Torus will provide resilient, agile and integrated defence supply chain solutions, helping the UK defence sector adapt to the evolving threat landscape and build the agile capacity required to enhance sovereign capability.

Designed to help address the UK Government policy shift to readiness, visibility and data exploitation, Torus draws on alliance members’ proven capabilities and mission-critical expertise in military domain, procurement and supply chain. The alliance is underpinned by a shared commitment of collaboration, compliance and continuous improvement to solve complex challenges in the UK defence market.

• Amentum will provide overall integration and programme management based on more than 60 years of support to UK defence operations, procurement, logistics support, programme/project delivery and transformation. Its global expertise, built over decades of defence, aerospace and national security experience in the USA and UK, ensures interoperability with allied sustainment systems and proven global buying power. Last September, Amentum announced plans to add another 3,000 people to its current UK workforce of more than 6,000 over the next four years.

• GXO will develop and operate innovative logistics solutions, leveraging its more than two decades of experience partnering with leading aerospace and defence organisations. With A&D operations spanning more than 30 global sites, GXO recently bolstered its UK defence capabilities through the acquisition of Wincanton, a longstanding trusted partner to the UK defence and industrial sector. GXO currently employs more than 60,000 team members across 450 sites in the UK and is a Gold Award level member of the UK’s Defence Employer recognition scheme for its work with the Armed Forces.

• Accenture will lead digital reinvention with a core role to deliver digital enablement and integrated decision support capability. Accenture’s deep experience of defence logistics information systems and digital transformation will enable real-time, single-version-of-the-truth visibility and smarter, data and AI-powered decision making that balance readiness, cost and resilience.

• Maersk will provide global integrated movement solutions utilising its extensive network across multiple modes to enable global reach ensuring compliance with stringent security standards for defence and government cargo whilst ensuring the scale of its owned assets provide agility and resilience to allow defence to plan and react to a changing need.

Loren Jones, Amentum Senior Vice President, said: “Our combined global reach and military domain experience, specifically Amentum’s proven success in deployed logistics and integrating complex systems for the U.S. Government, perfectly aligns with the UK Defence sector’s requirement for future operational resilience and it’s imperative to move beyond systems optimised for just-in-time to ones of assured readiness and global reach.” 

Gavin Williams, Managing Director, GXO UK & Ireland, said: “The defence sector is tasked with responding to dynamic global challenges which has created substantial demands on its supply chains. GXO’s proven capability in the global defence sector optimises efficiency and builds resilience in complex supply chains, providing leading defence organisations with the assurance they will have the adaptive capacity required to deliver with confidence.”

Mark Smith, EMEA Defence Lead at Accenture, said: “This alliance brings together unmatched expertise in logistics systems and data-driven digital transformation – enabling scalable, interoperable solutions that enhance mission readiness. Accenture’s deep defence logistics knowledge and cutting-edge digital capabilities, refined through working with over 20 NATO countries, can help ensure operational continuity and resilience in complex global environments.”

Beyond focusing on supporting UK sovereign mission readiness, the alliance is committed to investing in UK infrastructure, contributing to economic growth and fostering digital skills in local communities.

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As the conflict involving Iran intensifies, logistics and supply chain networks worldwide are feeling the strain. Rising tensions are once again placing strategic maritime chokepoints such as the Strait of Hormuz under heightened scrutiny, with carriers and insurers monitoring developments closely.

DHL has warned that volatility across Middle Eastern corridors is contributing to longer transit times, elevated insurance premiums and higher fuel costs. The company has indicated that contingency routing and risk mitigation measures are increasing operational complexity for customers.

Meanwhile, container lines are taking decisive action. In a customer advisory issued on 4 March 2026, Maersk announced it is temporarily suspending new cargo booking acceptance to and from several Gulf states – including the United Arab Emirates, most of Oman, Iraq, Kuwait, Qatar, Bahrain and parts of Saudi Arabia – until further notice, with exceptions for essential goods such as food and medicine. The carrier noted that ports including Jeddah, King Abdullah and Salalah remain operational, and advised customers to explore alternative routings or inland gateways where possible.

Maersk has also cautioned customers about elevated risk levels in Gulf waters, highlighting the potential for disruption, schedule adjustments and additional war-risk related costs as insurers reassess regional exposure.

Other major carriers including Hapag-Lloyd, CMA CGM and COSCO have similarly referenced increased insurance premiums and potential war-risk surcharges in affected regions, reflecting the broader risk environment confronting global shipping lines.

