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Dec 15, 2020 at 7:30 PMThe Aircargo Club Germany was able to welcome Frank Sportolari, the President of UPS Germany, at its Christmas event. He spoke there about the sustainability goals of the courier service provider. In particular, the fuel sources are the focus of UPS.
(Frankfurt) The COVID-19 pandemic and the Christmas business have led to record shipment volumes in the courier, express, and parcel industry (KEP) in 2020. Increasingly large datasets, more extensive and shorter-term customer delivery requests, and the tense traffic situation, especially in large cities, along with the pressure for greater climate neutrality, pose significant challenges for KEP service providers like UPS. To further optimize deliveries, they are therefore relying on innovations such as alternative fuels, drones, and new delivery concepts. Frank Sportolari, President of UPS Germany, spoke at the recent event of the Aircargo Club Germany (ACD) about why innovations are so important for the future of logistics.
Growth Surge in Online Retail
The COVID crisis has given online retail in Germany a significant growth boost. Especially everyday goods such as food, pet supplies, medications, or drugstore products are ordered online much more frequently than before the pandemic. According to the Federal Association of Parcel and Express Logistics (BIEK), the KEP industry recorded a significant growth in shipment volume of 7.4 percent in the first half of 2020. In this year’s Christmas business, the association even expects a COVID-related increase of 15 to 20 percent in parcel shipments for private households compared to the previous year.
In light of the sharply rising goods flows, sustainability is one of the main issues that the logistics industry must address. “At UPS, we are constantly investing in innovations that optimize our deliveries. Because that is what logistics is all about: the constant endeavor to achieve more with less and to make the flow of goods more efficient. In this sense, sustainability is also built into our DNA,” said Frank Sportolari, President of UPS Germany, at the Christmas event of the Aircargo Club Germany. Therefore, UPS has set concrete sustainability goals and has particularly committed to the sustainability of its fuel sources.
Increase Renewable Energy to 40 Percent
The global transport company plans to increase the share of alternative renewable fuels for its fleet to 40 percent by 2025. Additionally, a quarter of UPS’s total global electricity needs is to be covered by renewable sources by 2025. In Germany, UPS already sources 100 percent of its electricity from renewable sources. In the area of city logistics, UPS has also successfully introduced new delivery concepts to relieve city centers. UPS has tested bicycle and pedestrian deliveries using micro-depots as consolidation points and is expanding such projects. The city logistics project is currently running in over 30 cities worldwide, including Munich, Frankfurt, Cologne, and Hamburg.
Prof. Dr. Christopher W. Stoller, President of the Aircargo Club Germany, also referred to the importance of sustainable logistics: “Even in these challenging times, it must not be forgotten that due to the increasing delivery flows, sustainable concepts are needed. However, alternative drives must be competitive in terms of acquisition and operation compared to conventional drives. To develop economically and ecologically sensible solutions and strategies, politics, science, and business must work together. UPS is a good example of how innovations can help make logistics more efficient and thus also more climate-neutral.”
Own Drone Company
Frank Sportolari also emphasized the importance of innovations. UPS already operates its own drone airline, UPS Flight Forward, in the USA for special delivery solutions. It was the first company to receive full approval from the US Federal Aviation Administration (FAA). Since then, they have been able to fly commercial drone deliveries outside the pilot’s line of sight. Frank Sportolari highlighted the significance of drones, especially in the healthcare sector: “In collaboration with CVS Health, we have launched a drone service that has been of great benefit during COVID. Our drones deliver prescription medications from a CVS pharmacy in Florida to the largest retirement community in the USA. It is a fast delivery method – and simultaneously supports social distancing.”
However, it may still take some time before such deliveries are permitted in Germany. As in almost all of the EU, there are stricter laws regarding drones here. Without special permission, drones in Germany are not allowed to cross certain infrastructures such as federal highways, private residential buildings and their gardens, as well as airport control zones. However, a push has now been made in the EU to standardize the use of drones in the member states.
Aircargo Club Germany
The Aircargo Club Germany (ACD) was founded in 1963 as an industry-related interest and discussion platform to promote air freight traffic. The approximately 250 members are senior corporate representatives from the air freight industry with national or international responsibilities. They represent a growth industry that connects people, countries, and industries and enables free global trade.
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