Hitachi ZeroCarbon and MUFG have joined forces to supercharge the global transition to electric vehicles by removing the technical and capital constraints to decarbonisation. In combining Hitachi’s technology and operational expertise with MUFG’s financial strength, fleets benefit from strategic EV guidance and support, and reliable access to low-cost capital that protects long-term asset value.

This partnership addresses the biggest barriers to electrification faced by fleets all around the world: capital availability and change management. Across the industry, fleet operators have less than a decade to decarbonise, but the cost of replacing diesel vehicles, installing new infrastructure or upskilling workers can delay or prevent businesses from reaping the benefits and revenue opportunities of the EV transition.

MUFG’s global financial strength and presence ensures that fleets can scale their electrification seamlessly across markets, while Hitachi’s platform helps operators to better understand, manage and optimise their assets, for example electric vehicles, batteries or charging infrastructure. Fleets maintain full operational control of their services while benefitting from the financial and technical expertise of both partners. Hitachi’s managed service maximises the residual value of assets, ensuring they can be reused or recycled at the end of the lease period, protecting investment returns for fleet operators.

Commenting on the partnership, Hiroki Miyashita, Managing Director of Business Co-creation Division at MUFG said: “We have a proud history of working closely with Hitachi, and our shared values and business philosophies have driven fundamental transformation across countless industries. We are committed to addressing the barriers in the way of societal progress, and combining our expertise with Hitachi will help the commercial fleet ecosystem decarbonise at speed, and realise the real-time benefits of electrification far more quickly.”

The model has already made its mark with the leading UK bus operator, First Bus. The operator is on a mission to decarbonise its 4500-bus fleet by 2035 and has already purchased more than 1000 EV batteries, and benefitted from managed services for 1500 buses to enable electrified operations.

First Group, the parent company of First Bus, has saved more than £20M in deferred capital, and is anticipating more than £40M in future savings. This NextGen project was recognised for Innovation of the Year at the IJGlobal Awards 2023, showing how technical and financial expertise underpins the successful decarbonisation of commercial fleets.

Ram Ramachander, Chief Executive Officer at Hitachi ZeroCarbon said: “Cost remains the greatest hurdle to fleet electrification. We’re removing that barrier by giving fleet managers the confidence that decarbonisation is not only achievable, but financially viable. With access to financing through partners like MUFG, operators can accelerate progress toward their net zero targets while unlocking new revenue streams. By helping customers optimise their assets, we’re enabling long-term investment returns and creating meaningful commercial value. It’s a win-win, advancing both sustainability and profitability, and making fleet electrification a practical reality.”

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Coca-Cola HBC, the strategic bottling partner of the Coca-Cola company on the island of Ireland, has extended its long-term partnership with Wincanton, the leading supply chain partner to UK businesses. 

The contract extension until the end of 2026 builds on the two brands’ strong partnership which began in 2016 and marks a decade of collaboration.

As part of this collaboration, Wincanton will continue to provide warehouse operations management at Coca-Cola HBC’s dedicated facility in Lisburn, Northern Ireland, which handles over 52 million cases of popular brands such as Coca-Cola, Fanta and Monster per year.

Wincanton is also responsible for delivering operational efficiencies, incorporating volumes driven by the Deposit Return Scheme in the Republic of Ireland whilst also bringing logistics expertise to the facility to support the company’s ongoing growth.

Joanna Sneddon, Coca-Cola HBC Ireland and Northern Ireland Supply Chain Director said:

“Delivering high-quality products and service to our customers is our priority. We are pleased to grow our partnership with Wincanton on our journey to develop world class logistics service over the coming years.”

James Hurrell, MD for Grocery & Consumer at Wincanton, added:

“With its vision to be the world’s leading 24/7 beverage partner, we’re delighted to be supporting Coca-Cola HBC and its unique portfolio on its journey to exponential growth. 

“We look forward to continuing our work together and celebrating a decade of growth, innovation, and automation together.” 

The extended partnership also reflects a shared commitment to sustainability and innovation. Both companies are actively investing in greener supply chain practices, with Wincanton introducing initiatives to reduce carbon emissions and Coca-Cola HBC advancing its World Without Waste goals. This continued alignment on responsible logistics and environmental stewardship ensures that the partnership not only delivers operational excellence but also supports broader sustainability objectives.

