Business Wire

In the Race to Combat Climate Change, C.H. Robinson Sees 654% Increase in Renewables Business While the Booming Clean Energy Sector Faces Five Key Logistics Challenges

Share

At a time when world leaders are setting aggressive goals to fight climate change, global logistics company C.H. Robinson is realizing triple-digit growth in its renewable-energy logistics business and helping the renewables industry cope with five key challenges. Feeding the demand for wind and solar power depends not only on overcoming today’s global supply-chain disruptions, but also reducing the risks, damages, complexities and costs inherent to projects that stretch into some of the most remote places on Earth.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210624005350/en/

To view this piece of content from mms.businesswire.com, please give your consent at the top of this page.

C.H. Robinson helps renewable-energy companies manage the supply chain and logistics for complex projects in some of the most remote places on Earth. (Photo: Business Wire)

C.H. Robinson, which manages renewable-energy transportation and logistics from manufacturing to installation to recycling, has seen its renewables business soar 654% globally in just the past three years. This work will create 14,000 megawatts of energy – enough solar energy to charge 1.73 million electric cars and enough wind energy to power a city the size of London for four months.

Growth in renewables is being fueled by the 194 nations of the Paris climate accord pledging to reduce greenhouse gases, tech advances lowering the cost of renewables compared to fossil fuels, and utilities and the business community investing more in clean energy sources. Tax incentives in the United States have also attracted new investors. The recent extension of those tax credits and the Biden administration proposing $2 trillion in climate-related spending are likely to propel the U.S. market for the next few years. Globally, investment in the sector is expected to grow sevenfold, reaching $2.15 trillion in 2025.

“The stakes are too high for these complex projects not to succeed,” said Mike Short, C.H. Robinson’s President of Global Forwarding. “The gap between sustainability goals and enough renewable energy to meet those goals can only be filled with a viable supply chain. That supply chain stretches across continents, from mines to manufacturing plants to some of the most remote places on Earth. Wind farms are being built in the ocean. Solar farms with millions of panels are rising in the desert. Just to make a solar panel, roughly 40 different components need to get to the factory, including precious metals. These projects are built on tight timelines and budgets, and companies risk millions in unexpected costs if there are delays anywhere along the way.”

Five supply-chain barriers pose the biggest threats to keeping up with the world’s demand for green energy:

  • Special equipment needs: Wind turbines keep getting bigger, with some as tall as an 85-story building. The sweep of the blades is more than an acre. Moving oversized parts requires both special expertise and equipment, including flatbed trucks that are in exceptionally short supply. This year has seen load-to-truck ratios over 100:1, meaning 100 loads waiting to be delivered for every flatbed truck available. Solar equipment, on the other hand, has sensitive electronics and glass easily subject to damage, and is also competing for transportation capacity amid one of the tightest markets in history.
  • Unpredictability: Five years ago, the movement of goods such as solar panels out of Asia was high volume, low cost. Now, ship capacity is scarce and more expensive because of fewer shipping lines and a global container shortage. Port congestion makes it harder to know when your vessel will arrive, when freight will be unloaded or when enough truck chassis will be available to move it.
  • Global supply chain visibility: If 45 containers a day need to arrive at a project site from different origins, knowing each load’s location at any time is critical for contingency planning, timeline management, cost mitigation, and decision-making such as whether 25 or 75 workers are needed at an installation site on any given day. Without centralized visibility and management, blind spots fuel more unpredictability and projects become subject to disparate processes across multiple vendors.
  • Tighter budgets: Rising costs– from polysilicon used in solar panels to aluminum to freight charges – are adding pressure to the profitability of projects. Unexpected costs when projects don’t go as planned, like parts arriving late or damaged, can then erase profit margins. Fines are a constant threat.
  • Strict timelines: Because developers and investors are hurrying to get projects started in order to meet the deadlines for tax credits, they build in contract penalties that can add up to six or seven figures for parts or equipment delivered late. Also, the nature of these vast, one-time projects makes them vulnerable to lack of resources and infrastructure to meet their needs quickly enough, especially in remote areas.

Renewable-energy companies and investors rely on C.H. Robinson not just to manage transportation, but also to provide the planning, project management, customs expertise, warehousing and on-site logistics to get clean energy projects off the ground.

“NextEnergy Capital has built, owns and operates more than 1.5 gigawatts of solar electric power plants across the world,” said Filinto Martin, Managing Director of NPIII, a NextEnergy Capital fund. “We recently had nearly 200 containers of solar panels arriving to the East Coast of the United States from Asia, with the equipment destined for two different sites. We entrusted C.H. Robinson to find local warehousing and track the inventory until the project sites were ready.”

C.H. Robinson has also helped

  • A renewable-energy developer get 2,000 acres of solar panels delivered on time and on budget for a global beverage company to fulfill a sustainability pledge
  • A manufacturer lower its damaged shipments to 1% and raise on-time delivery to 99%
  • A manufacturer avoid penalties of up to $10,000 per load per day

“These companies cannot afford any black holes in the process, especially during one of the most volatile markets in history,” said C.H. Robinson renewables expert Jim Mancini, the vice president who oversees the company's services and technology for the energy sector. “That’s why we work to anticipate every contingency and offer visibility through our single, global multimodal technology platform, Navisphere. To keep these complex projects on track, it’s crucial to ensure that parts are where they need to be, the right transportation and specialized equipment are available, and the finished product arrives to the project site when on-the-ground teams are ready to receive and install. We are proud to leverage our scale and global suite of services to help renewable-energy companies protect and preserve our planet.”

