2021 was a year of diverse challenges that DACHSER was able to master with great stability and resilience. At the same time, the company set an important strategic course, particularly with regard to its climate protection activities. Here is a text from CEO Burkhard Eling.
Burkhard Eling, CEO DACHSER
The year 2021 was the year of supply chain bottlenecks. The upheaval resulting from the coronavirus pandemic, as well as extreme weather and the blocking of the Suez Canal, have shone such a bright light on existing weaknesses in global logistics infrastructure that some people are now talking of a “new shortage economy”—and it is putting economic growth at risk.
Nevertheless, we are a strong team, so together with our customers and partners we have successfully managed to keep global supply chains running and to deliver high quality. This is what our resilient network is designed for. At the same time, we have set a strategic course this year that equips us to tackle the issues of the future.
COP26, the UN Climate Change Conference held this year in Glasgow, brought one of these issues into focus. Over the coming years, the pursuit of greater sustainability will be the main force determining the global agenda. Our industry is no exception; the political course for more sustainable logistics has long been set. The road ahead will be challenging, partly because key technologies are still more or less at the early trial stage.
Ongoing and lasting commitment to sustainability
At DACHSER, we are engaging fully with the issue of climate protection and addressing it proactively: we are currently expanding our emission-free city-center concept to eleven European cities, switching to mega trailers across Europe, and investing in photovoltaics. As of 2022, all our electricity purchases worldwide will be green. Moreover, we will acquire more battery-electric trucks and recharging stations, participate in the testing of hydrogen trucks, and also gradually convert our fleet of company cars.
All these measures are individual steps—but together, they represent our ongoing and lasting commitment to sustainability. We will pursue this path together with customers, employees, vehicle manufacturers, and partners, because the only way to achieve the goals the global community has set itself is by combining our efforts.
To mark the occasion: update of our Brexit checklist
The EU withdrawal of the United Kingdom was completed on 31.01.2020. Currently we are in a transition phase which ends on 31.12.2020. A further extension of this transitional phase should have been agreed until 01.07.2020 and is therefore no longer possible. Thus, the United Kingdom will no longer be part of the internal market and the customs union as of 01.01.2021. If no agreement is reached between the UK and the EU in the remaining time of the transition phase, trade would in future fall under the rules of the World Trade Organization.
We at DACHSER cannot influence the political situation in the UK, but we can prepare you in the best possible way for regulated customs procedures. We have therefore adapted and updated our Brexit checklist to the current circumstances. You can download it here free of charge.
If you have any questions, please get in touch with your responsible contact person at the respective DACHSER branch
Latest update on DACHSER Air & Sea Logistics operations
With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.
Latest update on DACHSER Air & Sea Logistics operations
With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.
Step by step toward the goal — Sea freight groupage containers facilitate the continuous flow of goods
In turbulent economic times, sea freight groupage containers are becoming increasingly popular. Production bottlenecks, fragile global supply chains, and a container shortage have further increased the demand for small and predictable shipment sizes in sea freight. Michael Kriegel, Department Head DACHSER Chem Logistics, explains the service that enables a reliable flow of goods in sea freight. He also talks about why a good network connection is crucial, especially for goods with high security requirements.
Sea freight groupage containers facilitate the continuous flow of goods
Companies are already analyzing their global supply chains and increasingly shifting their shipments to sea freight groupage (called “less than container load,” or LCL for short). The big advantage of groupage for customers is that they can ship smaller loads without having to pay for a full container. As a result, they can maintain a continuous flow of goods, even in the event of production bottlenecks, and also respond more flexibly to seasonal fluctuations. LCL containers are often prioritized over full containers in the loading process, which provides an additional time advantage and allows for better planning of transportation times. DACHSER markets what it calls “consolidation boxes” - customers pay only for the space they actually occupy in the containers. In addition, the company plans departures weeks in advance rather than only once production volumes are known. This means that containers, which are still in short supply, can be pre-booked in good time and customers retain flexibility when booking.