Alongside its extended partnership with Coca-Cola HBC, Wincanton is undergoing significant transformation as it strengthens its market position through strategic acquisitions and partnerships. In early 2024, the company was acquired by GXO Logistics in a £762 million deal, which is currently under review by the UK’s Competition and Markets Authority (CMA). While the regulatory process continues, Wincanton remains focused on innovation and operational excellence. In a move to advance its automation capabilities, Wincanton also acquired Invar Group Limited, a UK-based specialist in warehouse execution software and robotics integration. This acquisition brings Invar’s proprietary technology and expertise into Wincanton’s portfolio, enhancing its ability to deliver cutting-edge, efficient logistics solutions across its network.

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DHL eCommerce to Merge with Evri

Evri, one of the UK’s largest dedicated parcel delivery companies, and DHL eCommerce, the e-commerce logistics specialist of DHL Group, have today announced a strategic transaction that will see the merger of DHL eCommerce UK with Evri. The merged Evri business will deliver over 1 billion parcels and a further 1 billion business letters annually and is poised to bring significant benefits to consumers and businesses by offering greater choice and cost competitive solutions. As part of the transaction, DHL Group will acquire a significant minority stake in Evri.

Evri’s cost-effective and flexible courier offer will be complemented with the addition of DHL eCommerce’s premium van delivery network. Rebranded Evri Premium – a network of DHL eCommerce, this will remain a dedicated and secure, separate network that will offer fast, time-sensitive deliveries with enhanced shipping security protection for high-value and large items for B2B and B2C parcel services.
The new Group will include an expanded international capability for inbound and outbound parcels to complement Evri’s own international network by making use of DHL eCommerce’s extensive expertise in cross-border parcel shipping and out-of-home network of nearly 150, 000 global access points. This includes faster transit times across the world with access to DHL’s own eCommerce network in Europe, the U.S. and selected Asian markets such as India.

Notably, Evri is entering the UK business letter market for the first time, with DHL’s UK Mail retained in the new combined Group and offering a best-in-class mail service. This will also offer e-commerce businesses more options for sending lighter-weight items. In addition, customers will benefit from the Group’s new combined out-of-home shop and locker network parcel delivery and collection which will be the UK’s largest.

Martijn de Lange, CEO of Evri, said: “We are excited that DHL eCommerce UK will merge with Evri to bring together two highly complementary UK businesses – committed to innovation and offering customers and clients the best possible service. By combining Evri’s scale, innovation and DHL eCommerce’s best-in-class premium van network, we are creating the pre-eminent parcel delivery group in the UK. Over the last decade Evri has grown ten-fold in size and this transaction will further expand our access into the European and global e-commerce markets. Since Apollo-managed funds came on board as our owners, they have backed our intent to drive forward and grow to become the UK’s premier parcel delivery business.”

Pablo Ciano, CEO of DHL eCommerce, said: “DHL eCommerce and Evri both stand for top service quality, reliability, and sustainability, which makes this partnership a great fit for our customers. Together, we’ll be able to offer more efficient, far-reaching, and innovative solutions to keep up with the fast-paced e-commerce market. By joining forces in the UK, we’re creating a one-stop shop for all our customers’ parcel needs here and giving them better delivery options from around the world.”

The service portfolio of the newly formed Group will include:
• Cost-effective and flexible courier network for next-day and standard deliveries for small and large items for retailers, businesses and consumers.
• A separate, dedicated and secure premium network for high-value and larger parcels for B2B and B2C deliveries.
• A leading SME one stop shop solution which offers everything from mail, lightweight, larger, secure, B2B, international and fulfilment services.
• The UK’s largest out-of-home network of 15,000 access points.
• Extensive international capability to complement Evri’s own international network by making use of DHL eCommerce’s expertise in cross-border parcel shipping and global out-of-home network of nearly 150,000 access points.
• The operation of a best-in-class mail service on behalf of businesses in the UK.

On completion, the combined Group, will bring together a team of over 30,000 couriers and van drivers, 12,000 colleagues, with a fleet of 8,000 vehicles to deliver over 1 billion parcels and 1 billion letters annually.

