DB Schenker and Volvo Cars reduce emissions in ocean freight

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12/07/2023

PRESS RELEASE

Overall, 12.000 TEU with spare parts transported eco-friendly into the US • Marine biofuels gaining momentum in the industry • DB Schenker and Volvo Cars is a matching sustainable partnership

Essen, July 12, 2023 – DB Schenker and Volvo Cars have embarked on a partnership for more sustainable ocean freight, shipping 12,000 standard containers (TEU) with automotive spare parts on vessels using biofuel that will reduce CO₂ emissions by 84% per container. In total over a year, this saves roughly 9,000 tons of CO₂compared to ocean freight vessels powered by fossil fuel. The program started in June and connects, among others, Volvo Cars’ Gothenburg production plant with the ports of Savannah, Newark, and New York. This kicks off a new long-term business relationship between the leading logistics provider and one of the most well-known and respected car brands in the world. DB Schenker procures second generation biofuel of the type used cooking oil methyl ester (UCOME). Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker: “We are proud that a recognized brand such as Volvo Cars joins us at DB Schenker on our way to a future of cleaner logistics. Our promise is to support customers in reducing their Scope 3 emissions coming from transportation and distribution. We will only succeed in shaping sustainable supply chains, if shippers, forwarders, and carriers work closely together.” Javier Varela, Chief Operating Officer and Deputy CEO at Volvo Cars: “At Volvo Cars we are on a mission to decarbonise our supply chain. Strong partnerships with leading logistics providers are critical to creating possibilities, like utilising renewable fuels for ocean freight. We are continually exploring sustainability opportunities across all aspects of our supply chain and we want to spark other car makers into action as well, to increase demand for carbon efficient ocean transports.” The renewable fuel used for these transports is certified by an independent third-party and not produced in competition with food crops. Therefore, it has less impact on the environment in accordance with the EU Renewable Energy Directive (RED). When renewable fuel is not available on a specific shipment for Volvo Cars, it will be used for another customer’s transport elsewhere and allocated to Volvo Cars through a methodology called mass-balancing. This method is third-party audited regularly and ensures that the overall cut in fossil fuel is on par with the actual use in container vessels.