Data from container visibility specialist Vizion suggests the market reaction is already significant. According to the company’s Tradeview platform, container ports in the Arabian Gulf – particularly those located east of the Strait of Hormuz – typically account for around 3.4 million TEU of annual booked volume, representing an estimated US$140 billion in cargo value. However, Vizion reports that in the past two days daily bookings from shippers looking to import goods into these ports have fallen by 81%, highlighting how quickly geopolitical risk is influencing shipping demand and routing decisions.

While there has been no formal closure of the Strait of Hormuz, vessel traffic patterns have become more cautious. Shipping data indicates slower transit speeds and occasional holding periods as operators await security guidance before entering or exiting Gulf waters. Rather than large visible queues, the disruption is manifesting through staggered departures, extended voyage times and schedule unreliability – factors that ripple quickly through global container and energy supply chains.

The conflict’s impact isn’t confined to sea freight. Air cargo operations across key Gulf hubs including Dubai, Abu Dhabi and Doha have experienced periods of airspace disruption and operational constraints as authorities respond to regional security developments. Even temporary restrictions can reduce available capacity for high-value, time-sensitive goods. This dual disruption across ocean and air lanes has led to wider bottlenecks in sectors ranging from electronics to pharmaceuticals.

Even industries reliant on raw materials are under pressure. Heightened risk around key Middle Eastern transit corridors has raised concerns over the continuity of LNG and fertiliser exports, markets that are highly sensitive to any potential interruption in Gulf shipping flows.

For logistics professionals and supply chain planners, the current environment demands proactive risk management. Companies are revising routing strategies, building inventory buffers, and assessing alternative modes such as rail or air freight where feasible. With geopolitical tensions persisting, logistics leaders are preparing for continued volatility across critical transit points such as the Strait of Hormuz and the Bab el-Mandeb. Even the prospect of disruption is enough to reshape routing decisions, insurance costs and inventory strategies in 2026.

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When Maersk set out to transform its e-commerce fulfilment operation for its Danish retailer customer Flying Tiger, it faced a familiar modern logistics dilemma: how to scale rapidly, cope with extreme seasonal peaks, and maintain service levels, all within the constraints of an existing warehouse footprint and with tight implementation timelines.

The answer at its Wrocław facility in southern Poland came in the form of autonomous mobile robotics from Locus Robotics. I was lucky enough to be invited for a tour of this impressive site which, albeit not one of Locus’ largest installations by far, nevertheless highlights in a nutshell what cutting-edge robotics can bring to a project to drive efficiency and cost savings. My visit just so happened to be during the Christmas peak, which gave me particular insight into how well things were going.

The site serves as the central European hub for all of Flying Tiger’s European online orders (retail fulfilment remains out of Copenhagen), shipping orders across the EU from a single 5,700 sqm operation. Since going live in May 2023, it has become a showcase for how robot-assisted picking can deliver speed, flexibility and cost control in a fast-growing retail environment.

High-Growth Under Pressure

Before automation, the pick process was struggling. Manual productivity was running at around 40 order lines per person per hour, well below the 120 lines per hour target. The operation was characterised by long walking distances (up to 20,000 steps per picker per day), aisle congestion, heavy trolleys, long onboarding times and a growing risk of errors and injuries.

With Q4 volumes peaking at five times the average and only 22 weeks before the next peak season, Maersk needed a solution that could be deployed quickly, scaled easily, and funded in a way that avoided heavy capital expenditure.

Bots to the Rescue

After analysing a range of goods-to-person and person-to-goods automation options, Maersk selected a
mobile robot ‘person-to-goods’ RaaS (Robots-as-a-Service) model offered by Locus Robotics. The decision was driven by several key criteria: flexibility, rapid deployment, low upfront cost, ease of integration and the ability to scale both labour and automation in line with demand.

The RaaS commercial model was particularly attractive, for instead of committing to a fixed fleet size,
Maersk can scale robots up and down according to volume. This was an important advantage for a business shaped by influencer-driven spikes and intense seasonal surges. Just as importantly, the solution could be implemented in the existing building, which has a height limit of 12.2 m and no scope for major structural changes.

From decision to go-live took just 16–18 weeks, a timeline that was later recognised by Locus as one of its fastest and best implementations in Europe.

How it Works

At the heart of the operation is a fleet of Locus Origin robots, a nimble autonomous mobile robot designed for collaborative picking. Associates remain in their aisles while robots travel between locations, presenting the next task and carrying multiple totes for batch and multi-order picking.