Evri Chairman and Apollo Partner Alex van Hoek, said: “This is a tremendous milestone in Evri’s journey, and we are delighted to welcome a global leader like DHL as a strategic partner and shareholder. By embracing technology and innovation, Evri has grown from strength to strength in a dynamic e-commerce market. With DHL’s complementary expertise and strong network, the business is well positioned to further improve its reliable services and the customer experience.”

Following completion, Martijn de Lange will lead the combined business in the UK, with Stu Hill, currently CEO of DHL eCommerce UK, becoming MD of Evri’s Premium DHL network business. The DHL eCommerce UK executive team will also join the new group.

Evri will continue to be majority owned by Apollo-managed funds. Completion of the transaction and the outlined partnership are contingent upon closing conditions, including customary regulatory approvals. The businesses of DHL Express, DHL Supply Chain and DHL Global Forwarding in the UK are unaffected by this transaction and will continue to operate as they do at present.

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Evri adds Tiger trailers to fleet

Better stock accuracy and planning can be achieved with AI, in the Gulf and elsewhere, writes Trevor Stamp (pictured below), Head of Contract Logistics, GAC Dubai.

The Middle East has rapidly grown in prominence as a key distribution hub in response to global boom in online retail and e-commerce sparked by the pandemic.

Consumer habits were permanently changed by lockdown, prompting greater demand for warehousing, fulfilment and cargo processing capacity in a region that sits strategically at the crossroads of key trade routes linking Asia to Europe. That trend shows no signs of slowing. Just in the last six month, we have witnessed an increase in trade of almost 20% in the e-commerce sector, owing to an earlier than expected peak season for the holiday period as many sought earlier deliveries to avoid the risks associated with a potentially disruptive supply chain.

To help retailers meet higher consumer expectations, the Middle East’s logistics sector is investing in core infrastructure and processes to handle growing volumes of cargo and increasingly complex supply chains.

Trevor Stamp, GAC Dubai

Greater use is being made of AI-based technologies as the sector moves beyond a ‘pallet in, pallet out’ business model and towards a future that focuses on the cross-docking setups that are more suited to e-commerce. This approach becomes even more important when you consider the scale of modern logistics operations in the region.

AI-phobia

In Dubai, for example, GAC’s contract logistics operation has grown to be able to process enough throughput to fill its 4,300 m³ base, which includes more than 250,000 pallet locations and 300,000 pick faces. Handling such a volume of cargo on a daily basis demands a digital structure that incorporates modern agile processes, including automation, Artificial Intelligence (AI), Blockchain and the Internet of Things.

GAC’s recent adoption of the Manhattan SCALE platform for some of its contract logistics operations is a clear example of that next step. By embracing AI into day-to-day operations, our teams have more access to greater planning capabilities, labour management tools and forecasting elements – all critical ingredients for success in a booming e-commerce market.

Already, the advantages of using AI to facilitate better stock accuracy and planning capabilities are clear – throughput at our Dubai hub by more than 15%. To thrive in this new era, the Middle East logistics sector must embrace technology and new digital ways of working. But we must also be wary of the potential risks and obstacles.

Some apprehension – or even suspicion – is inevitable when adopting new software, particularly when AI is involved. Workforces that have been working a certain way for an extended period time will likely push back on major changes to their day-to-day working processes. Such ‘AI phobia’ is linked to misunderstanding the benefits it offers for efficiency, data security and reliability.

This is something we have experienced firsthand at GAC. Some of our tenured professionals have been working in a certain way at our warehouse for more than 25 years, so a major shakeup was bound to be met with some uncertainty. We helped ease our people through that emotional curve by switching on functions slowly, reallocating resources and personnel accordingly, and continuously educating our teams on how the system works to their advantage. Adopting AI-based software at GAC Dubai has been the biggest shake-up in contract logistics operation in more than two decades, but we have been able slowly upskill our team, bringing benefits to both our workforce and our customers.

Despite some initial skepticism and AI-phobia, the transition has been welcomed and the long-term competitive benefits have already begun bearing fruit. If the Middle East is to remain at the epicentre of modern logistics, change is a must to ensure the region’s long-term competitiveness in a constantly evolving market.

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AI is changing the way we use Software

A compact and agile AirRob automated storage system by Libiao Robotics has been installed in the Shanghai warehouse of a specialist lean supply chain management service company.

