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Reducing logistics emissions - it’s not just about the money


I


mproving fuel efficiency and reducing emissions of green


house gases like CO2 is central to European transport policy at the present moment. Some shippers will see this as an opportunity to benefit from reduced freight rates:


lower


emissions can be achieved from reduced fuel consumption; reduced fuel consumption means a lower fuel bill. But should an expectation of a price reduction be a proper motivation for shippers to use more fuel efficient services? At a time when most media and


political talk is about survival of the Euro and preventing the global economy from sliding head-first into another recession it seems strange to be talking about protecting the climate. But the climate change agenda is not going to go away. Indeed, the big question is how will transport reduce its emissions? Be under no illusion; the


regulators of Europe are not afraid of taxing industry further, to pay for their environmental pollution, and to apply a stick to all those that do not reduce their emissions of CO2 from transport – even though it might seem unfair to be considering this at a time when trade is very uncertain, consumer confidence is fragile and everyone is trying to cut their costs just to survive.


The European Commission has


to find ways of making Europe a ‘low carbon economy’ by 2050, and transport must reduce its emissions by “at least 60%” of 1990 levels by 2050 according to the White Paper being proposed. This is what EU Member States have agreed to. They are looking in particular at shipping and heavy duty vehicles (HDVs) for significant cuts in emissions. As ever, taxes, levies or other forms of charges appear to be among the favoured options to beat industry into compliance. At a workshop in Brussels


recently, organised by the European Commission - Climate Action and the International Council on Clean Transportation (ICCT) - one point of view that emerged suggested that


low levels of investment in


more efficient engine and truck/ trailer designs was in large part due to a lack of money within the road freight industry. With margins being squeezed as shippers drove prices down in an increasingly competitive market, the road freight industry fears shippers who would expect a portion of any fuel cost savings that resulted from expensive investments by the haulage industry. Where, then was the incentive to invest? The Shippers’ Voice suggests


an expectation of reduced freight rates from investments by carriers, whether in road transport, air, rail or shipping is unrealistic if it has been derived from an investment made by the carrier or logistics company. Companies should have a right to recoup their investments; but the motivation for carriers to invest should not be to avoid taxes or other levies and charges that might be imposed on them, but to be more competitive and win new business. Shippers are increasingly looking


to reduce their own carbon footprint. Their primary motivation is not one of reducing costs (although that would be welcomed) but


to win


new business and increase sales from an ever demanding consumer who wants sustainably produced and transported goods. And they are not prepared to pay more for it, because they too are facing difficult economic times. If evidence were ever needed


of this fact, look around and count the many groups and individual companies attempting to measure and monitor


emissions from


transport; and look how many schemes are being joined or even driven by shippers. It is time that these initiatives


came together and created international standard schemes


so that benchmarks of emission performance can be reliably made. The more schemes are out there, the more difficult it is to know which one to choose; or perhaps you have to use several because different suppliers or customers use different schemes and methodologies. Just as we need fuel efficiency


we need efficiency in the measuring of emissions. And the regulators need consistency of approach also. It


is inevitable that the European


Commission will be looking to such a CO2 measurement and reporting tool for the road freight sector; they will need this if they produce regulations which set emission reduction targets for sectors, or standards for emission- reducing technologies and designs of trucks and trailers, for example. They may also need it if they decide to use economic sticks to beat industry into compliance. Which brings us to the question:


Do we really have to look to penal charges to encourage industry to reduce their emissions and pay for the damage to the climate and environment it causes? Reducing energy dependence


and subsequent emissions from the supply chain is, as we have already seen, a sensible business strategy anyway and surely incentive enough?


NEWS ROUNDUP FORWARDING & LOGISTICS


Logistics company Torque has opened new offices and warehousing near Heathrow airport. Torque, the former Elite Group which was rebranded earlier this year, says that the new site at Galleymead Industrial Estate provides 10,000 square feet of warehousing and offers a full logistics service from origin through to end customer. Services provided include air freight, warehousing, imports and exports, end to end service, processing and pick and pack.


Northern Ireland haulier Woodside Group has bought Belfast- based forwarder All-Route Shipping. The forwarder will continue operations under its own management and the acquisition will expand Woodside’s existing 350-strong staff by a further 20.


UK-based transport company Europa Worldwide Logistics has formed a joint partnership with World Mega, Hong Kong and EWG Logistics (Hong Kong). Trading as Europa Worldwide Logistics (Asia), the company said it would extend its activity in Hong Kong and China and wanted to significantly increase its air and sea freight movements to and from the region. The Hong Kong office will be managed by Carmen Tsang, supported by Chris Lo and Yvonne Yum. Europa has also signed a three-year franchise agreement with CFS International in Dublin to act as partners between Republic of Ireland and the UK. The franchise agreement allows CFS Dublin to trade under the name of Europa Worldwide Logistics in Ireland and the use of the various logos associated with the brand name.


Kuehne + Nagel said it had concluded the anti-trust action over price fixing in the US aſter the District Court approved its plea agreement with the Department of Justice entered in September 2010. The forwarder has agreed to pay a fine of about $9.9m. The Department of Justice and the Court recognised that KN provided substantial assistance to the US authorities in the investigation which dates back to 2007.


Recruitment agency SDW has set up a dedicated online jobs board for the logistics and supply chain sectors, which claims to slash recruitment costs compared to traditional agencies. Candidates are screened before being added to the site and are then able to apply for live positions advertised. They can also control who sees their profile. SDW’s clients include, Damco, Allport, DHL Global Forwarding, DB Schenker, Tesco, Panalpina, Hyundai Merchant Marine and Toll Global Forwarding - www.logisticsjobsuk.co.uk


US-based NVOCC Ocean World Lines (OWL) has opened an office in Houston. In addition to containerised and breakbulk freight, OWL Houston will handle project and out-of-gauge cargoes too large for standard containers as well as logistics solutions for the petro- chemical industry. Heading the Houston team as regional branch manager is Abel Edgington, a 16-year veteran of logistics operations and management in the Texas area.


DHL Global Forwarding has launched a global marine spare parts logistics ‘control tower’ in Singapore, the second busiest port in the world. DHL plans to invest US$15 million over the next five years to enhance its services to the sector, including multi-modal transport solutions ranging from pick up at supplier warehouse to on board delivery and reverse logistics for parts return.


Kerry Logistics has relocated its Express command centre from Bangkok to the east of Thailand, within 20km of Laem Cha Bang deep sea port. The new centre is also within an hour of Suvarnabhumi airport over elevated highways. It has also established distribution centres in Siracha, Chonburi, Chacheongsao and Rayong on the eastern seaboard and in Korat Province in the north east of Thailand, which are all unaffected by widespread flooding.


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