<![CDATA[ Kerry Logistics Network releases 2023 financial results ]]> Kerry Logistics Network Limited has announced the Group’s annual results for 2023.

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Kerry Logistics Network Limited has announced the Group’s annual results for 2023.

  • Revenue* decreased by 42% to HK$47,408 million (2022: HK$82,330 million)
  • Core operating profit* dropped by 61% to HK$2,207 million (2022: HK$5,645 million)
  • Core net profit* decreased by 69% to HK$1,214 million (2022: HK$3,952 million)
  • Integrated Logistics (‘IL’) business recorded a segment profit* of HK$1,295 million (2022: HK$1,385 million), which represents a decrease of 7%
  • International Freight Forwarding (‘IFF’) business recorded a segment profit* of HK$1,394 million (2022: HK$4,721 million), which represents a drop of 70%

Vic Cheung, Group Managing Director of Kerry Logistics Network, said, “2023 was undoubtedly a challenging year globally. Nevertheless, the global economy was in a better shape than it was in 2022. For the global logistics industry, while growth stalled, both freight rates and volume saw a slight rebound as the market continued to normalise gradually. Despite a tough market, new opportunities emerged amid changing consumer demands and the reshuffle of global supply chains. KLN Group was able to turn challenges into opportunities and provided customers with viable and cost-effective alternatives to keep their cargoes moving and delivered. KLN Group’s overall performance in 2023 was in line with expectations and on par with global peers.”


Segmental Reporting

During the period, KLN Group took out the E-commerce and Express business from its segmental reporting following the transfer of companies engaging in express delivery services in the Asia Pacific and Europe to S.F. Holding in 2023 Q3 and the subsequent announcement in December 2023 to deconsolidate Kerry Express Thailand through dividend distribution.

The purpose of the restructuring was to reinforce KLN Group’s strategy of focusing on its core business of integrated logistics and international freight forwarding, with an aim to enhancing its overall performance and prospects.

Integrated Logistics

The IL division overall reported a 7% decrease in segment profit, dragged down by the drop in the Hong Kong business as a result of the shrunken demand for pandemic-related services and a slower recovery of the retail market than anticipated. Nevertheless, despite the performance of the Hong Kong business, the IL division in other markets recorded growth.

In the Mainland of China, despite a delay in market recovery, the IL business recorded a 17% increase following the successful execution of a series of cost management measures. The IL business in other parts of Asia recorded an 11% increase mainly supported by the stable performance of Kerry Siam Seaport in Thailand.

International Freight Forwarding

The IFF division reported a 70% decline in segment profit in 2023 due to excess inventories, subdued purchasing power and stagnant export growth, in particular in Asia. The drop in air and ocean freight rates since 2022 Q3 from the all-time highs in 2021 as the global logistics market normalised has caused further contraction in profit margin in 2023, compared to that of 2022.

Nonetheless, riding on stabilised freight rates and a pick-up in consumer demand, KLN Group delivered sustainable results on the Asia-US trade routes and remained the leading player in the world’s busiest trade lane in 2023.

In 2023, the Group continued to leverage the strengthened resources with S.F. Holding to capitalise on the cross-selling and collaborations in various verticals and businesses. A joint venture was formed to manage the international cargo terminal of the Ezhou Airport in Central China.

Various mega industrial projects were completed and records were broken by project logistics teams in the Mainland of China, Central Asia and Europe in 2023. The segment delivered satisfactory results and is expected to become one of the development drivers of the IFF division soon.

Vic Cheung concluded, “Global growth is likely to remain weak in 2024. The Red Sea crisis is bringing new variables to the Group’s IFF business. Nevertheless, we are determined to provide customers with alternative solutions in the near-term and are optimistic that our IL business in Asia is likely to benefit from the shifts in the supply chain in the mid-term. KLN Group’s agility, resilience and innovation in providing solutions powered by its global network, solid presence in Asia and the most diversified service offerings will again enable the Group to come out on top. Looking ahead, the Group will continue to create synergies with S.F. Holding through extensive collaborations, actively identify new opportunities to grow its business sustainably and deliver greater value for its shareholders.”