Founded in 2001, Shanghai Shine-Link International Logistics (SLC) services the specific storage and distribution needs of precision-driven, high-end industrials, from medical devices to advanced electronics, and chemical reagents to mechanical parts. It offers a wide range of services, including supply chain management, international transportation, and various value-added activities.

With a client list comprising international brands such as Coty, Siemens, Pioneer, and Leica, SLC’s services are highly sought-after by companies whose exacting supply chain and fulfilment standards are considered above the normal needs of the average industrial customer. It has recently added a major medical devices, disinfection and hygiene products manufacturer to its list of prestigious customers.

“Smart Logistics” Model

SLC’s stated focus is on providing lean supply chain management services to international multinational companies based on accurate, timely and personalised IoT and digital services. It has developed a “smart logistics” business model with IT at its core, the goals of which include visual management of logistics processes, intelligent traceability management of products, intelligent warehousing and distribution management, and smart supply chain coordination management.

A significant element of this smart philosophy lies within the four walls of its warehouse facilities, where it embraces cutting-edge systems and practices to attract and retain customers requiring a 3PL that can go above and beyond the average SLAs for the sector. Therefore, to best service the medical device company’s particular storage and global distribution requirements, SLC converted a small area of its Shanghai distribution warehouse to a high-density, highly efficient Libiao AirRob storage system.

The system Libiao designed for SLC comprises an arrangement of standard warehouse racking serviced by just three hard-working AirRob robots which travel vertically and horizontally on the racking to store and retrieve goods quickly and efficiently. These are serviced by a small fleet of nine ‘floorbots’, which transport the goods to one of seven workstations, where the items are then readied for dispatch.

Reduced Energy Consumption

The multi-award-winning AirRob system offers significant advantages over traditional automated warehouse systems. Its modular design enables rapid installation on existing standard racking within one-to-four weeks without the need to alter existing infrastructure or flooring, making it ideal for retrofits or brownfield developments. AirRob operates in aisle widths as narrow as 0.85 meters, enhancing storage density by up to 30%. Each bot consumes just 150 watts per hour – lower than a microwave – reducing energy usage by one-third compared to similar systems. Its scalability allows for quick and easy expansion to meet growing demands. Additionally, AirRob’s efficient operation can triple throughput efficiency, offering a typical return on investment (ROI) within 12–24 months.

Ding Ling, General Manager of IT BU at SLC, commented on the project: “After going out to the market to compare the different systems and solutions that were available, we decided to select AirRob primarily for three main reasons. Firstly, the fact that Libiao Robotics is the inventor of this type of solution; secondly, the solution represents a good ROI for us; and thirdly, we were attracted by the potential energy savings we can make with AirRob.”

“We’re particularly proud to have been chosen as a supplier to such a prestigious and demanding customer,” said Ronan Shen, Libiao Robotics’ VP of Global Sales. “Not only have we provided a system that meets the precise needs of SLC, but we have managed to successfully achieve this in a particularly space-constrained area of a busy warehouse, without disruption to its ongoing operations. Furthermore, the project represents the first AirRob installation in the medical supplies sector, an industry that lends itself well to the characteristics of AirRob, such as high efficiency and accuracy, a high density of storage, low energy usage, and the careful handling of delicate or valuable items.”

This smaller-than-usual AirRob installation at SLC’s Shanghai facility perfectly illustrates that companies can automate some repetitive tasks or part of their operations at a relatively low cost point, yet still make significant gains in efficiency and accuracy.

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Airrob – Future Warehousing System

Honeywell is teaming up with Teradyne Robotics to deliver automation solutions for logistics, warehousing and fast-moving consumer goods companies throughout the Americas and Europe. The collaboration brings Teradyne Robotics’ autonomous mobile robot (AMR) and collaborative robot (cobot) technologies together with Honeywell’s advanced software, extensive implementation expertise and cybersecurity capabilities.

“This relationship with Honeywell will provide businesses with end-to-end solutions, from automation system design through to implementation and maintenance,” said Ujjwal Kumar, Group President of Teradyne Robotics. “The combined strengths of Teradyne Robotics and Honeywell will help companies tackle the challenges they are experiencing today with labor-intensive, inefficient material-handling tasks.”

