DSV partners with Schneider Electric to launch new shipping model for improved sustainability and agility

DSV, the leading global supplier of transports and logistics, partnered with Schneider Electric, the leader in the digital transformation of energy management and automation, has designed and launched an industry-first multi-modal shipping model, using sustainable aviation fuels (SAFs) to help improve the agility and reduce the environmental impact of its supply chain.

Together with Schneider Electric, DSV has successfully deployed two innovative multi-modal shipping bridges—between Singapore and France; between Shanghai to France - to reduce Scope 3 carbon emissions from air freight. In total, Schneider Electric plans to design and execute eight global multi-modal bridges with its logistics partners that can be deployed on demand.

Schneider Electric estimates that these bridges, by using a combination of air and sea transport, will reduce the carbon emissions of these regional shipment lanes by up to 40%. Since the start of the pilot in March, Schneider Electric converted 50% of air freight tons to the multi-modal model on the Singapore to France bridge, operated in partnership with DSV. This resulted in up to 40% fewer carbon emissions

For many organizations, air freight is a core part of global supply chain delivery, despite the fact that it emits more carbon than sea freight. While SAFs can reduce the carbon impact, they are significantly more expensive than conventional jet fuel. By using more sea freight, which is cheaper, produces savings which can be used to purchase SAFs, further reducing carbon emissions.

Multi-modal shipping is widely used in the supply chain industry to support business continuity. However, it has not so far been used to reduce a company’s Scope 3 carbon emissions.

Schneider Electric’s new pilot schemes have allowed partners to test multi-modal shipping as a business-as-usual process on demand. Orders are delivered with agility and flexibility, either by air freight or multi-modal shipping, depending on capacity, air surges, margins, customer offers, and stock availability. Building on this end-to-end capability, the model is further enhanced with DSV participating in the use of SAFs, leading to the delivery path being 90% carbon neutral and self-sustaining. This gives Schneider Electric the agility to plan, decide, procure, execute, and govern the model, achieving a more resilient and agile supply chain.

“DSV and Schneider Electric both have strong commitments when it comes to sustainability and so we are thrilled to partner with them on this ambitious pilot. By working together, we are able to optimise Schneider’s supply chain and support their decarbonisation reduction goals, and we hope that this project will strengthen our existing partnership and lead to further collaboration on other new sustainability initiatives in the near future,” says Jakob Jeppesen, EVP Air & Sea APAC at DSV.

“At Schneider Electric, sustainability is at the core of our mission, and it drives us to innovate for the future.” said Mourad Tamoud, EVP Global Supply Chain at Schneider Electric. “We can’t do this alone: partnerships with our supply chain ecosystem and strategic partners like DSV are essential. We hope others are inspired by these possibilities, so we can collectively reduce carbon emissions.”

According to its net-zero roadmap, validated by the Science Based Targets initiative, Schneider Electric has committed to be net-zero ready across its operations—with an absolute carbon reduction target of 25% across the entire value chain by 2030.