Source: Kerry Logistics Network

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<![CDATA[ Estée Lauder partners with Bolloré Logistics ]]> Early 2024, The Estée Lauder Companies Asia-Pacific (ELC APAC) formally opened its regional distribution center operations with Bolloré Logistics at Blue Hub in western Singapore.

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Early 2024, The Estée Lauder Companies Asia-Pacific (ELC APAC) formally opened its regional distribution center operations with Bolloré Logistics at Blue Hub in western Singapore.

The official ribbon cutting ceremony, which featured remarks from ELC APAC and Bolloré Logistics management teams, convened more than 50 people. This event marks a new chapter in the collaboration between the two companies.

This new distribution center will play an essential role in ELC APAC’s broader distribution and logistics network and increase ELC’s capacity to support the growing demands of the region. The sustainability features of the space will also help contribute to the company’s Climate Transition Plan.

In operation since 2019, Bolloré Logistics’ “Blue Hub” has been recognized as a next-generation warehouse built on sustainability and innovation criteria. A winner of the “Supply Chain Innovation of the Year 2019” Supply Chain Asia Awards, Blue Hub houses advanced logistics infrastructure, including a six-story spiral conveyor and a fully automated and centralized multi-shuttle system. This unique storage consolidation offers better storage density and retrieval performance with a smaller energy footprint compared to conventional systems. For building sustainability, Blue Hub was awarded the Green Mark Platinum, the LEED Gold and BiodiverCity labels, as well as the Singapore Environmental Achievement (SEAA) award given by the Singapore Environment Council (SEC) for the transport and logistic sector.

ELC APAC will leverage 9,000 sq m of space in the Blue Hub as their regional distribution center. Inventory migration started in September 2023 and was successfully concluded in November 2023. The facility now manages ELC APAC’s regional warehousing distribution and value-added services for 12 of the company’s brands; providing a full range of logistics solutions, but also air and sea transport, cross-border trucking, customs declarations, warehousing, and value-added services such as labeling and kitting.

“We take immense pride in being the main logistics partner of ELC APAC in Singapore and celebrate the deepening of the partnership between the two companies. ELC and Bolloré Logistics share a mutual dedication to sustainability, and we continue steadfast in our commitment to innovating and consistently addressing their requirements,” said Mr. Loig Pavard, CEO, Bolloré Logistics Singapore.

Source: Bolloré Logistics

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<![CDATA[ DACHSER continues its trajectory, expanding its worldwide network ]]> DACHSER’s Road Logistics business field—which comprises the transport and warehousing…

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DACHSER’s Road Logistics division, encompassing the transportation and storage of industrial and consumer goods (European Logistics) as well as food (Food Logistics), saw a 1.8% rise in revenue to €5.8bn in 2023. However, there was a contrasting drop of 4.7% in the number of shipments and 6.5% in transported tonnage.

The European Logistics segment achieved revenue of €4.4bn, roughly matching the exceptional performance of 2022. Business performed well across European units, with Iberia leading the way with a revenue increase of over 2%. Despite this, overall shipment numbers and tonnage decreased due to Germany’s sluggish economy, which also adversely affected neighbouring countries in the North Central Europe region.

In 2023, the Food Logistics segment also experienced a prosperous financial year, recording a 9.7% revenue increase to €1.4bn. This revenue surge was driven by positive business growth in Germany, as well as from acquisitions such as Müller Fresh Food Logistics in the Netherlands and the remaining shares in DACHSER Hungary. DACHSER Food Logistics transported a total of 10.9m shipments, slightly up from the previous year, while tonnage decreased by 3.8%.

In the Air & Sea Logistics division, weak demand and increased capacity in air and sea freight had a significant impact. Plunging freight rates led to a 46.3% decrease in revenue compared to 2022, reaching €1.3bn. Although the number of shipments rose by 2.4%, tonnage fell by 7.9%.

Contract Logistics, involving transport, storage, and customer-specific value-added services, underwent substantial expansion in 2023. DACHSER invested in additional capacity, increasing pallet spaces to just under 400,000. Presently, DACHSER offers over 3m pallet spaces across 164 warehouse locations on five continents.

Looking ahead, Eling announced DACHSER’s intention to further integrate Road Logistics and Air & Sea business fields. “In the upcoming years, significant growth will stem from markets outside Europe. To continue delivering high-quality, reliable service globally, we aim to closely align the processes and systems of our two business fields to develop an integrated global, door-to-door groupage solution named ‘Global Groupage’.”