Teradyne Robotics —which encompasses Mobile Industrial Robots (MiR) and Universal Robots—has shipped more than 110,000 advanced robots to companies across the globe. Its portfolio of robotic solutions includes infrastructure-free AMRs that take on previously manual, low-value tasks like transporting material throughout a distribution facility or lifting and moving heavy pallets, freeing employees up for more strategic work. Teradyne Robotics’ advanced robotics platforms are also used for AI-enabled applications, guiding motion, optimizing paths and performing complex tasks with precision. Its MiR1200 Pallet Jack uses an AI-based perception system to detect and move pallets within large warehouse facilities, reducing pick-and-place times and significantly increasing throughput.

With more than three decades of experience, Honeywell brings deep warehouse automation expertise, enterprise-level software capabilities and a comprehensive system of integrated services to the partnership. Honeywell’s Momentum Warehouse Execution Software (WES) empowers businesses to adapt to dynamic demand shifts, orchestrating interoperability among diverse robotic point systems while optimizing material flow and processes.

This new collaboration combines Teradyne Robotics’ advanced solutions with Honeywell’s Momentum WES, resulting in comprehensive, customer-focused material handling and process optimization as well as seamless, intelligent automation that tackles material transport challenges while scaling automation across operations. Businesses stand to benefit from reduced operational costs, streamlined workforce operations and enhanced productivity—all while prioritizing employee safety and satisfaction.

“Honeywell’s relationship with Teradyne Robotics empowers operations in distribution centers and warehouses through end-to-end automation solutions that enhance operational efficiency, optimize resources and improve worker safety,” said Chad Briggs, president of Honeywell Intelligrated. “Together, we’re making automation adoption accessible and impactful for organizations, enabling them to focus on strategic goals and drive tangible results.”

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Honeywell and Hai Robotics Collaborate

Logistics companies face immense pressure to optimise their operations, enhance security, reduce losses, and become more cost-efficient. Advanced AI-powered video surveillance solutions provide essential support, including robust stock monitoring, access and perimeter control and proactive security – all while improving operational insights and automating tasks such as barcode scanning, according to Hanwha Vision Europe.

Investing in tailored and innovative surveillance solutions has a tangible and lasting impact across the entire supply chain, not just by preventing losses through theft and misplacement but also in tracking shipments across complex supply chains, improving the customer and delivery experience, and helping combat talent shortages through automation.

The rising cost and challenge of theft in logistics

In the last quarter of 2024, cargo crimes worth just over 100 million euros were reported to the Transport Asset Protection Association’s (TAPA) EMEA Intelligence System. This included the two months of the year (December and November) with the highest reported theft value in 2024.

Insider crime is a growing concern for logistics leaders, with warehouse, distribution and store employees accounting for 40% of retail theft losses in Europe. Beyond the obvious financial repercussions of this, losses across the supply chain can disrupt inventory accuracy, impacting customer satisfaction and causing unforeseen stock shortages.

How AI can support logistics loss prevention

Partnering with a strategic surveillance partner with tailored logistics solutions and long-standing experience in the sector can make a significant difference to loss prevention. Multi-layered security frameworks can be implemented to cover warehouses, distribution centres, car parks, storage, loading docks and more.

AI-enabled cameras integrated with a video management system (VMS) and intelligent IP audio analytics allow for real-time facility overview, whether on-site or remotely managed, giving operators greater situational awareness of potential events and objects of interest that may require further investigation. For instance, an unexpected vehicle entering a loading bay during busy periods can trigger an alert to a control room team, who can then track the vehicle and send ground teams to its exact location.

With AI continuously monitoring for potential security threats such as loitering, unauthorised access, and unusual employee or goods movements, operators are free to work on other activities, reassured that alerts will prompt them to investigate an event further. Team efficiency is improved with the VMS scanning for objects or events that require human input and automating tasks such as opening car park barriers for white-listed vehicles. Displays can be on fewer screens, with critical cameras and event displays on a single screen instead of traditional multi-screen control rooms. This improves energy efficiency and sustainability.

Increased operational insights

Now, AI-powered video surveillance goes beyond merely improving security. It can enhance operational efficiency by delivering insights into daily workflows that allow leaders to fine-tune processes such as staffing and delivery schedules.