Orders are orchestrated by the LocusONE platform, which integrates with Maersk’s INFOR WMS and dynamically clusters tasks to optimise pick paths, balance workloads and maintain service level priorities. The system supports multiple workflows, including batch picking, pick-and-pass, and point-to-point transport, enabling Maersk to adapt processes as volumes and profiles change.

Each robot guides the associate through the pick with a clear, multilingual interface (important to have in this region of Europe, close to the Czech/Slovakian borders), product images, tote position indicators and
built-in scanning. Locus’s patented autoidentification technology recognises the worker based on proximity, automatically switching the screen language to the associate’s preferred setting, a major benefit in such a multicultural workforce.

Navigation and fleet management are handled by proprietary AI, which continuously optimises routes,
avoids obstacles and balances robot traffic across the floor. The result is a system that can be deployed in
brownfield environments with minimal infrastructure changes and no fixed conveyors.

Transformational Results

The impact at Wrocław has been dramatic. Pick productivity has increased from 40 to 140 order lines per hour – a 250% improvement, if my maths is right. Onboarding time for new staff has been reduced from three days to just 20 minutes. Average walking distance has dropped from 20,000 steps to around 8,000 per day, significantly reducing fatigue.

The number of active packing stations has been increased from 16 to 40, and despite a reduction in available aisles for picking, overall throughput has increased substantially. Service performance has improved too, with 60–100% of parcels now shipped within 24 hours, and the Christmas cut-off date brought forward by six days compared to 2023. As I stood there watching order pass by in front of me, Flying Tiger seemed to be doing a – pardon the pun – ‘roaring’ trade in seasonal wrapping paper.

From a financial perspective, the results are equally compelling. Maersk has said that the introduction of Locus has significantly reduced pick process costs, equating to a 33% saving even after including the robot service fees. Forecasts for full-year 2025 point to a further 24% cost reduction.

There have also been significant soft benefits. For example, the site has recorded zero push-and-pull
injuries, sick leave has fallen by 15%, and employee retention has improved by 8%, reflecting a more attractive, less physically demanding type of work. I love to hear about those sorts of benefits.

Flexibility and Scale

For Locus, the Wrocław project is a textbook example of its core value proposition, namely unmatched flexibility and unlimited throughput. Unlike fixed automation, the Locus approach allows Maersk to add or remove robots in minutes, introduce new workflows without disruption, scale from dozens to hundreds of robots as volumes grow, and operate across multiple shifts or 24/7 without physical reconfiguration.

The platform has already proven capable of supporting 25,000+ units per hour on a single site and handling 150,000 lines in a single day in other deployments. While the Wrocław operation does not yet operate at those extremes, the architecture ensures that throughput can grow well beyond current requirements.

Crucially for Maersk, this flexibility aligns perfectly with Flying Tiger’s volatile demand profile. Whether
reacting to a viral social media trend or preparing for a Q4 surge, capacity can be adjusted simply by deploying more robots.

European Blueprint

The Wrocław project was Locus’s first major automation deployment in Europe with Maersk and is already being viewed as a blueprint for other sites. The modular nature of the installation makes it easy to replicate in additional warehouses. From Maersk’s perspective, the collaboration has demonstrated that high levels of automation do not require long lead times, heavy CapEx or purpose-built facilities. Instead, robotics can be layered onto existing operations to deliver rapid, measurable improvements.

For Flying Tiger, it means faster order fulfilment, better service levels for customers across Europe, and the confidence that its logistics partner can keep pace with growth.

A Modern Model

As European ecommerce continues to grow, and as labour markets remain tight, the Maersk–Locus–Flying Tiger partnership offers a compelling model for other retailers and 3PLs. By choosing a flexible, rapidly deployable robotic solution, Maersk has transformed a struggling manual process into a highperformance
fulfilment engine capable of absorbing growth, coping with volatility, and delivering measurable financial returns.

For Locus Robotics, Wrocław stands as a high-profile demonstration of how its technology can support complex, high-growth operations in real-world conditions. And for Flying Tiger’s customers across Europe, it simply means their colourful household items, party accessories and impulse buys will arrive faster and more reliably than ever.

The post Easy Robotics for Flying Tiger appeared first on Logistics Business.

The use of alternative fuels to fossil-derived products across a wide range of logistics applications continues to increase as companies move forward into more environmentally friendly operations with zero or low emissions – electricity, hydrogen, compressed natural gas (biomethane) or methanol.

