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Carbon neutrality achieved by XPO Logistics UK and Ireland at their Crick headquarters

Carbon neutrality achieved by XPO Logistics UK and Ireland at their Crick headquarters

ALSO: AI and quantum computing in supply chain

The Irbis Index
October 17, 2023

Welcome back to The Irbis Index - your source for the latest in logistics and supply chain Private Equity, M&A, tech, and beyond.

In today’s edition:

a snapshot of The Irbis Index for September
this week’s round-up of expansions, investment, and acquisitions
more funding and achievements in the pursuit of the net-zero agenda
first commercial autonomous trucking lane, and also 7 roadblocks to the widespread adoption of autonomous trucking
AI and quantum computing in the supply chain

Irbis Index September 2023

Average EV/EBITDA multiples

Cold Storage and Logistics 17.6x

Industrial Manufacturers 9.55x

Food Producers 11.7x

Food Retailers 5.85x

Food Production Equipment 9.30x

Top Positive Correlations

S&P500 and Cold Storage & Logistics 0.94

Food Producers and Food Retailers 0.94

Meat, Fish & Dairy and Commodities (Grains) 0.89

S&P500 and Commodities (Grains) 0.85

Cold Storage & Logistics and Commodities (Grains) 0.83

Top Negative Correlations

Food Producers and Commodities (Energy) -0.72

Industrial REITs and Commodities (Grains) -0.70

Industrial REITs and Cold Storage & Logistics -0.69

Food Retailers and Commodities (Energy) -0.63

Commodities (Grains) and Commodities (Metal) -0.61

To view the full Index for September 2023 click here.

News

FedEx Express Europe: We are thrilled to announce our expansion in Dublin FedEx Express Europe is expanding its operations in Dublin, Ireland by building a new logistics facility in the Horizon Business Park near Dublin Airport. The facility will serve as FedEx's headquarters and integrate essential operations such as pickup and delivery, aircraft operations, and customs clearance. The spacious warehouse will cover an area of 14,561 square meters and include loading bays for both trucks and vans. The facility will prioritize sustainability with features like rooftop solar panels, insulated panels, and double-glazed windows. Construction is set to begin in January 2024, with the facility expected to be operational by early 2025. (link)

CMA CGM invests $600m to boost its 'under-utilised' NY/NJ box terminals CMA CGM, a global shipping company, is investing $600 million to enhance its recently acquired New York and New Jersey terminal operation. The investment aims to increase capacity by 80% and is being carried out in close partnership with the states of New Jersey and New York. The move is part of CMA CGM's strategy to develop and modernize infrastructure globally. With the acquisition of the Bayonne and New York terminals, CMA CGM will be able to provide better service offerings to its customers. The investment is expected to create 1,000 union jobs and improve stack density at the under-utilized terminals. (link)

J&T Global Express valued at $13bln in Hong Kong IPO Courier startup J&T Global Express is set to launch an initial public offering (IPO) in Hong Kong, valuing the company at around $13 billion. This valuation is lower than the $20 billion achieved in a previous funding round but in line with its most recent round. J&T plans to raise $500 million in the IPO, half of its initial target, due to "pessimistic" market sentiment. The company, which started in Indonesia and expanded across Southeast Asia and China, is one of the largest e-commerce delivery services in the region. J&T's IPO is expected to be the second-largest share sale in Hong Kong in 2023. (link)

Blue Yonder to Acquire First- and Last-Mile Logistics Company Doddle Blue Yonder, a supply chain management company acquired by Panasonic in 2021, has signed an acquisition agreement with Doddle, a London-based first and last-mile logistics company. This move allows Blue Yonder to offer an end-to-end supply chain management and logistics suite to over 3,000 customers, including brands, manufacturers, and logistics companies. Doddle provides omnichannel returns and self-service return kiosks to clients such as Amazon, FedEx, and Australia Post. The acquisition will also enable Blue Yonder's customers to join a network of logistics partners, monetizing their own logistics operations. This strategic partnership aims to enhance customer experiences, optimize returns, and reduce waste associated with return processes. (link)