AI-enhanced video systems can track goods movement, monitor inventory levels, and pinpoint inefficiencies on the warehouse floor in real time. AI-powered cameras can evaluate the flow of goods throughout a facility, automatically identifying bottlenecks, underutilised spaces, or slow-moving processes that may lead to delays. Over the longer term, patterns can be tracked to identify inefficiencies and areas of concern.

Historically, decision-making has relied on fragmented or outdated information captured on different systems, with issues resolved only as they occur and are discovered. AI-powered video surveillance spots potential issues before they escalate, such as an out-of-place package or a delay in an outbound shipment. Furthermore, AI-powered barcode scanner cameras can track packages through channels for video and barcode scanning in one device, with insights delivered in a single place for operators to take action. Such dual-channel cameras are a powerful way to streamline package tracking and retrieval, ultimately ensuring the package makes it to its final destination. Additionally, video playback can help operators understand what has occurred if a package is damaged in transit or lost to ensure claims are thoroughly investigated and resolved.

Other AI-powered cameras can closely monitor activities in loading bays, tracking if the right vehicles are parked where they should be, if they are receiving the right packages and, equally important, how long they are taking to achieve full load times.

Having this information can help company leaders identify the key reasons for any slowdowns and avoid costly delays. Besides minimising the chance of packages ending up in the wrong vehicle, it can also reduce safety-related concerns when parked commercial vehicles are not initially in their designated spots, so drivers are required to move them.

Simplifying compliance and reducing liability

AI surveillance can also assist logistics companies in adhering to strict safety, labour, and environmental regulations, for example, by detecting forklifts in an area and ensuring they are in a safe proximity to other vehicles and people. With AI-powered cameras monitoring operations and a VMS verifying adherence to required standards, leaders can rest assured that if they do need to provide evidence in a dispute or accident, detailed footage and data are captured by their surveillance system. This can be particularly valuable in the case of damage to goods, accidents involving personnel or claims of improper handling.

Beyond compliance monitoring, AI-powered video surveillance simplifies reporting by generating detailed logs and compliance records, saving time and costs associated with regulatory documentation.

Preparing your logistics for the AI-powered future

Embracing AI-powered video surveillance will help logistics leaders take their operations, efficiency, safety, and loss prevention to the next level – setting the stage for sustained success in an evolving industry. To realise these benefits, it’s vital to work with the right video surveillance partner, along with deploying the right AI-enabled solutions, to maintain a competitive edge and manage the challenges of both today and tomorrow.

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MD of Eagle Eye Networks talks cloud-based security

Automated picking and handling operations often require the usage of more than one technology in the robotic area. They should be both scalable and flexible. David Priestman got an update from a key player.

“We’re experts in the hardest area, which is individual item picking,” Ocado Intelligent Automation (OIA) CEO Mark Richardson told me when we caught up with each other at LogiMAT. Having seen the hive OSRS storage and retrieval system close-up myself it is impossible not to be highly impressed by it. With OIA firmly planting its flag in the global materials handling industry, exhibiting at both LogiMAT and ProMat, having both the right mix of products combined with the best route to market is the name of the game now.

Robotic Area

As well as selling directly to non-grocery customers internationally OIA is going to leverage resellers to grow market share. The first deal announced, non-exclusively for the German-speaking market, was with Gebhardt Intralogistics Group. Gebhardt has a wide range of excellent handling and conveying systems, but not an ASRS. “We don’t have presence in Germany, so we’re looking forward to having access to a market that probably wouldn’t (readily) talk to us,” Richardson said. “It gives reassurance to customers that we have a presence. Gebhardt has a stellar reputation in the sector and across Europe, and we trust them to bring deep value and expertise to customers in the region. They have good mid-size capability.”

OIA is in discussion with a small number of other resellers internationally. “It was always our plan to use resellers,” Richardson added. “We’re picky about who.” He anticipates doing projects lead by and sold by Gebhardt (and other resellers) but also vice-versa, with OIA winning the business and taking the lead, utilising local installation, service and maintenance. Expect more announcements.

Call the Porter

The company is extending the ‘Chuck’ range of AMRs to automate further processes. ‘Porter’ is a new AMR pallet-carrier that drives pallets point-to-point, all using the Chuck tech-stack. Porter picks, moves and places pallets directly from the floor with precision, even when they are aligned back-to-back. It recognizes its surroundings to safely handle and transport heavy loads autonomously and can be configured to handle cages, increasing flexibility and expanding fulfilment capabilities.