Now that many retailers have rigorous sustainability policies, this means that they will be seeking out and then favouring ‘green’ partner companies over their less sustainable competitors. An example this is the introduction by Maersk of the fifth ship in a series of 18 large dual-fuel methanol vessels scheduled for delivery from last Autumn through 2025. The ‘Alexandra Maersk’ (pictured) – 47,700 tonnes and 16,592 TEU – was named in a ceremony at Felixstowe last October. These new methanol-enabled ships are at the core of Maersk’s ambitious decarbonation plans as low emission methanol can reduce the greenhouse gas (GHGH) emissions by 65 to 90 per cent.

A major user of Maersk’s services is the well-known British and international retailer Primark, which employs more than 80,000 people across 17 countries. Their CEO, Paul Marchant, said during the naming ceremony: “We’re committed to reducing the impact we have on the environment across our entire operation, including our supply chain. Through our partnership with Maersk we’ve started to introduce green fuel alternatives when shipping our products by using Maersk’s ECO Delivery Ocean product and replacing fossil fuels with green fuel alternatives, we’re reducing our greenhouse gas (GHG) emissions in our ocean shipping.”

On a rather different scale, Carisbrooke Shipping, based in the Isle of Wight and Rotterdam, operate 26 vessels between 5,000 and 17,000 tonnes in European waters. Natalia Walker of Carisbrooke explained: “We’re part of a consortium, led by Carnot Ltd, which has been awarded £2.3 million to deploy its 70% efficient 50kW marine hydrogen engine to provide auxiliary power on a general cargo vessel. The project will explore how hydrogen can be used to generate electrical power on board cargo vessels. The demonstrator vessel – the ‘Kathy C’ (4,151 tonnes) – is a UK-flagged general cargo vessel designed to carry multiple types of dry cargo from grain to aggregates and is scheduled to undergo real-world testing this year.”

The Carnot 50-kW engine is a precursor to 200 to 400kW auxiliary engines, and eventually to 1 top 10MW main engines. The hydrogen fuel is supplied by Compass Syngas Solutions, based in Deeside, Wales, who secured almost £4 million in government funding to make its biomass and waste-to-hydrogen plants even greener by using carbon capture from its hydrogen production from waste wood and other selected non-recyclable materials.

Electric Vans

On land, many developments are taking place, very much dependent on operating requirements: Vauxhall has started customer trials with its Vivaro hydrogen van, involving some of the UK’S largest fleets. James Taylor, Vauxhall’s MD, said: “As the UK’s best-selling electric van manufacturer for the past three years, we’re already leading the way in electrifying Britain’s businesses.” To emphasise this, Royal Mail have just taken delivery of their 6,000th electric vehicle.

Marks and Spencer have introduced 85 lower emission vehicles to its fleet. Five of these are battery electric Renault 42-tonne units which will deliver to 30 M&S across London and the South East. In addition, 80 new trucks, fuelled by compressed natural gas (biomethane), will join the fleet, 50 of these being operated by Gist in its food supply chain system. Julian Bailey, Head of Group Transport at M&S, commented: “Adapting our logistics network is vital in achieving our Plan A Net Zero ambition. We’re committed to reducing carbon emissions from our transport.”

In Germany, Nippon Gas and the Hoyer Group have introduced the first hydrogen-powered truck to transport dry ice. The truck has short refuelling times and a long range, which is exactly where a battery electric truck reaches its limits. Watch this space for more fuel innovation.

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The logistics industry is facing a number of challenges relating to inventory visibility and inaccuracy. Stock integrity represents the foundation of a well-functioning warehouse, ensuring that inventory is in the right place, in the right quantities and in the right quality and storage conditions. Ensuring availability through an accurate and up-to-date system of record addresses critical issues that impact efficiency and profitability. It is estimated that warehouse operators lose up to 30% of their productivity and experience 15% increases in costs caused by sub-optimal slotting. Therefore, detecting misplacements to verifying quantities and conditions is of paramount importance as operators are looking to maximise their efficiencies and profitability.

The Integrity module brings together existing and new functionality that has already allowed customers such as Maerskto reduce their Warehouse Management System (WMS) errors by 15% and save 6 hours per day by quickly locating stock. It has allowed companies like Yusen Logistics to save 98 hours per month by moving to daily wall-to-wall counts.

Elevating warehouses with cutting edge technology

The DexoryView module is redefining the user experience of DexoryView, ensuring it provides even deeper analysis on the health of the warehouse through groundbreaking use of LiDAR, AI-powered image analysis and advanced object identification. These features deliver an unprecedented level of accuracy and insight into their stock, covering all key storage methods, including, pickface, block and bulk storage.