In 2023, DACHSER’s workforce expanded by over 1,100 individuals to approximately 34,000, reflecting the growth of sales and IT teams, as well as acquisitions such as Müller Fresh Food Logistics and ACA International.

 

Source: DACHSER

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<![CDATA[ Maersk launches new facility in Tijuana, Mexico targeting cross-border trade ]]> A.P. Moller – Maersk (Maersk) has launched a new 30,000 sq m facility for its customers in the Tijuana area, targeting cross-border trade.

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A.P. Moller – Maersk (Maersk) has launched a new 30,000 sq m facility for its customers in the Tijuana area, targeting cross-border trade.

Recognizing the immense potential of Tijuana as a key player in trade between US and Mexico, Maersk has chosen to establish a new site in the city. Located in Prisma XII, Pacifico Industrial Park in Tijuana, Baja California, the site targets customers in the technology, automotive, retail, and lifestyle sectors who are looking for cross-border capabilities.

The new facility enjoys a strategic geographical advantage, positioned near major commercial ports, such as Los Angeles/Long Beach, California and Ensenada, Mexico. It lies just 15 km from the Otay Commercial Port, nestled between Otay Mesa (San Diego, United States) and Otay Centenario (Tijuana, Mexico). Additionally, it is 20 km away from the San Ysidro Commercial Port, which spans the border between San Ysidro, California, and Tijuana.

The site is part of the Manufacturing, Maquiladora, and Export Services Industry (IMMEX) services program for the Tijuana market. It offers services such as sorting, storage, cross-docking, inventory management, and a range of value-added services including labelling, packaging, re-packaging, and order fulfilment. Alternatively, it could operate fulfilment or e-fulfilment operations into the United States, leveraging the Section 321 Shipment Type for e-commerce shipments.

The new site is certified LEED Gold, including rooftop solar panels, 100% electric material-handling equipment, LED lighting, heat island reduction, indoor and outdoor water use reduction, and waste management system.

Patricia Perez Salazar, Managing Director for Maersk in Mexico, commented: “With a focus on IMMEX program services, inventory control, and seamless cross-border integration, we’re positioned to capitalize on the manufacturing landscape in Mexico and our commitment to delivering unparalleled service to our customers. By strategically leveraging our new warehouse in Tijuana, tailored to the complexities of cross-border trade, we’re better positioned to provide our customers in the region truly integrated logistics solutions”.

In recent years, the manufacturing industry in Tijuana has grown remarkably, driven by the increasing trend of nearshoring between Mexico and the United States. According to the International Trade Administration, Mexico is the United States’ third largest trading partner, and a significant portion of the trade is generated in the largest metropolitan area between San Diego and Tijuana.

This trend has attracted companies from across the globe seeking to capitalize on Tijuana’s strategic location and robust infrastructure. Situated near Ensenada’s Port and with access to various transportation modes including rail, truck, and air, Tijuana has emerged as a pivotal hub for international trade, particularly with its proximity to the United States. The city’s status as a strategic area is further underscored by the fact that a significant portion of its commercial activity originates from the United States, a trend that continues to escalate annually.

This strategic move allows Maersk to expand its service offerings and provide customers with an extended product portfolio, encompassing ocean services, warehousing and distribution, landside transportation, tailored to the complexities of cross-border trade.

Maersk’s footprint spans over 150,000 sq m across Mexico, with warehouses located in Mexico City, Tijuana, and Cuautitlan, and depots located near the ports in Lazaro Cardenas and Manzanillo. Looking ahead, Maersk has ambitious plans for expansion, with additional capabilities in Guadalajara and Monterrey, and expanding its landside capabilities, aimed at providing customers with solutions to facilitate Mexico-US cross-border trade.

Source: A.P. Moller-Maersk

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<![CDATA[ DB Schenker launches onboard courier service ]]> The new product addresses customers in need of urgent courier service solutions for small and high-value shipments.

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DB Schenker has introduced a new standardized product for a growing market segment: Now customers can book an exclusive onboard courier (OBC) service which provides a swift and reliable express air transport to and from any geography in the world. The new product addresses customers in need of urgent courier service solutions for small and high-value shipments. The launch of the new air freight product expands DB Schenker’s growing portfolio of white glove service solutions.

