Shipping and Supply Chains Emissions Report

By Pianpian Wang

A few months ago, I wrote an article regarding some strategies that help reduce the shipping industry’s carbon emissions. Back then, I projected that some moves might be taken to mitigate the carbon impact of shipping. It is noted that shipping emissions also matter to many businesses outside the shipping industry, such as the retail businesses, travel companies, and any companies relied on freight ships and touring ships throughout their supply chains and services. Therefore, more often, when we talk about shipping emissions, it means logistic emissions generated from transportation.

In this article, I would like to share my brief observations regarding some trends related to transportation and logistic emissions that companies should pay attention to.

Mandatory Measures to Shipping Emissions Are Getting Real

Earlier this week, the European Parliament voted in favor of including greenhouse gas emissions from the maritime sector in the European Union’s carbon market from 2022. In other words, if the final vote got approved, the EU Emission Trading Scheme would be expanded to include emissions from voyages within Europe, as well as international trips that start or finish in an EU port. This move also indicates that using mandatory measures to regulate shipping emissions finally makes it to the government agenda.

If the EU started making the shipping industry pay for its pollution, it may generate ripple effects on pricing on the downstream customers who rely on products or materials from the EU countries. Other regions or countries may follow this move.

Diverse Collaboration Modes to Reduce Logistic Emissions

For those companies that need to import raw materials outside the US, shipping emissions could be the primary contributor to the product’s total emissions, and more and more companies started doing something about it. Currently, most efforts are dedicated to reducing fuel emissions and improving ship design. For example, a Swedish consortium received funding from the Swedish government to create a design that can reduce fuel usage by adding wings to the cargo ship’s body, so the ship can sail with the wind.

Other than the public-private partnership model, companies are breaking the barriers by collaborating together to achieve emission-free shipping regarding domestic logistics. Recently, J.B. Hunt Transport Inc. completed its first delivery, a 120-mile intermodal haul for Walmart, as part of integrating a eCascadia battery-electric truck into its day-to-day fleet operations in Los Angeles. This is a great example to show the feasibility of engaging your suppliers to embrace sustainability, it also indicates that companies from different industries are collaborating to green their supply chains.

Rising New Opportunities for the Travelling Industry

The travel industry struggles to rebound from COVID-19, and it seems like the industry is slowly rising back to where it was. It is worth mentioning that the pandemic still casts a shadow over the public. Plus, with the regulations of climate mitigation posed in the airline industry, the traveling cost could increase in the future. In this context, new opportunities are arising to solve the dilemma.

Researchers suggest using advanced mathematical techniques and combining livestream video with existing photos and videos of travel hotspots, could help revitalize the traveling industry that has been devastated by the Covid-19 pandemic. Uganda serves one great example to show how we can take advantage of virtual tourism. The country reopens its pandemic-bruised tourism sector with a live-streamed, virtual safari this week by featuring six videographers and photographers’ amazing work.

More Customers Care about Shipping Emissions

Many e-commerce companies, small or big, have been embracing massive company-wide expansion accelerated by booming sales during the coronavirus pandemic. More and more customers started showing concerns about carbon emissions generated from their package delivery.