Key new features included within the DexoryView Integrity module include:

• DexoryView Integrity includes basic inventory checks – Through the use of fully autonomous robots, DexoryView Integrity will help businesses automate their inventory checks and establish a single source of truth for warehouse tracking and efficiency.
• Bulk and block stack volume assessment – Provides accurate item counts of non-palletised units in block stack floor locations helping operators promptly address discrepancies and maintain inventory accuracy.
• Pick volume assessment– Provides count estimates for inventory stored in pick locations, helping operators track remaining cases and detect discrepancies, enabling exception-based pick area management with reduced risk and clear visibility on replenishment needs.
• Pallet analysis – Identifies and tracks rental pallets, reducing costs associated with lost or misplaced assets.
• Empty location checks – Allows businesses to determine which locations currently have no inventory, removing the need for manual checks.

These capabilities not only safeguard inventory health but also enhance workflow precision, empowering businesses to eliminate costly inefficiencies and errors. For organizations like vente-unique.com, the DexoryView Integrity has allowed the organisation to move from 92% to 98% accuracy in the matter of days. With businesses like GWC, DexoryView has allowed for an impressive 99% accuracy in tracking and identifying inventory, which has allowed the business to streamline its processes and achieve significant cost savings.

“By driving innovation, we enable warehouses to operate with greater precision and efficiency,” says Andrei Danescu, CEO and Co-founder at Dexory. “This next level of functionality empowers businesses to make smarter, data-driven decisions while reducing disruptions and enhancing operational performance. With the new capability from DexoryView, we are committed to addressing the most pressing challenges our customers encounter. There will be more announcements in the near future about other additional functionality.”

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Drones use RFID for Warehouse Inventory Management

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The pilot explores the potential of RFID technology and autonomous drones to enhance inventory visibility in one of On’s warehouses. Verity, On, and Maersk shared a vision for this project: to enhance inventory visibility in supply chain to unprecedented levels, near operational omniscience. The fusion of RFID, AI, and fully autonomous embodied AI agents for inventory tracking is addressing long-standing visibility challenges and creating fully transparent and efficient operations for operators and retailers alike.

Verity’s AI-driven, vision-based system delivers high-value inventory insights in more than 100 warehouses globally, in collaboration with various warehousing operators. With agile drones, unmatched reliability, and seamless scalability, Verity advances inventory methodologies. One limitation, however, has been tracking inventory beyond line of sight — until now. By integrating RFID, Verity extends its vision inside and beyond boxes, enabling precise tracking and identification of individual items, such as products and packages, at every stage of the warehouse lifecycle, realizing the promise of a true warehouse digital twin.

The Verity drones, augmented with RFID, autonomously navigate warehouse aisles, scanning RFID tags with over 99.9% accuracy at rates of up to 1,000 tags/items per second. The system enables seamless and efficient RFID tracking throughout warehouses without the need to redirect workflows, overcoming the challenges of traditional methods.

Traditional RFID systems, though commonly used for traceability, face notable challenges in warehouse environments. To remain scalable, RFID tags or other passive emitters must stay inexpensive, which limits their range. This constraint necessitates readers to operate within close proximity, leading to the widespread adoption of bottleneck solutions such as gates. In the fast-moving world of supply chains and warehousing, true visibility requires a mobile, agile, and autonomous reader — something Verity has delivered in the pilot with On and Maersk.

“On is an innovation company at heart, and we are excited to push the boundaries of what’s possible in logistics through this pilot project with Verity and Maersk,” said On co-founder Caspar Coppetti. “This exploration of cutting-edge solutions allowed us to test and evaluate new ways to enhance efficiency and transparency in our supply chain”.

Key testing milestones

To date, the collaboration between Verity, On, and Maersk to test the RFID-enabled embodied AI has achieved several significant milestones:
● The tests were conducted at a Maersk facility in California to evaluate the system in a high-volume, real-world warehouse environment.
● The testing phase spanned three months to validate the system’s performance for client-specific and wall-to-wall inventory counts.
● Over 1,500 flights completed during the testing period.
● More than 80 million RFID reads performed, covering approximately 1.25 million individual tags.

“At Maersk, we are committed to leveraging advancements in logistics through cutting-edge technology,” said Jason Walker, Head of Maersk Contract Logistics, North America. “The exploration of RFID-enabled drones in our warehouses is a testament to our dedication to innovation and operational excellence. Importantly, this technology enhances the capabilities of our team, empowering them to focus on more strategic tasks and drive continuous improvement.”