Thorsten Meincke, Global Board Member for Air & Ocean Freight, DB Schenker, said: “With our new OBC service, we are taking air freight to new heights. Whether urgent automotive parts need to be shipped from Germany to China to prevent a line stoppage, or a medical device from Canada is instantly needed in a hospital in South Africa – we are now able to take care of any unforeseeable and very short-term requirements of our customers. Through the new white glove service, we address new market opportunities for us as a global logistics solution provider.”

After an initial trial period, DB Schenker has set up an OBC service team that operates from three different continents to guarantee a 24/7 availability for OBC requests. Customers receive a quote within minutes at any time. A courier person is dispatched at short notice to personally accompany the cargo item(s) as a passenger on a commercial flight to minimize the risk of loss or damage and to ensure the shortest transit time.

Swift delivery, enhanced security, and global reach

The new express service of DB Schenker is characterized by a rapid response time, and includes insurance coverage and customs clearance, if required. While being available for all types of shipments except dangerous goods, demand is especially high from major corporate customers in the automotive, electronics, high-end fashion and healthcare industries. A maximum of transparency is provided via real-time tracking, inspired by the visibility known from e-commerce deliveries.

Stefan Pargfrieder, Vice President Global Air Freight Strategy & Development, DB Schenker, commented:“We understand that every shipment is unique. As a fully integrated logistics service provider, we want to be problem solvers for our customers. Sometimes the high value of an item is not related to its purchase price but rather to the costs adding up for every minute the item is not available. While we have already taken care of individual OBC customer requests in the past, we are now rolling out a standardized product offering across all continents.”

Source: DB Schenker

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<![CDATA[ SGL Group’s 2023 revenues down 39% compared to 2022 ]]> For SGL Group, the full year revenue was €2,022m compared to €3,332m in 2022; a decrease of 39%, primarily driven by lower freight rates and lower volumes.

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To ensure like-for-like comparability of financial performance following the acquisition of Scan Global Logistics by CVC Funds on 23 May 2023, the Group presented Pro Forma Interim Financial Results comprising financial statements for the period 1 January 2023 to 31 December 2023, including comparative period, as if no transaction had occurred.

For SGL Group, the full year revenue was €2,022m compared to €3,332m in 2022; a decrease of 39%, primarily driven by lower freight rates and lower volumes; both in line with expectations and current market conditions.

2023 gross profit amounted to €469m, on par with 2022. Gross margin amounted to 23.2%, compared to 14.1% in 2022.

While both revenue and gross profit in Q4 are slightly lower than the first three quarters of 2023, gross profit for the full year 2023 is on par with the same period last year. Despite top-line decline, in particular, non- cyclical industries like aid & relief, pharma, food & additives combined with several significant projects within certain complex industries and solid Ocean activities has contributed to the resilient Gross Profit of 2023. However, this was offset by the slowdown on the Trans-Pacific trade impacting both Asia and North America.

EBITDA Before special items amounted to €193m for the full year of 2023, a decline of 9% from €211m in 2022. EBITDA Before Special Items Margin reached 9.5% in 2023; an increase of 3.2%-point compared to 6.3% in 2022.

SGL Group – Reported Interim Financial Results

SGL Group’s reported financial results comprise financial statements for the period 1 January 2023 to 31 December 2023, but only including the operational activities of Scan Global Logistics as of closing of the acquisition of Scan Global Logistics 23 May 2023.

2023 Revenue amounted to €1,162m with gross profit of €269m and a gross margin of 23.1%. In 2023, the Group delivered solid results through its resilient business model and displayed gross profit resilience through-out 2023, driven by a growing customer base, higher share of wallet and the utilisation of the dynamics of the mix in the business with highly diversified end-markets.

Gross profit is further driven by solid Ocean activities combined with increased focus on complex projects. However, offset by the slowdown on the Trans- Pacific trade impacting both Asia and North America, which resulted in an EBITDA Before Special Items of EUR 102m; EBITDA before special items margin of 8.8%.

