help us achieve our ambitious sustainability goals,” says Lindsay Zingg, Panalpina’s global head of quality, health, safety and environment (QHSE). Panalpina is one of only 140 companies globally with approved Science Based Targets where the company – amongst other targets – commits to reduce CO2 emissions from subcontracted transportation by 22 percent by 2025 (baseline 2013).

CMA CGM, one of the world’s largest box ship carriers, aims to reduce carbon emissions per standard container (TEU) transported by 30 percent by 2025 (baseline 2015). “We are determined to reach that goal by investing in highly fuel-efficient vessels, making constant technical improvements, and retrofitting our fleet,” says Julien Topenot, head of environment and sustainability at CMA CGM.


LNG-powered mega-vessels to reduce carbon emissions

Marseilles-based CMA CGM, which recently celebrated its 40th anniversary, was the first shipping company to order container ships propelled by liquefied natural gas (LNG). Nine LNG-powered mega-vessels or ULCVs (Ultra Large Container Vessels) with a capacity of 22,000 TEUs are scheduled for delivery in 2020. “Compared to current fuel-powered vessels, our new LNG vessels will enable a reduction of up to 25 percent in CO2. They will also generate 99% less sulphur emissions, 99% less fine particles and 85% less nitrogen oxides emissions,” explains Topenot.

“We are already using CMA CGM’s most efficient and environmentally-friendly services. With this new agreement, both Panalpina and CMA CGM reinforce their commitment to sustainability,” adds Zingg.

In 2017, Panalpina transported 1.5 million TEUs, making it the fourth biggest ocean freight forwarder in the world.

In the same year, with a fleet of approximately 500 vessels including energy-efficient ships such as the Antoine de Saint-Exupéry and more than 200 services that cover all of the world’s seas, CMA CGM transported 19 million TEUs.

For the environment and more

The scope of the sustainability agreement between CMA CGM and Panalpina goes beyond the reduction of the environmental impact via eco-friendly transport solutions. The companies have committed to collaborate, innovate and improve in four key areas: the environment, ethics and compliance, social responsibility, and community. Initiatives where CMA GGM and Panalpina intend to work more closely together include occupational health and safety programs, local sourcing as well as emergency relief and support.

Notes to the editor:

Since January 2015, Panalpina automatically calculates all customers’ emissions based on the reporting standard EN 16258. In December 2015, Panalpina committed to the Science Based Target Initiative, setting approved science-based targets and thus agreeing to actively manage emissions through reduced energy use and stakeholder engagement. Panalpina was one of the first companies globally to have such targets approved. They are in line with the views of the Intergovernmental Panel on Climate Change (IPCC) to keep global warming below a dangerous threshold. According to this panel of scientists, global greenhouse gas emissions must be cut by up to 70% by 2050 to limit global warming to 2 °C and avert irreversible climate change. In a new report published on October 8, 2018, the IPCC highlighted a number of climate change impacts that could be avoided by further limiting global warming to 1.5 °C instead of only 2 °C.

Following the International Maritime Organization’s historic decision in April of 2018, aimed at reducing the total annual greenhouse gas emissions by at least 50% by 2050 compared to 2008, CMA CGM reaffirmed its commitment towards the protection of the environment with the new 30-percent reduction goal by 2025. Prior to this, the CMA CGM Group had already developed several innovations (fleet and engine optimization, creation of Fleet Centers, etc.), which led to a reduction of its carbon emissions by 50% between 2005 and 2015 and by 10% in 2017 compared to the previous year.

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About CMA CGM

CMA CGM is a leading worldwide shipping group with a young and diversified fleet of approximately 500 vessels. Its ships call 420 of the world’s 521 commercial ports. In 2017, they carried 18.95 million TEUs (twenty-foot equivalent units). Headed by Rodolphe Saadé, the CMA CGM Group is present in more than 160 countries with 755 agencies and more than 30,000 employees worldwide. 4,500 employees work in France, of which 2,400 at the Group’s head office, the CMA CGM Tower in Marseilles, the city where the company was founded in 1978 and today is the largest private employer.

The Board of Directors of CEVA Logistics AG, a global asset-light third-party logistics company, announces that it has received an unsolicited non-binding proposal to acquire the company at the price of CHF 27.75 per share in cash. The Board of Directors of CEVA Logistics carefully reviewed the proposal with the support of its legal and financial advisors and unanimously concluded that the proposal is not in the best interest of the company and its shareholders. Specifically, the Board of Directors concluded that the proposal significantly undervalues CEVA's prospects as a standalone company particularly as CEVA Logistics together with CMA CGM S.A. ("CMA CGM") as a strategic partner has been exploring measures to enhance performance in order to unlock CEVA Logistics' full potential. The unsolicited proposal is therefore inadequate. Accordingly, the Board of Directors has decided to not engage on the basis of this unsolicited proposal.

Modification of stand-still agreement with CMA CGM

In light of the current circumstances, the Board of Directors on request of its major shareholder CMA CGM has agreed to modify the current stand-still agreement between CEVA Logistics and CMA CGM. CMA CGM's duty to not increase its holding above the current 24.99% of the share capital until 5 November, 2018 has been amended to the effect that CMA-CGM is allowed to increase its holding up to one third of the voting rights of CEVA Logistics with immediate effect. All other obligations of CMA CGM (as made public in the IPO prospectus) remain in place, in particular the obligation of CMA CGM to tender its shares into a public tender offer by a third party if recommended by the Board of Directors unless CMA CGM launches a superior offer. In addition, CMA CGM has agreed, under certain conditions, to not launch or trigger an offer without the recommendation of the Board of Directors in the next 6 months (other than an offer which is superior to another offer).

