Schenker signs pact with CMA CGM for emission-free ocean freight

Hyderabad DB Schenker, the first logistics company to switch its entire LCL volumes to regular carbon-free production, has signed a purchase contract for over 2,500 tonne of biofuel with CMA CGM, a global leader in shipping and logistics. 2,500 tons is more than required to transport all LCL (Less-than Container Load).

DB Schenker will be able to reach net carbon zero-emission on a well-to-wake basis on the LCL segment, thanks to this overallocation. By joining forces to offer green container transport, which immediately reduces the environmental footprint of maritime transport, both companies make a significant step towards decarbonising ocean freight.

Their customers can book the carbon-zero LCL option with immediate effect and receive a certificate of the emission reduction for their climate balance sheet.

The cooperation has the potential to reduce greenhouse gas emissions by more than 7,000 tons CO2e well-to-wake, which corresponds with at least 100 percent of the WTW emissions of the LCL containers handled with CMA CGM, making it one of the most significant deals in ocean freight logistics.

Thorsten Meincke, Global Board Member for Air and Ocean Freight at DB Schenker, said: "We are excited to make a significant investment in reducing the CO2 footprint in container sea freight. Running on biofuel marks another important step towards greener supply chains and pays into our overall sustainability agenda in ocean freight. Our goal is to become a sustainability leader of the logistics industry and net carbon-zero by 2040, and we are ambitiously taking the lead here with CMA CGM."

"As a pioneer and a leader in sustainable shipping and logistics, the CMA CGM group has pledged that alternative fuels will cover at least 10 per cent of its consumption by 2023. We already offer our customers a range of turnkey solutions to tackle their carbon footprint. Biofuel is one of the solutions to decarbonise shipping, and we are delighted about the bold partnership we are launching today with DB Schenker. CMA CGM continues to invest heavily in research and development alongside its industrial partners to identify the energy sources of the future," Olivier Nivoix, Executive Vice President, Lines, CMA CGM Group said.

Biofuel can integrate into regular operations without infrastructure or supply chain adjustments; it is practical and suitable for everyday use. Biofuel is produced from waste materials, such as used cooking oils.