Source: Scan Global Logistics

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<![CDATA[ sennder partners with Mercitalia Logistics ]]> Sharing the vision of a sustainable and efficient transport network, sennder Technologies GmbH, Mercitalia Logistics, the logistics business division of Italian Railway FS Italiane Group, and Poste Italiane S.p.A. will join forces to pioneer intermodal transport solutions.

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Sharing the vision of a sustainable and efficient transport network, sennder Technologies GmbH, Mercitalia Logistics, the logistics business division of Italian Railway FS Italiane Group, and Poste Italiane S.p.A. will join forces to pioneer intermodal transport solutions. 

The aim of the intended partnership is to develop proprietary technology for sustainable road freight and cargo transport. The collaboration aims to seamlessly integrate rail and road transport to optimize efficiency, reduce carbon footprint, and enhance service delivery across Europe, transforming import/export transport with sustainability at its core. With this partnership, sennder will expand its green logistics offerings in Europe, reaffirming its commitment to green transportation solutions.

By combining sennder’s expertise in road freight logistics and technology with Mercitalia’s rail cargo experience, the collaboration will introduce sustainable intermodal logistics solutions for European shippers, optimizing costs, transport flows and routes, while reducing carbon emissions. sennder will handle the first and last mile of intermodal transports, using green transport solutions such as Hydrotreated Vegetable Oil (HVO) and Battery Electric Vehicles (BEVs), thus contributing to the decarbonization of transport. Through advanced technologies and seamless integration of transport modes, this joint initiative will significantly advance the establishment of an efficient and sustainable transport network in Europe, accelerating the transition to low-emission transport.

David Nothacker, founder and CEO at sennder, comments: “Intermodal logistics play a crucial role in keeping Europe moving, and the demand for efficient and sustainable transport is only increasing. Achieving sustainability in transportation is energized by solid industry partnerships and innovative technology, especially when it involves the dynamic integration of truck and rail solutions. 

Following our successful partnership with Poste Italiane, we are excited to cement our leading position in the market, and proud to partner with a market leader in rail cargo transport, Mercitalia. Together we will introduce a new intermodal green offering in Europe.”

Digitalization, innovation, and sustainability are central to Mercitalia’s industrial strategy. The partnership will combine Mercitalia’s internal expertise with sennder’s advanced technology to seize market opportunities effectively, and further underscores Mercitalia’s commitment to achieving carbon neutrality by 2040. 

Sabrina De Filippis, CEO of Mercitalia Logistics, adds: “The leading digital freight forwarder in Europe and the Logistics Business Unit of the FS Group are teaming up for an innovative project aimed at optimizing import/export transport flows with reduced environmental impact. This collaboration will enable more efficient and sustainable logistics through advanced technologies, load monitoring, and digital management, lowering CO2 emissions.” 

Each year, Mercitalia and sennder collectively facilitate the transportation of over 53m tonnes of goods. This includes 41m tonnes being transported via 100,000 trains operated by Mercitalia and 12m tonnes being carried through 1m truckloads on sennder’s extensive road network.

In 2023, sennder advanced its green transport efforts with two key joint ventures. The JUNA partnership with Scania, focused on e-truck commercialization with a pay-per-use model, is set to support the new Mercitalia partnership by moving trailers to and from train terminals. Additionally, the in 2023 expanded partnership with Poste Italiane, could deliver end-to-end logistics solutions with warehousing, complementing the Mercitalia collaboration.

sennder and Mercitalia have signed a letter of intent with the goal of forming a NewCo dedicated to developing a leading European operator for future intermodal logistics solutions. Completion of the NewCo is subject to a feasibility study, applicable competition and regulatory approvals, as well as successful consummation of the long-form legal agreements.

Source: sennder

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<![CDATA[ Bolloré Logistics Italy partners with Alha Group for biofuel trucks ]]> Bolloré Logistics Italy is increasingly committed to sustainable solutions. It has obtained the exclusive use of two biofuel trucks from its partner, the Alha Group, Italy’s leading company in the air cargo sector, providing ramp and warehouse handling services, as well as national and international road transport.

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Bolloré Logistics Italy is increasingly committed to sustainable solutions. It has obtained the exclusive use of two biofuel trucks from its partner, the Alha Group, Italy’s leading company in the air cargo sector, providing ramp and warehouse handling services, as well as national and international road transport.

