ULM, Germany, April 29,
2024 /PRNewswire/ -- Transporeon, a Trimble Company,
has released "The 2024 Green Freight Report: Is Transportation on
Track?" The report covers the road freight sector's decarbonization
efforts and priorities as an information source for scenario
planning, decarbonization strategies, target setting and action
planning.
When it comes to decarbonization strategy for the transport
sector, modal shift (21.8%) was the top choice to drive freight
decarbonization in 2023, according to the report. Among other top
shippers' choices to drive freight decarbonization were load and
routing optimization (18.2%), as well as carrier optimization
(13.8%).
Clearly, shippers are looking for more multimodal solutions,
more carbon-efficient operations, and even more carbon-efficient
carriers, but optimizing routes and carriers requires primary data
provided by carriers.
Sustainability Equals Business Opportunities
The data
reveals that a quarter of the responding carriers and more than
half of the shippers consider road freight decarbonization to be a
significant business opportunity. Although 24% of carriers cite
environmental sustainability as a significant or very significant
business opportunity, this number is down from 27% in 2022, which
can be attributed to future uncertainty as well as instability of
the current economic climate.
Other findings on key drivers of freight decarbonization
include:
- Regulation continues to be seen, particularly by carriers, to
be the leading driver of decarbonization followed by different
forms of monetary incentives.
- Specifically, as a motivator for decarbonization, carriers
would appreciate customers that are paying premiums or are offering
longer contracts, but also governmental subsidies and tax
incentives.
- Quick wins like fuel reduction measures/technologies and
transportation management platforms that support CO2 measurement
and reduction have immediate positive impacts on operating costs,
while regulation and changing customer behavior usually require
longer lead times.
However, many respondents lack a coherent decarbonization
strategy – and are not accurately measuring emissions.
59% of the responding carriers reported being able to calculate
their transport related CO2 emissions, compared to 55% in 2022.
Over half of the responding carriers reported using either a
Transportation Management System (TMS) application or third-party
calculation tool to calculate their CO2 emissions related to
transport.
Despite respondents recognizing multiple benefits for their
business to decarbonize, most shipper respondents are not aware
whether their company has a freight decarbonization strategy in
place (56.91%). Only 16% were certain their company had implemented
targets and/or a strategy. This demonstrates a significant gap
between intention and execution.
This gap becomes even more evident when considering how shippers
and carriers are measuring their carbon emissions. Only 20% of
respondents are measuring carbon emissions using primary data and a
significant proportion (40%) still rely on less accurate estimated
data.
Access to quality data and the use of reliable calculation
methods are a prerequisite for effective carbon emissions
management. Officially recognized methodologies, like ISO 14083 or
the GLEC framework, are the gold standard for calculating
CO2 emissions, if backed by primary data. However, the
number of shippers using such methodologies is still under 50%. On
the carrier side, less than a quarter (23%) of respondents said
they were using these methodologies, while 38% reported use of
their own methods, which leaves a potential gap in reporting in the
future.
Collaboration and Data Sharing is Key to Support
Decarbonization
Almost half (46.8%) of carrier respondents
say they are not willing to share their primary data to allow for
others to calculate CO2 emissions. According to Transporeon's
research, the level of collaboration for decarbonizing freight is
very low. With the low level of willingness on the carrier side to
collaborate on data sharing and with more than half (53%) of the
responding shippers reporting that they do not actively engage
their carriers on decarbonization, suggests a lack of trust and
collaboration between shippers and carriers. There is also an
absence of industry-wide collaboration between shippers, with only
3% of respondents citing this as a priority.
This low level of collaboration goes both ways. For instance,
most shippers (53%) do not engage actively with carriers to
decarbonize freight transportation and 70% of carrier respondents
report that significantly less shippers requested CO2 emission data
in 2023 than in 2022 – a concerning trend.
Final Thoughts
Serge
Schamschula, head of ecosystem at Transporeon said, "This
survey reveals that most stakeholders within the supply chain find
collaboration too complex. In order to enhance efficiency, all
parties can look for seamless collaboration by adopting a network
approach. In addition, decarbonization requires teamwork. To ensure
robust emissions calculations and trust in the data, collaboration
within the freight decarbonization ecosystem can be significantly
facilitated by a smart platform in the future.
The report was conducted in collaboration with Trimble, KLU
Kuehne Logistics University and Smart Freight Centre, and is based
on the findings from a global survey with over 700 respondents
including 181 shippers and 527 carriers in Europe and North
America.
Access the "2024 Green Freight Report: Is transportation on
track?" in its entirety at:
https://www.transporeon.com/en/reports/green-freight-report-2024.
About Transporeon
At Transporeon, a Trimble Company,
our mission is to bring transportation in sync with the world. We
power the largest global freight network of more than 1,400
shippers and retailers and more than 150,000 carriers and logistics
service providers. Every day they execute more than 110,000
transports on our platform and book more than 100,000
dock-appointments for loading and unloading. In the course of one
year, roughly €55bn in freight is being processed on our
platform.
Our leading transportation management platform connects all
actors along the supply chain. It facilitates collaboration between
the different parties, helps to automate manual processes and
provides valuable real-time insights. The modular Application Hubs
solve specific logistics challenges and range from freight sourcing
over transport execution and dock and yard management to freight
audit and payment. Data hubs provide insights into logistics
operations, market developments and carbon emissions, next to
ensuring transparency in the supply chain through visibility. Our
platform works across all geographies and all modes of
transportation, empowering logistics teams to move, manage and
monitor freight.
Transporeon is headquartered in Ulm, Germany, and maintains 18 offices around the
globe with over 1,400 employees across 27 countries. For more
information, visit: www.transporeon.com.
About Trimble
Trimble is transforming the ways people
move, build and live. Core technologies in positioning, modeling
and data analytics connect the digital and physical worlds to
improve our customers' productivity, quality, safety, transparency
and sustainability. For more information about Trimble (NASDAQ:
TRMB), visit: www.trimble.com.
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