“Customers might buy just the Porter or Porter plus Chuck,” Richardson informed me. “In existing operations it can be used as an inexpensive pallet mover, collecting open or closed pallets and it can stack pallets immediately adjacent to each other, so there are no gaps. Porter takes us into the case handling and de-palletising robotics area, extending our product range. It will be used for inbound, from the dock door to the OSRS induct stations and loading into the grid – bringing the pallet to the decanter.”

Porter’s advanced vision system enables it to navigate safely and autonomously without requiring infrastructure changes or manual intervention. Moving at speeds of up to 4.5 miles per hour, the AMR dynamically adjusts its speed when detecting people or equipment in the area, ensuring workplace safety. Porter intelligently parallel parks itself in aisles to reduce congestion, keeping operations seamless for both robots and human associates.

Finally, I asked Richardson for an update on OSRS projects being delivered. Canadian pharmaceutical distributor McKesson’s installation will be finished this summer, ready for final testing and go-live. “We have a full pipeline,” Richardson stated, “as well as bidding for many projects.” Watch this space and listen to our Logistics Business Conversations Podcast with OIA on Spotify and other platforms.

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High Throughput; Tried & Tested

While the main focus is on tariffs, trade lanes – as arteries of the world economy – have turned global logistics operators into key players, writes guest columnist Gino Baldissare.

More than five decades ago, there were some commodities that played a key role in the global economy: grains, petroleum and metals. They were like certain electrolytes that are critical for the human body. Today, while they remain key to our economic development, others have joined the ranking, especially those linked to the technological industry: rare earths.

But if we aim to complete the Top 5 of key commodities, we must have a look at a more intangible sector, like the cardiovascular system of global value chains: international logistics. Whether we look at the last four or five years, or the last four or five months, we can see how important global logistics operators have become. This is the reason why the magnifying glass of international geopolitics is on them.

In order to dive into some examples, we can start with some triggering names like Cosco Shipping, Panamá, China, United States, and Germany, to say a few.

Targeting China`s Logistic Arms

The China Ocean Shipping Company (COSCO) is the third-largest shipping company in the world. It is considered a strategic agent of the Chinese Government when it comes to worldwide transport and logistics; the same as Hutchinson Ports, the port business unit of CK Hutchinson Holdings Ltd.

Last January, the United States added COSCO to a list of companies that allegedly support China’s military foreign policy, explicitly qualifying them as ‘Chinese military companies’, because of having provided commercial services or goods to the People’s Liberation Army or related organizations. It must be remarked that it is a blacklist for the Department of Defense, mostly targeting companies with potential impact on national security.

Shortly after the blacklisting became public, COSCO published a statement: “COSCO SHIPPING and its subsidiaries have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations. We remain committed to facilitating global trade and providing high-quality commercial shipping and logistics services to clients worldwide, including agricultural producers, manufacturers, energy firms, retailers, and exporters in the United States”.

In the same month, the US escalated its actions focused on China’s increasing role in the international maritime market. The Office of the Trade Representative (USTR) published the Report on China`s Targeting of the Maritime, Logistics and Shipbuilding Sectors for Dominance, which informs that “China increased its share of global shipbuilding tonnage from 5% in 1999 to over 50% in 2023 because of massive state subsidies and preferential treatment for state-owned enterprises that are squeezing out private-sector international competitors. The agency said that U.S. shipyards were building 70 ships in 1975, but just five annually today”.

However, it is not only an action over China’s growing domination of the global shipbuilding. The fees are intended to curb China’s growing commercial and military power on the maritime market and promote domestically built vessels inside the United States. This USTR proposal of charging up to $1.5 million for Chinese-built vessels entering US ports, initiated during Biden administration, did not change once Trump debuted his second presidential period. During April 2025, it has been implemented through more specific actions and periods of time, aiming to a phased in approach to avoid a sudden shock.

The instrumentation considers a grace period of 180 days, after which it will include:
• Fees on China-based vessel owners and operators based on net tonnage per US voyage.
• Fees on operators of Chinese-built ships based on net tonnage or containers discharged.
• To incentivise US-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity.