The new trucks will reduce carbon dioxide* emissions while maintaining the same load capacity, mileage and load safety as their Euro 6 diesel counterparts.

For Bolloré Logistics, this project is in line with its commitments under its corporate social responsibility programme, Powering Sustainable Logistics, to reduce CO2 emissions from transport services by -30% by 2030 (based on 2019 emissions). The initiative comes on top of the company’s innovative aviation solutions with Sustainable Aviation Fuel (SAF).

“I am proud to work for a company that promotes such initiatives,” says Gianluca Dentici, Head of Operations Air, Italy. “Bolloré Logistics Italy has an important clientele that is increasingly aware of the environmental impact of its activities, and we are honored to be able to help them achieve their goals”.

* CO2 reduction by using Bio LNG: up to 72%.

Source: Bolloré Logistics

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<![CDATA[ World Sailing Chooses Kuehne+Nagel for Global Logistics ]]> WorldSailing_Kuehne&Nagel_PartnershipArtwork_1200x627 pp_jquery(function(){ colorbox_image(‘6627136’); });

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World Sailing, the worldwide governing body for sailing, has announced Kuehne+Nagel as its Global Logistics Partner in a three-year agreement. Kuehne+Nagel will serve as the preferred logistics partner for World Sailing’s Member National Authorities (MNAs) and all authorised events, handling the transportation of sailing equipment, boats, and other necessary resources through its global network and logistics expertise.

Furthermore, Kuehne+Nagel will contribute to World Sailing’s Sustainability Agenda 2030 goals by offering visibility and comprehensive carbon emissions reporting via the myKN platform. Additionally, World Sailing, its partners, MNAs, class associations, and sailors will have the option to choose alternative fuel solutions to reduce carbon emissions.

David Graham, CEO of World Sailing, commented, “We are thrilled to have Kuehne+Nagel as our Official Logistics Partner. This partnership presents a significant opportunity to combine top-tier logistics support for international sailing events with sustainable practices and efficiency. Both organisations share a common vision for creating a more sustainable supply chain, which will improve the logistical efficiency of our events, support sailors, and make a substantial contribution to World Sailing’s sustainability goals while also aiding in the sport’s development.”

Wolfgang Frässle, Vice President of Event Logistics at Kuehne+Nagel, added, “At Kuehne+Nagel, we are excited to support World Sailing as their Global Logistics Partner and collaborate on setting new standards for sustainable event logistics. This partnership marks another milestone in our series of global event partnerships, particularly within the sports industry. We value the trust our customers place in us, which aligns with our objective of expanding the Expo and Events Logistics portfolio as part of Kuehne+Nagel’s Roadmap 2026.”

 

Source:  Kuehne+Nagel

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<![CDATA[ Kuehne+Nagel Launches Fashion Hub in New Jersey ]]> pp_jquery(function(){ colorbox_image(‘6630294’); }); Today,…

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Kuehne+Nagel, a worldwide logistics company, revealed information about a new contract logistics fulfilment centre in Piscataway, New Jersey. This new establishment, covering an area of 100,000 sq ft, is positioned roughly two miles away from Kuehne+Nagel’s current site catering to a luxury retail brand.

The establishment is set up to support a new fashion client and offers about 55,000 sq ft of additional space. Its location near John F. Kennedy International Airport and Port Elizabeth, as well as one of the leading consumer markets for fashion in the United States might be advantageous. The facility utilises automation and robotics for picking and storing items that might help to improve efficiency in fulfilment operations. Additionally, it is equipped with EV (electric vehicle) charging stations and LED lighting.

Eduardo Razuck, Senior Vice President, Contract Logistics Americas for Kuehne+Nagel, commented, “We are pleased to inaugurate this new site, marking a significant achievement for Kuehne+Nagel’s contract logistics business in North America and supporting the company’s Roadmap 2026 goals to advance e-commerce business solutions.” He further added, “Our investment in a new distribution centre in Piscataway, NJ, caters to our luxury and fashion clients, allowing them to concentrate on their primary objectives – strengthening their brands in the USA market and supporting their consumers.”

The facility is set to commence operations in late-April 2024, creating approximately 50 new employment opportunities in the vicinity.

Source: Kuehne-Nagel

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