About C.H. Robinson
C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With $21 billion in freight under management and 19 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multi-modal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 105,000 customers and 73,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit chrobinson.com (Nasdaq: CHRW).

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Kelsey Soby, kelsey.soby@chrobinson.com
Kaelan Richards, krichards@bpimedia.com, 617-777-3883

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Eaton’s Mobility Group Chosen to Supply Electromechanical Variable Valve Actuation Technology to Great Wall Motor23.4.2024 12:30:00 CEST | Press release

Intelligent power management company Eaton today announced it has been chosen to supply an electromechanical actuation system (EMAS) that can deliver an early intake valve closing (EIVC) to the China-based automaker Great Wall for use in a line of hybrid-electric vehicles (HEV). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240423118914/en/ Eaton’s electromechanical actuation system (EMAS) can be easily integrated into a valvetrain and the cylinder head space and controlled by a simple electric actuator. (Photo: Business Wire) “Emissions regulations are driving the adoption of new technologies by our global customers,” said Alessio Lorenzon, global engineering manager, Valves, Eaton’s Mobility Group. “We’re proud to supply Great Wall with our variable valve actuation technology which, in combination with vehicle hybridization, will improve fuel economy in their newest hybrid passenger vehicle lineup.” The Eaton EMAS is a di

Rasa Recognized as a Representative Vendor in Gartner ® Market Guide for Conversational AI Solutions23.4.2024 12:03:00 CEST | Press release

Rasa, a leader in generative conversational AI, proudly announces its recognition as a Representative Vendor in the Gartner® Market Guide for Conversational AI Solutions. Rasa believes this acknowledgment highlights its pivotal role in the future of AI-driven communication and its commitment to delivering innovative solutions that enhance business interactions. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240423570629/en/ Rasa has been recognized as a Representative Vendor in the Gartner Market Guide for Conversational AI Solutions, highlighting its role in transforming business operations through AI-driven conversations. This acknowledgment underscores the importance of evaluating the Conversational AI market to enhance customer interactions, achieve cost efficiencies, and elevate customer service. (Graphic: Business Wire) Melissa Gordon, CEO of Rasa, shares her thoughts: “We think recognition from Gartner® validates our

BeiGene Receives European Commission Approval for Tislelizumab as Treatment for Non-Small Cell Lung Cancer23.4.2024 12:00:00 CEST | Press release

BeiGene, Ltd. (NASDAQ: BGNE; HKEX: 06160; SSE: 688235), a global oncology company, today announced that the European Commission (EC) has approved tislelizumab as a treatment for non-small cell lung cancer (NSCLC) across three indications, including first- and second-line use. “Tislelizumab is foundational for BeiGene’s solid tumor portfolio and has demonstrated its potential across multiple tumor types, including NSCLC, in which there remains a significant unmet need at all stages of the disease,” said Mark Lanasa, M.D., Ph.D., Chief Medical Officer, Solid Tumors at BeiGene. “Today’s EC authorization marks the second in the region for tislelizumab, with both NSCLC and locally advanced or metastatic esophageal squamous cell carcinoma now approved in the European Union. Second-line use in ESCC was also approved just weeks ago by the U.S. Food and Drug Administration, putting us well on our way to fulfilling our commitment to bring this innovative therapy to many more patients around the

Samsung Electronics Begins Industry's First Mass Production of 9th-Gen V-NAND23.4.2024 10:43:00 CEST | Press release

Samsung Electronics Co., Ltd., the world leader in advanced memory technology, today announced that it has begun mass production for its one-terabit (Tb) triple-level cell (TLC) 9th-generation vertical NAND (V-NAND), solidifying its leadership in the NAND flash market. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240423850376/en/ Samsung Electronics Begins Industry’s First Mass Production of 9th-Gen V-NAND (Photo: Business Wire) “We are excited to deliver the industry’s first 9th-gen V-NAND, which will bring future applications leaps forward. In order to address the evolving needs for NAND flash solutions, Samsung has pushed the boundaries in cell architecture and operational scheme for our next-generation product,” said SungHoi Hur, Head of Flash Product & Technology of the Memory Business at Samsung Electronics. “Through our latest V-NAND, Samsung will continue to set the trend for the high-performance, high-density soli

Shippeo Spring Platform Release Reveals All-new Parcel Tracking, Advanced Carbon Emissions Monitoring Features, and Enhanced Container Tracking Data Quality23.4.2024 10:39:00 CEST | Press release

Shippeo, a leading provider of multimodal shipment visibility, announced today their Spring 2024 Platform release, introducing over 70 new features and enhancements, including a new parcel tracking solution rebuilt from the ground up, as well as improvements to road, ocean container, and carbon emissions tracking, along with significant user experience improvements. “I’m thrilled to announce that our latest Spring platform release is available to customers from today,” says Chief Product Officer, Anand Medepalli. “Our entirely rebuilt parcel tracking solution that we’re releasing today is market-leading. Reengineered from the ground up, Parcel Visibility offers enhanced scalability to support our continued expansion into North America and APAC, where we are seeing significant appetite for a simpler, more convenient tool that delivers the high data quality and reliability that shippers and freight forwarders demand in this rapidly changing and competitive market. In addition, we’re taki

HiddenA line styled icon from Orion Icon Library.Eye