The early use of the new, RFID-augmented Verity system has uncovered the following integration for this technology in warehouse operations. The system is able to detect tags at a rapid rate, with an estimated productized reading speed of up to 1,000 tags/items per second. This allows for precise identification of each item with a 99.9% success rate. Furthermore, the technology enables Verity to precisely localize each tag in the warehouse. This unlocks the tracking of items throughout the warehouse lifecycle, opening visibility capabilities that are unheard of.

An innovative approach for continuous improvement in operations

Integrating RFID technology into autonomous inventory operations is a significant step for Verity toward creating a comprehensive, data-agnostic intelligence system for warehouses. This innovation provides clients with a holistic view of inventory management, delivering unparalleled insights and control. “By fusing AI, autonomous data collection at scale, and RFID, we are bridging the gap between the digital and physical worlds to deliver complete visibility across supply chains,” said Verity CEO Raffaello D’Andrea.

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The facility’s advanced services include end-to-end logistics solutions, from origin consolidation to omnichannel fulfillment. Maersk’s Warehouse Management System will play a key role by offering real-time inventory visibility and allowing Levi’s to adjust production on the fly, further optimizing operations. The location will also serve as a training hub, ensuring continuous improvement in operational standards.

A key feature of the Groveport facility (pictured left) is its EuroSort system, which supports batch picking, enabling warehouse pickers to gather multiple orders in one trip. A Maersk spokesperson explained the technology’s impact: “It’s a proven solution for sorting apparel, operating at high speeds, and can process up to 28,000 products per hour and handle up to 100 million units per year.” The system also includes capabilities for automatically handling leftover cartons, reducing the manual workload for pickers and enhancing overall operational efficiency.

The first of two EuroSort systems is already 70% installed, with the second expected to be operational by November. The entire setup is projected to go live in early 2025. These advancements in technology allow Levi’s to focus on a direct-to-consumer-first (DTC-first) business model, with faster, more accurate fulfillment processes.

Levi Strauss’ decision to collaborate with Maersk comes after the company announced its plans to shift away from a primarily owned-and-operated logistics network in the U.S. and Europe. Instead, Levi’s is leaning on third-party logistics services (3PL) like Maersk to reduce fulfillment costs while still maintaining high service levels. Craig Jones, Levi Strauss’ Senior Vice President of Global Distribution and Logistics Operations, highlighted this approach: “This Maersk-designed and operated facility is an important step in our strategy to transition to a hybrid distribution and logistics network that balances omni-capable owned-and-operated facilities with technologically advanced 3PL facilities like this one.”

The Groveport center marks the tenth global facility that Maersk operates for Levi Strauss, with other centers mostly located in Asia. As Levi’s continues to evolve its distribution strategy, the partnership with Maersk highlights the retailer’s commitment to embracing cutting-edge technology and efficient logistics to meet the growing demands of the modern retail environment.

Levi Strauss’ shift towards leveraging 3PL providers like Maersk reflects a broader trend within the retail industry, where companies are increasingly focusing on cost-effective and technologically driven solutions to meet consumer expectations for fast and seamless omnichannel experiences. This new fulfillment center will allow Levi’s to continue scaling its operations while maintaining a competitive edge in the global apparel market.

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On August 22, 2024, Maersk, the global leader in integrated container logistics, marked a significant achievement by inaugurating its largest logistics park in the Middle East, located at Jeddah Islamic Port, Saudi Arabia. This state-of-the-art facility, sprawling over 225,000 square meters and developed at a cost of $250 million, is a cornerstone of Maersk’s ambitious strategy to bolster its logistics capabilities in the region. It aims to meet the growing demand for efficient, integrated supply chain solutions across the Middle East.

Strategic Location and Comprehensive Services

The park’s location at Jeddah Islamic Port, one of the busiest and most strategically important ports in Saudi Arabia, underscores its critical role in the region’s logistics landscape. The facility is designed to serve as a hub for a wide range of industries, including retail, automotive, technology, and pharmaceuticals. It offers a comprehensive suite of services, from multimodal transportation options to temperature-controlled warehousing, ensuring that businesses can efficiently manage their supply chains from a single, centralized location. The park is also equipped with advanced customs clearance capabilities, which will streamline the movement of goods and reduce lead times, further enhancing the efficiency of regional and global trade.

Sustainability at the Heart of Operations

A defining feature of Maersk’s new logistics park is its strong emphasis on sustainability. In line with the company’s global commitment to reducing its environmental impact, the facility incorporates several eco-friendly initiatives. Notably, 70% of the park’s energy requirements are met through a large solar panel array, significantly reducing its carbon footprint. Additionally, the park employs electric-powered equipment and vehicles for its operations, minimizing emissions and contributing to a greener supply chain. These initiatives are not only beneficial for the environment but also align with global trends towards more sustainable business practices, positioning Maersk as a leader in the green logistics movement.

