Strategies For Greener Shipping

Shipping goods across the world has become an integral part of our globalised economy, but it also comes with a hefty carbon footprint.

Statistics published by the International Renewable Energy Agency attribute 80-90% of global trade to maritime shipping and the shipping sector and estimate that the industry is responsible for around 3% of annual global greenhouse gas (GHG) emissions on a carbon dioxide (CO2)-equivalent basis. Carbon emissions in shipping have been rising steadily over recent years as more and more merchants rely on international transport to move their products around the globe.

The latest experimental estimates released in a new data base from OECD offers monthly breakdowns of CO2 emissions based on various ship categories and by nation. These figures are formulated using an almost instantaneous data stream from location-monitoring equipment used in maritime vessels, encompassing all ship types engaged in international travel.

This post will explore ways that freight forwarders, supply chain managers and logistics professionals can help reduce their merchant's carbon footprint when it comes to shipping goods internationally and suggest strategies and innovations for reducing these emissions as well as some of the benefits associated with doing so.

Understanding Carbon Emissions in Shipping

Carbon emissions are a major contributor to climate change, and shipping operations are one of the largest sources of these emissions. In 2022, an estimated 858 million tonnes of CO2 emissions globally resulted from the shipping industry. A trending topic at events and conferences, industry leaders are looking to take action and reduce these carbon emissions in shipping which are nearing critical levels. Understanding what carbon emissions are, how they impact shipping, and how to measure them is essential for freight forwarders, supply chain managers, and logistics managers who want to reduce their environmental footprint.

What are Carbon Emissions?

Carbon dioxide (CO2) is the most common greenhouse gas emitted from human activities such as burning fossil fuels like oil or coal. Other gases such as methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) also contribute to global warming when released into the atmosphere in large quantities. All of these gases trap heat in the atmosphere which leads to an increase in average global temperatures over time.

How do Carbon Emissions Impact Shipping?

Shipping operations produce large amounts of CO2 due to fuel combustion from ships’ engines while at sea or port facilities on land. These emissions can have significant impacts on air quality near ports and coastal areas where ships travel frequently. Additionally, higher levels of CO2 lead to warmer ocean temperatures which can cause coral bleaching events that damage fragile marine ecosystems around the world.

By understanding the sources of carbon emissions in shipping, freight forwarders, supply chain managers and logistics managers can identify strategies to reduce their environmental impact. Read on to discover how optimising routes and loads, utilizing low-carbon fuels and technologies, and investing in sustainable practices and solutions can help merchants reduce their carbon footprint in shipping.

Strategies to Reduce Carbon Emissions in Shipping

Addressing carbon emissions in shipping is pivotal to achieving an eco-friendlier global supply chain. There are a variety of strategies, from optimising routes and loads to adopting cleaner fuels, that can help make shipping a greener endeavour.

Optimising Routes and Loads:

• Plan efficient delivery routes to minimise fuel consumption. The latest technologies such as CARGOES Flow can provide deep insights and analytics, enabling better informed critical decisions. 
• Optimise load size to reduce fuel usage: Consolidate multiple shipments into one larger shipment, saving on fuel costs and reduces emissions.

Utilising Low-Carbon Fuels and Technologies:

Another way to reduce carbon emissions in shipping is to utilise low-carbon fuels and technologies. For instance, some companies are investing in electric vehicles or using alternative fuels like biodiesel or hydrogen instead of traditional diesel fuel.

Additionally, advanced technologies such as predictive analytics, available in CARGOES Flow, can help identify more efficient delivery routes that use less energy and produce fewer emissions.

Investing in sustainable practices and solutions is an increasingly important part of reducing carbon emissions from shipping operations. Companies should consider implementing green initiatives such as recycling packaging materials or utilising renewable energy sources when possible. Partnering with other organisations that have similar sustainability goals can also help ensure collective success towards reducing overall environmental impact from the shipping and logistics industry.

By utilising strategies to reduce carbon emissions in shipping, such as optimising routes and loads, using low-carbon fuels and technologies, and investing in sustainable practices and technology solutions, merchants can benefit from cost savings, increased efficiency, improved brand reputation and customer loyalty while also making a positive environmental impact.

Benefits of Reducing Carbon Emissions in Shipping

Reducing carbon emissions in shipping operations can provide a range of benefits for merchants. Cost savings and increased efficiency are two of the most significant advantages. By optimising routes and loads, fuel consumption can be reduced, resulting in lower costs associated with transportation.

With key metrics on CARGOES Flow, moving towards a greener tomorrow starts with knowing what impact your cargo makes today and make conscious choices for a better future. CARGOES Flow provides users with a view of the impact each of their shipments has on the environment, with a central calculation aligned with GLEC framework.

Improved brand reputation is another benefit that comes from reducing carbon emissions in shipping operations. Consumers today are increasingly aware of environmental issues and expect companies to take steps towards sustainability. Investing in sustainable practices and solutions will demonstrate a commitment to protecting the environment, leading to an increase in customer loyalty for the company’s efforts.

Reducing carbon emissions in shipping is an important step for all industry stakeholders to take towards creating a more sustainable supply chain. By understanding the sources of carbon emissions and implementing strategies to reduce them, merchants can benefit from improved efficiency, cost savings, and reduced environmental impact. With the right approach and commitment to sustainability, it’s possible for any merchant to make meaningful progress in reducing their carbon footprint in shipping.

Find out more or book your CARGOES Flow demo.