Earlier this year Panalpina officially opened its new, purpose-built logistics center in Singapore. One of the first and largest customers to use the new facility is Royal Dutch Shell.

Panalpina has already been handling international transport for Shell for over three years and will now handle local deliveries in addition to warehousing for Shell’s integrated lubricants and grease production facility in Tuas, which is located 12 kilometers away from Panalpina’s new logistics center on Pioneer View.

Enjoy this amazing drone footage of our new logistics center by the Ayer Rajah Expressway in Singapore.

The Shell Tuas plant has a size equivalent to almost 25 football fields. It is Shell’s third largest lubricants plant in the world and the second largest in Asia-Pacific. The plant is capable of producing up to 430 million liters of lubricants and greases every year – enough to change the engine oil of over 12,000 cars, every hour, every day.

Plant logistics and regional distribution for Shell Lubricants

Panalpina operates inplant warehousing for Shell Lubricants in Tuas, managing the internal movement of finished goods from the production line for dispatch to the new logistics center that acts as a regional distribution center. Panalpina also manages transport between the plant and the center and delivery to the end customer.

The plant is adjacent to the Singapore Lube Park (SLP) and uses the latest, highly-automated lubricant blending, filling and packaging technology. SLP contains an import-export jetty, pipelines and a tank farm.

“This state-of-the-art, highly automated facility in Singapore was built to support our business ambitions here in the APAC region. It serves as a strategic production hub, and will be the centerpiece of our lubricants supply chain network to reliably supply our world-class lubricants to millions of customers in the region,” said Huibert Vigeveno, Shell Global Commercial, Executive Vice President, speaking at the inauguration of the plant in November last year.

Asia represents over 40% of the world’s lubricants demand, and is home to half of the world’s largest lubricants markets. Three out of Shell’s five base oil plants are in Asia.

“This facility will also further strengthen our marine lubricant business presence here in Singapore, the world’s second busiest port,” added Vigeveno.

Panalpina’s warehouse management and some of the freight contracts span over several years, an exception from the 12-month period customary for freight handling.

The new agreement with Shell goes in hand with Panalpina’s push for the further development of operations in and out of Singapore and Asia-Pacific.

Streamlined execution of end-to-end solutions with strong safety controls

“We have already been working successfully with Shell in other facilities in the USA. Now we will also add value to Shell Lubricants with the streamlined execution of end-to-end solutions and robust HSSE. “We are helping Shell one region at a time to better integrate, streamline and get the most out of their supply chain,” said Saida Sawyer, global key account manager at Panalpina.

Panalpina’s new warehouse center offers 25,800 m2 of usable space over six floors, each floor with 10-meter clear height. The building also features a unique yard and container storage on the rooftop, which can accommodate 44 fully loaded 40-foot trailers.

Shell currently occupies two floors. The majority of these goods end up shipping to four major destinations in Australia.

Panalpina brings to the market another industry first with the Less than Container Load (LCL) Ocean Freight hub in Cartagena, Colombia, which connects services in Europe, Asia and Latin America with Central America and the Caribbean. Operated entirely by Panalpina, this new development offers customers more than 30 new LCL services, reduced transit times and greater coverage.

Adding the Colombia hub to its global LCL network infrastructure creates a unique offering in the market and further strengthens Panalpina’s position as one of the leading LCL service providers in Latin America, which has long been a focus area for the global freight forwarder.

“According to global economic projections, growth is expected to reach 1.7 percent in 2018 and 2.3 percent in 2019 in Latin America and the Caribbean,” says Clas Thorell, Panalpina’s global head of Ocean Freight LCL. “We want to be part of the future of this emerging market by offering financially viable solutions to customers who source or distribute in these markets.” The Colombia hub offers 20 inbound connections and 18 outbound connections through Pantainer Express Line, allowing smaller shipments to move by ocean with consistent and regular departures.

Stefan Karlen, Panalpina CEO adds: “This is a long-term investment in the global supply chain that we believe will be beneficial for our customers and Panalpina, today and well into the future. Now, our Colombia hub reduces transhipment time and allows faster access to markets. The future opportunities it opens up are real possibilities for our customers to pursue investments in the region and that is what we are looking to achieve – solutions that foster growth for Panalpina, our customers and the communities where we operate.”

Colombia hub services

Panalpina’s inbound services operate weekly into the Port of Cartagena from Belgium, France, Germany, Italy, and Spain in Europe; Miami and New York in the United States; Altamira and Veracruz in Mexico; Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua in Central America; the Dominican Republic in the Caribbean; Argentina, Brazil, Chile and Peruin South America; and South Korea in Asia.

Outbound services operate weekly from the Port of Cartagena to the Netherlands in Europe; New York in the United States; Veracruz in Mexico; Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama in Central America; Curacao, the Dominican Republic, Jamaica, as well as Trinidad and Tobago in the Caribbean; Argentina, Brazil, Chile, and Peru in South America; and South Korea in Asia.

All services are easily viewed in Panalpina’s online LCL sailings schedule.

Notes to the editor:

Optimized logistics spend, more flexibility, reliability and improved supply chain

Panalpina is one of the world’s leading LCL service providers. LCL offers the possibility of consolidating multiple consignments from multiple customers in one Full Container Load (FCL). Customers can ship low volumes without having the cost commitments of a full container. Hence, LCL gives customers with lower volume shipments access to the economies of scale in ocean freight that are normally restricted to full container movements. Panalpina’s global LCL network consists of numerous direct LCL services and strategically located hubs. Customers benefit from an optimized logistics spend, more flexibility and seamless door-to-door services with the highest level of schedule integrity and reliability in transit times.