DHL’s sustainable fuel targets for shipping face supply challenges

Global supply chain, express and forwarding provider DHL, as a whole has, set a target of 30% sustainable fuel use across all modes of transport and buildings by 2030 and net-zero emissions by 2050.

“The target, both in sustainable aviation as well in sustainable marine fuel, is to reach a share of 30%. We try to work there with the carriers on the one hand, and also with our customers. I'm trying to convince them of the necessity of this, and also of the different ways how you can use it,” Niki Frank, CEO for Asia-Pacific, DHL Global Forwarding told a media briefing last week. The briefing was held on the sidelines of an exhibition by DHL in Singapore showcasing sustainable solutions to customers.

DHL Global Forwarding is one of the world’s largest buyers of containerised ocean freight.

The forwarding business, unlike other parts of DHL business in supply chain and express, is asset light so it has to work with its suppliers and partners to price sustainability for example choosing more efficient carriers that use aircraft and vessels with higher efficiency. The forwarder also works with its customers on using multiple modes of transport as well on route optimisation, although the latter Frank noted has “a natural limit”.

“We have signed up a number of customers here in Asia and also globally. We're working also with customers on certain routes. So rather than going and trying to inset all of their emissions at once, we also work in phases with customers, so starting with some of their key lanes, and then gradually expanding that,” he explained.

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However, the supply of sustainable fuels across all three modes of aviation, marine and trucking remains an issue.

Asked by Seatrade Maritime News how confident DHL Global Forwarding was of achieving its sustainable fuel targets for ocean freight Frank said, “We are doing our best to get there”, and this includes working on fuel supply.

“We're working with carriers as well, who on their own try and get that capacity and supply, but we definitely need more capacity and more supply coming into the market, from pure mathematical perspective, otherwise, 30% is very hard to achieve.

“We’re not giving up on this,” he stated.

Meanwhile efforts to improve efficiency and sustainable on routes between Asia and Europe and Asia the US East Coast have faced a set back due to the Red Sea crisis and Houthi attacks on commercial vessels forcing container carriers to reroute via Cape of Good Hope adding seven to 14 days extra to voyages.

“I would say it's a temporary challenge that we're facing. We're all hoping that at some point conflict in the Middle East subsides again, and that carries can again move by the most efficient route through the Suez Canal,” Frank said.

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