Why COSCO?

While it operates as a commercial entity, it is subject to government oversight through monitoring by governmental bodies, that regulate not only corporate governance but also ensure the company adheres to national security and economic policies. The State-owned Assets Supervision and Administration Commission (SASAC) is the Chinese body that controls state assets and ensures they are used in alignment with government priorities. SASAC monitors the performance of state-owned enterprises like COSCO, making sure they contribute to China’s broader economic, strategic, and foreign policy goals.

Therefore, while not being a direct ‘executing arm’ of China’s foreign policy, its operations within the logistic field align closely with China’s strategic goals, especially through initiatives like the ‘Belt and Road’ and its global shipping and port investments. The company is expected to support China’s economic and geopolitical goals.

In Europe

During the last 15 years, COSCO’s investments in European ports have been growing, not only in terms of participation percentages in port terminals management, but also from a geographical perspective. Targeting ports both on the North Sea and in the Mediterranean plays a significant role in terms of strategic trade lanes.

The most recent example is Hamburg Port. In 2022, the proposed investment by COSCO Shipping Ports Limited (CSPL) in the Port of Hamburg’s Container Terminal Tollerort (CTT) became a focal point of political debate within Germany. Initially, COSCO aimed to acquire a 35% stake in CTT, a terminal operated by Hamburger Hafen und Logistik AG (HHLA). However, the German government approved a reduced investment of 25%, ensuring that COSCO would not gain management rights or strategic influence over the terminal.

This decision was not without controversy. The German Foreign Ministry expressed concerns that the investment could disproportionately enhance China’s strategic influence over German and European transport infrastructure, potentially increasing Germany’s dependence on China. The ministry highlighted risks of allowing China to politically instrumentalize critical infrastructure in times of crisis.

Chancellor Olaf Scholz advocated for the investment, emphasizing its economic benefits and downplaying security risks. He argued that rejecting the deal could harm Hamburg’s competitiveness as a major European port. Conversely, other government factions opposed the investment, citing security and sovereignty concerns. HHLA clarified that the investment would not grant COSCO access to the Port of Hamburg or HHLA, nor would it provide strategic know-how. The port infrastructure would remain publicly owned, and HHLA would retain sole control over all major decisions. The terminal would remain open to all customers, with COSCO not receiving exclusive rights.

The Panama Canal

In December 2024, President-elect Donald Trump criticized Panama’s management of the Panama Canal, complaining about the transit fees, and urging Panama to reduce them to avoid any attempt from US to reclaim control. These declarations were not isolated from broader concerns about China’s influence in the region. The US administration expressed apprehensions about potential Chinese control over the canal, suggesting that China could close it during conflicts. Panama consistently denied such claims, reaffirming its independent control over the canal and rejecting any undue foreign influence.

In response, Panamanian President José Raúl Mulino firmly asserted Panama’s sovereignty over the canal. He remarked that every square meter of the Panama Canal and its adjacent zones belongs to Panama and will continue to do so, emphasizing that the nation’s sovereignty is non-negotiable. Mulino also refuted claims of Chinese military presence or control over the canal, stating that “no control, direct or indirect, neither from China, nor from the European Community, nor from the United States or any other power.”

However, these tensions seem to have cooled over the months, reaching a “mutual commitment to address shared security challenges” during April 2025. The Panama Canal Authority (ACP) said this declaration “reaffirms respect for, and the recognition of, Panamanian sovereignty over the interoceanic waterway, as well as compliance with the Neutrality Treaty and the legal framework governing its operation”.

The declaration is also intended to help to develop a compensation mechanism for services provided to warships and auxiliary vessels, seeking a cost-neutral basis, and considering the existing co-operation with the US Department of Defense, in areas including engineering, security, and cybersecurity.

Era of Shipping Geopolitics

These developments highlight the complex interplay of geopolitical interests and national sovereignty over key transport infrastructure and global logistic players around the world. As long as they remain as pivotal assets, attracting the strategic interests of global powers, these tensions are likely to continue as a reflection of the geopolitical landscape surrounding the arteries of the world economy. Today, more than ever, it is clear that it is not only a matter of having the electrolytes. It is key to manage the means to transport them to the destinations of interest.

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