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DSV's new transport deal with Vestas excludes competitors

DSV Panalpina's new major transport deal with Vestas excludes other freight forwarders from being commissioned for work by the wind turbine manufacturer. DSV is already in dialog with other companies about similar deals, explains CEO Jens Bjørn Andersen in an interview with ShippingWatch.

DSV Panalpina's CEO Jens Bjørn Andersen describes the Vestas deal as unique and and a significant expansion of the tasks DSV Panalpina was already carrying out for the wind turbine manufacturer. Photo: Stine Bidstrup/ERH

With a new and unprecedented collaboration in the logistics industry, DSV Panalpina monopolizes wind turbine manufacturer Vestas' transports.

A week and a half ago, it emerged that DSV Panalpina has entered an exclusive deal to handle all transports for Vestas, the world's biggest wind turbine manufacturer. This includes both general freight and special project freight transports.

The deal came as a surprise to many in the logistics industry, where a number of companies lost Vestas' business overnight.

German competitor DHL Freight has already fired a number of employees in its Danish office as a consequence.

We will not use companies similar to DSV as subsuppliers.

Jens Bjørn Andersen, CEO, DSV Panalpina

In an interview with ShippingWatch, DSV Panalpina's CEO Jens Bjørn Andersen makes it clear that the company will not rely on other freight forwarders to lift the significantly bigger contract it now has with Vestas.

"We will not use companies similar to DSV as subsuppliers," says Andersen to ShippingWatch in connection with the publication of DSV Panalpina's annual report Friday.

Instead, he points to shipowners, haulage contractors and airlines as companies DSV Panalpina will collaborate with to handle the task.

"We are of course dependent on other good partners with transport material to help us carry out these transports," says the chief executive, who emphasizes that they will not collaborate with direct competitors.

Open to more deals

Companies that previously collaborated with Vestas are now in the process of preparing for the new reality.

Earlier this week, ShippingWatch reported that German logistics company DHL Freight has terminated 10 out of 90 employees at its office in Padborg, Southern Denmark. This happened as a direct consequence of the loss of Vestas as a customer.

Blue Water Shipping, Scan Global Logistics and German specialist company Deugro are also on the list of companies that have previously carried out small or big assignments for Vestas.

At DSV Panalpina, Andersen describes the Vestas contract as a unique and "significant and considerable development" of the tasks DSV Panalpina has previously carried out for Vestas, which is already one of DSV Panalpina's biggest customers.

There are at least some companies that have contacted us to hear what this deal was and how one could be considered for a similar deal.

Jens Bjørn Andersen, CEO, DSV Panalpina

Meanwhile, the chief executive does not rule out similar deals in the future.

"This is of course something we will look for in the market going forward. And we're already in dialog with a couple of other companies regarding an agreement. Although maybe not to the same extent," says Andersen and continues:

"There are at least some companies that have contacted us to hear what this deal was and how one could be considered for a similar deal."

Companies like Vestas are not the only ones that are of interest to DSV Panalpina. All industries are in play, says Andersen.

"There is no industry that is not of interest to us."

Requires more employees

Without being willing to disclose any details about the deal, other than the fact it is an annual DKK billion deal, he is willing to say that it will require an increase in employees at DSV Panalpina to handle the increased volumes

"That's for sure. We need to hire quite a few employees throughout the world, not just in Denmark," says Andersen, who is not able to disclose further details.

The deal also poses an entirely different challenge to DSV Panalpina and the company's subsuppliers.

Namely, the fact that Vestas has set a target of becoming CO2-neutral by 2030. One goal of the partnership is therefore to reduce the amount of CO2 emitted during transport.

But there is plenty of time to achieve this target, says Andersen. He does not want to elaborate on what requirements will be imposed on suppliers and shipping companies in future.

"We signed the deal very recently, so it's way too early to enter such specific discussions about it. But we are fully committed to helping Vestas achieve the goals they have set, and we are sure that we will manage to do so."

English Edit: Ida Jacobsen

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