How freight forwarders can lower their carbon footprint

As it is today, freight forwarding makes up about 7% of the world’s total carbon emissions. Now, this may not seem like a lot. But, if we are going to tackle the problem of climate change properly, we need to address it in every way possible. So, are there any ways in which freight forwarders can lower their carbon footprint? And if there are, how viable is it that they will be implemented? Well, let us take a closer look at this rather complicated question.

Fuel alternatives

The easiest way in which freight forwarders can lower their carbon footprint is to use better fuels. Now, this may sound easy on paper. But it gets really complicated, really fast, once you put it into practice. As it turns out, using eco-friendly fuel is not always cost-effective. Actually, it is almost never cost-effective. But, seeing as oil-based fuel is limited and it is bound to run out eventually, any responsible freight forwarder should be looking into fuel alternatives. So, what fuel alternatives are actually viable for a freight forwarder?

Image 1. We need to find green alternatives to oil-based fuel in order to reduce carbon footprint.

Eco-friendly fuel

Around 90% of freight forwarders still use oil-based fuel for their vehicles. This, as you might guess, is not eco-friendly, as oil has a large carbon emission. So, how can freight forwarders lower their carbon footprint? Well, for starters, they can opt for using LNG (liquid natural gas). LNG is perfectly suited for larger machines, as its biggest problem is fuel storage. The main reason why it is difficult to make LNG cars viable is due to the fact that LNG is not energy efficient enough for cars. And the fact that there are not enough LNG pumps. But, when shipping goods via air or water, this shouldn't present much of a problem. Recent research has shown that LNG fuels reduce 20% of GHG (greenhouse gas) emissions on heavy-duty trucks.

Solar-powered freights transport

Solar-powered transport seemed like an impossible task for a long time. But, with the innovations from companies like Tesla, solar-powered transport is more viable than ever. Even now there are strives to make solar energy more present, as it is much eco-friendlier than fuel. With further innovations, we expect that solar energy will become both more efficient and cheaper to manage, which should provide enough incentive for freight forwarders to switch.

With careful logistics, freight forwarders can lower their carbon footprint

Besides switching to different fuel options, there are other ways in which freight forwarders can lower their carbon footprint. Namely, logistics can play a big role in how much of a carbon footprint freight transport leaves. Remember, freight forwarding is often a multinational, cross-continent operation. Which means that a carefully laid out plan can save a lot of fuel and time. But, as it is with all large-scale projects, it is not that simple.

Image 2. Logistics in freight forwarding can be tremendously complicated.

Dealing with logistics

There are some tried and true ways in which freight forwarders can lower their carbon footprint with logistics. The simpler ones are:

• Implementing eco-friendly vehicles (with special filters and engines).
• Using intermodal transport for low carbon emissions. This means switching vehicles to the "greenest" ones when necessary.
• Share of groupage. This method entails companies working together in order to pile up small shipments into larger ones. Thereby reducing the necessary fuel and time to transport them.
• Using green warehousing while storing containers can be quite beneficial for the environment.
• Reducing the speed of vehicles when possible. The slower the vehicles are, the less carbon they emit.

Now, these are all proven ways in which you can lower your carbon footprint, but few companies actually opt for using them.

The biggest problems with lowering carbon footprint

The main reason why we still have issues with greenhouse gasses and high carbon emissions is not fuel or technological advancement. After all, we've had ways to reduce our carbon footprint for a while now, and most companies don't want to bother implementing them. But what is stopping us from going completely green with freight forwarding?

Cost of implementation

The biggest obstacle is the cost of implementation. Even cheaper solutions, like using LNG come at a high cost once you factor in all that you need to do. Now, there are companies that can bear these costs. But they are usually unwilling. Due to shortsightedness or lack of information, they fail to see how important it is that we reduce our carbon footprint and help our environment. The only reliable way for companies to implement these changes is if they become cost-effective. And, with any luck, this should become a reality in the coming years.

New technologies

Another problem that people face is the implementation of new technologies. Especially the ones that deal with information and logistics. Dealing with logistics is much easier if you are willing to communicate your information and work with your competitors. Now, as you might guess, not a lot of companies are willing to do so, especially when it comes to working with foreign companies. But what we feel will happen is that new technologies will make working together with other companies both easier and more lucrative. Remember, most logistic solutions not only bring eco-friendliness but also bring cheaper transportation.

Image 3. With new technologies, freight forwarders can lower their carbon footprint, especially when it comes to logistics solutions.

Lack of awareness

Finally, we have to come to terms with the fact that some people simply don't care. Remember, climate change is not something that everyone agrees on. Some countries have a wide-ranging policy that outright declines climate change. And, as a result, most of those countries have large greenhouse gas emissions. This is why it can be really hard sometimes for freight forwarders to implement eco-friendly measures, as there is a lot of competition that has no plans of doing so. But, with any luck, being eco-friendly should become the norm in the near future, as we are running out of both oil and options.

Acknowledgment
We thank the contribution of Lisa Roberts