Supporting Saudi Arabia’s Vision 2030

The opening of this logistics park is closely aligned with Saudi Arabia’s Vision 2030, an ambitious blueprint aimed at diversifying the Kingdom’s economy and reducing its dependency on oil exports. By enhancing the logistical infrastructure at Jeddah Port, Maersk’s facility is set to play a crucial role in facilitating trade, attracting foreign investment, and boosting economic growth in Saudi Arabia. The park is expected to support the development of local industries, create job opportunities, and contribute to the overall modernization of the Kingdom’s logistics sector.

Strategic Importance for Global Trade

As global supply chains continue to evolve, the need for integrated and efficient logistics solutions has never been more critical. Maersk’s new logistics park in Jeddah is a testament to the company’s forward-thinking approach and its commitment to addressing the complex demands of modern logistics. The facility’s strategic location at Jeddah Port, combined with its cutting-edge capabilities, positions it as a key node in the global supply chain, facilitating the seamless movement of goods across the Middle East and beyond.

By establishing the largest logistics park in the Middle East, Maersk is not only reinforcing its presence in the region but also contributing to the broader global trade ecosystem. The Jeddah Islamic Port is already a vital gateway for trade, and with the addition of this advanced logistics facility, it is poised to become an even more critical hub for businesses looking to optimize their supply chains.

The inauguration of Maersk’s logistics park at Jeddah Port marks a significant advancement in the Middle East’s logistical capabilities. This development not only strengthens Saudi Arabia’s position as a regional logistics leader but also underscores Maersk’s commitment to sustainability and innovation in global trade. As the facility begins operations, it is expected to play a pivotal role in driving economic growth, supporting Vision 2030, and enhancing the efficiency of supply chains across the Middle East and beyond.

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The Environmental Impact of Freezing Goods at -15 Degrees

Energy Consumption and Emissions

Freezing goods at -18 degrees Celsius requires substantial energy. Lowering this temperature to -15 degrees Celsius reduces the energy needed for refrigeration. Refrigeration accounts for a significant portion of energy consumption in the food supply chain, and decreasing the temperature difference by just three degrees can lead to notable energy savings. According to Hoffmann, these savings are substantial enough to be compared to the environmental impact of removing millions of cars from the road.

Quantifying the Impact

While Hoffmann did not specify exact figures at the conference, the comparison to car emissions is compelling. The transportation sector is a major contributor to greenhouse gas emissions, with millions of cars emitting significant amounts of CO2 annually. By reducing the energy needed for refrigeration, the supply chain can significantly cut its carbon footprint. This change is not just about reducing electricity use but also about lowering the demand for fossil fuels used to generate this electricity.

The Technical Feasibility and Industry Implications

Product Quality and Safety

A primary concern when altering freezing temperatures is maintaining product quality and safety. However, studies and industry experience indicate that many frozen goods, particularly non-perishable items like vegetables, processed foods, and certain meats, can be safely stored at -15 degrees without compromising quality or safety. Adjusting the freezing temperature requires careful monitoring and possibly slight modifications in packaging and handling processes to ensure product integrity.

Cost Savings

Besides environmental benefits, there are economic incentives for businesses. Lower energy consumption translates to lower operational costs. This change can result in significant cost savings across the supply chain, from producers to retailers. Reduced refrigeration costs can also potentially lower prices for consumers, creating a ripple effect of economic benefits.

Broader Implications and Adoption

Industry Adoption

Widespread adoption of this practice would require a coordinated effort across the supply chain. Stakeholders, including food producers, logistics providers, and retailers, would need to align on standards and best practices. Educational initiatives and pilot programs could help demonstrate the feasibility and benefits of this approach.

Policy and Regulation

Governments and regulatory bodies could play a crucial role in facilitating this transition. By setting guidelines and providing incentives for reducing energy consumption in food storage, policymakers can accelerate the adoption of lower freezing temperatures.

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High performance in logistics can be maintained by extracting insights from data and taking practical steps. “Data itself has no value,” states Rob Smedley, former Ferrari, Jordan and Williams F1 race engineer, “insight is everything. Complexity requires having a data strategy.” Warehouses may be less glamorous than race tracks, but they are also hubs of innovation.

Polycrisis logistics

When multiple supply chain disruptive events happen concurrently how can they be tackled? “Resilience planning is key,” says Mike Fahy, CEO of Neovia, a contract logistics provider operating in 20 countries and with 80 hub facilities and 8000 employees. The 3PL specialises in service parts logistics for automotive, industrial and tech customers, formerly being Caterpillar Logistics Services.