XPO Logistics UK and Ireland HQ, achieves carbon neutrality XPO Logistics, a leading provider of logistics solutions in Europe, has achieved carbon-neutral status at its Crick facility in Northamptonshire, UK. The 350,000 sq ft site serves as the company's headquarters and national distribution hub for the UK and Ireland. XPO Logistics reached its goal of carbon neutrality 12 months ahead of schedule by reducing site emissions and offsetting the remaining CO2e. Initiatives include implementing renewable energy sources, such as wind, solar, and hydro, replacing all lighting with LEDs, reducing water consumption, achieving zero waste to landfill, and increasing recycling. XPO Logistics plans to expand its renewable energy resources to accelerate its journey to overall carbon neutrality. (link)

Maersk and Kodiak Robotics Launch the First Commercial Autonomous Trucking Lane Between Houston and Oklahoma City Maersk and Kodiak Robotics have teamed up to launch the first commercial autonomous trucking lane between Houston and Oklahoma City. This collaboration marks a significant step forward in integrating autonomous technology into supply chain networks, aiming to improve performance, efficiency, and safety. The companies are operating four round trips per week, hauling consumer goods using autonomous trucks equipped with advanced sensors for enhanced safety. As the trucking industry faces a shortage of drivers, autonomous trucking solutions like this have the potential to address long-term challenges and contribute to the digitization of the supply chain. Maersk and Kodiak plan to explore further collaboration opportunities in their North American logistics network. (link)

£89 million of funding to develop cutting-edge new electric vehicle technology The UK government has awarded £89 million in funding to 20 cutting-edge net zero tech projects. The funding package includes projects focused on hydrogen-powered offroad vehicles, lithium scale-up plants, and revolutionary EV battery systems. This investment aims to support the development of an end-to-end supply chain for zero-emission vehicles in the UK. The projects are expected to create or safeguard over 4,700 jobs and save nearly 65 million tonnes of CO2 emissions over the next decade. The funding is a collaboration between the government and the automotive industry, with £45.2 million coming from the government and £42.7 million from the industry. (link)

7 Roadblocks to the Widespread Adoption of Autonomous Trucking While autonomous technology has primarily focused on passenger cars, leveraging the same core technologies is crucial for the success of autonomous trucking. The industry needs to overcome challenges such as adapting self-driving software for trucks, implementing redundant safety platforms, accommodating various use cases, conducting extensive testing on highways, dealing with logistical complications, improving working conditions for drivers, and gaining public trust. The article emphasizes that autonomous trucking has the potential to revolutionize the industry, but navigating these roadblocks is essential for its commercial implementation. (link)

Tech

Altana using AI to map and analyze global supply chain with launch of next-gen Atlas New York-based AI startup Altana unveiled its latest iteration of the Atlas, a next-generation supply chain mapping tool. The Atlas utilizes artificial intelligence (AI) to analyze and map the global supply chain, offering businesses, governments, and logistics firms real-time visibility. It uses public and private data to create a unified product experience, allowing companies to have a common operating picture with their counterparties across the supply chain. The Atlas helps organizations comply with trade laws, mitigate risks, and track supply chain-related issues. It also incorporates a language model-powered assistant that responds to questions in natural language, providing quick and accurate answers. The phased rollout of the Altana Atlas is set to continue into Q1 2024. (link)

Unisys debuts quantum-powered solution that tackles complex logistics optimisation challenges Unisys has introduced Unisys Logistics Optimization™, a quantum-powered solution designed to address complex logistics optimization challenges quickly. The solution leverages quantum computing, advanced analytics, and artificial intelligence (AI) to deliver industry-specific analyses in seconds. Traditional computational tools would take years to generate similar results. Unisys Logistics Optimization™ uses pre-trained models to provide logistics companies with optimal plans for packing, storing, and routing shipments across multiple vehicles, improving efficiency and cost-effectiveness. Malaysia Aviation Group's cargo arm, MAB Kargo Sdn Bhd, is piloting the solution to optimize cargo capacity and profitability. Unlike other solutions, Unisys Logistics Optimization™ does not require additional data training, preserving clients' existing IT infrastructure and operations. (link)