Many companies, especially in the automotive, life science, and healthcare industries, have been using groupage shipments by sea for years. But this service is also suitable for the chemical industry, which places particularly high demands on safety and transparency during transport - and thus needs a logistics provider with the appropriate experience. DACHSER is one such provider. It set up a purchasing partnership with the German Chemical Industry Association (Verband der Chemischen Industrie e.V., or VCI) in 2009. This successful alliance for European groupage shipments from Germany was then expanded in 2015 to include air and sea freight. Member companies of the association now benefit from globally standardized core services in the groupage network - transport, warehousing, and IT solutions. All this specialist industry experience has been pooled in the DACHSER Chem Logistics team.
“In shipments from customers in the chemical industry, which sometimes contain dangerous goods, the decisive factor is always safety. We have to protect life, limb, and the environment,” says Claus Freydag, Managing Director DACHSER Air & Sea Logistics Germany. “DACHSER also boasts global dangerous goods expertise in the groupage container segment and covers all LCL-compatible IMO classes in its own network and in its partner network,” he adds. The company’s central dangerous goods management system and its more than 250 regional safety advisors monitor compliance with special regulations governing the transport of dangerous goods. In addition, many DACHSER employees are trained annually in the particular requirements of chemical logistics.
For sea freight groupage, the sea freight team consolidates various LCLs and loads them into a full container. This optimizes utilization of container capacity, which in turn provides the basis for economical transport costs. Maximum utilization also improves transport sustainability while reducing the risk for individual companies at a time when supply chains are fragile. “Ports around the world have been clogged for months, causing significant delays - and making it rare, if not impossible, for shipping companies to stay on schedule. Instead of sending a full container on its way, which can get held up if loading windows are missed, more and more customers are opting for sea freight groupage containers. This reduces their risk by spreading it over several departures and ships and ensures a more timely transport,” Freydag explains.
Intelligent logistics solutions and a strong network are crucial
Demand for LCL services will continue to grow, even apart from the impact of the pandemic. That’s why DACHSER, as a market leader in the German and European groupage market, has also expanded its maritime LCL network to include 70 weekly direct services to and from Germany. “With a focus on the main global routes, we are systematically expanding our dangerous goods capacity as well. This of course means serving the major markets in both the eastern and western hemispheres, such as China, India, and the US,” Freydag says. In 2021, DACHSER shipped around 19,700 cbm of dangerous goods as LCL with customers in the chemical industry. Dangerous goods thus already represent 15 percent of DACHSER ASL Germany’s LCL business. In addition to the usual port-to-port services, DACHSER also operates various direct import services to the hinterland or other European cities. For example, once a week LCL groupage containers travel directly from port locations such as Hong Kong, Shanghai, and Ningbo to ports such as Hamburg and Bremen - but also with direct loading to Frankfurt, Kaufbeuren, Cologne, Munich, Nuremberg, Stuttgart as well as Copenhagen and Gothenburg. Direct loading minimizes the risk of cargo damage and provides additional safety by eliminating deconsolidation at the transit terminal.
Furthermore, this increases profitability and achieves additional lead time advantages by rectifying bottlenecks in the port. “DACHSER’s global network connects all groupage transports on land and water. We link our own sea freight groupage container services to and from Germany to the comprehensive range of services offered by DACHSER European Logistics, thus enabling end-to-end service throughout Europe,” Freydag says. For storage and unloading, DACHSER is increasingly using its own branch infrastructure in addition to the standard container freight stations (CFS) at the ports. When port capacity is limited, companies thus benefit from additional dispatch quality and shorter transit times.
This concept, in keeping with the idea of “everything from a single source” links the European overland transport network with the global sea freight network - a feature that not every company can offer. “Thanks to the end-to-end solution of our LCL product, which goes beyond just sea transport, we can maintain high quality across the aforementioned carriers and offer transparent traceability of the goods,” Freydag adds.
The past two years have seen risk minimization in the global movement of goods become a crucial factor for success. To take full advantage of LCL shipping, it is crucial that pick-up and onward carriage are also handled in an integrated manner, thus ensuring expertise in the safe transport of dangerous goods along the entire transport route.