Fahy advises logisticians to tackle ‘polycrises’ by multi-sourcing, embracing technology and strong cybersecurity. “We’re not back to just-in-time yet, after the pandemic. We’re still at just-in-case for supply. Warehouse space is relaxing a bit, depending on the location.” Neovia use Dexory to create a ‘digital twin’ of each warehouse, providing visualization and interpretation of inventory stock. For example, the Dexory View dashboard enables pick face analysis of volumes.

Neovia use other tech, like Protex AI’s warehouse CCTV system, which reduced safety incidents by 80%. “New tech creates disruption,” Fahy emphasises, “being part of change is key.” He also praised Athingz – an autonomous supply chain service utilising machine learning to aid sales inventory optimisation, planning and execution. Real-time analytics with a virtual control tower helps forecasting freight lanes, both inbound and outbound. Extended reality, or VR, is used by Neovia for training, using tech from Elm Park Labs. Apple’s Vision Pro is tipped by Fahy to become a handy tool.

Supply chain design, of the number and location of distribution centres, leads to a tech-based materials handling approach. Simulation can be used prior to construction to study the average flow, slow days and peak operations. “Maximising cubic optimisation is key,” according to Fahy, and robotics is paramount. His company are piloting self-driven HGV lorries, remote driving of warehouse reach trucks and remote monitoring of assets.

Visibility gap

Only 6% of supply chain managers claim to have full global visibility. Gaps can lead to out-of-stock or over-stocking issues. The distribution centre is where some visibility is lost, due to damage, loss, theft or errors that occur. The visibility gap is an intelligence gap. An estimated 6500 hours per year can be spent on stock checks for a typical DC, say Dexory. Starting accuracy for their customers is 91-95%, with 24 minutes on average taken to resolve discrepancies. Dexory’s solution claims to increase accuracy to over 99%, which is better than warehouse drones can achieve.
GE Appliances are one of many manufacturers using temporary, overflow warehouses. “That can make it harder to maintain accuracy,” Harry Chase, GE Senior Director for Central Materials, says. “The quality and timeliness of data is crucial.” Dexory can be used for better slotting and stock consolidation, by freeing-up space and identifying bottlenecks.

Machine help?

Generative AI may create new strategies in logistics, for example in transport routing. Chris Coote of Dexory says AI is less intuitive than a human but provides fast answers and concepts. “Embrace limitless possibilities to build a smarter, safer ecosystem in the DC,” he exhorts.

Wincanton, a 99 year-old British third party logistics operator with 21000 staff, are in the process of being acquired by CEVA Logistics, part of the giant French shipping line CMA CGM. Paul Durkin, Chief Customer and Innovation Officer, has a practical view of robotics and automation. Companies should invest in tech, he argues, because labour costs are rising, automation costs are falling and there is a demand for short lead times in logistics. “There’s no longer a long payback time for this equipment,” he says, looking for a 20% return of capital deployed.

The downsides to such investment are the interest on capital expenditure, competing demands for investment and the proliferation of software and hardware, which makes it difficult to be certain what to purchase. “Retail customers spend on their ‘front of house’ (shops and stores). We’re ‘back of house’,” adds Durkin. Wincanton has re-organised itself to lean towards IT and technology, seeing 3PL as a service. Owning the IP of software in-house is important for the company. “We can’t rely on being an asset-based business, with just trucks and sheds,” he adds. Automation can solve customer problems. “Commercialize it. Value creation leads to long-term success.”

Industrial collaboration is a good thing, according to Durkin, who was speaking on the day the CEVA deal was being finalised. “There’s room for it. Warehouses haven’t evolved that much. We all need to accelerate our journey and get slicker. Wincanton need 30 upgrade projects a year, but only have the bandwidth for half that.“

Generation logistics

Getting the organization’s design right is key. “Size isn’t everything. Start small with automation and robotics, get used to it, be prepared to fail,” he advises. Wincanton work with smaller, nimble suppliers, including Dexory. “Now we have proof-of-concept on-site we can invest further. There are no guarantees, but we have created headroom.”

Automation and robotics can inspire colleagues and attract young people into the sector. It can lead to upskilling of existing staff. ‘Generation logistics’ is a slogan aimed to elevate the industry, make it sexier. New entrants to the market, like Hived and everstox, backed with venture capital by investors including Maersk, are on a fast track, fuelled by data to innovate and increase competition in logistics. Our industry is en vogue. Make hay and rejoice.

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