The freight and logistics sector plays a key role in establishing dependable supply networks that ensure seamless transportation of products from one location to another. Though important to the global economy, this industry is also a major contributor to climate change. Data published by the Massachusetts Institute of Technology reveals that the industry is responsible for eight percent of global greenhouse gas emissions for transporting billions of tons of cargo each year. It goes up to eleven percent if warehouses and ports are included. The growth of emerging economies in Asia, Africa, and Latin America is creating a rise in the demand for logistics, which is anticipated to grow in the decades to come.
Many entrepreneurs around the world have voiced this concern, highlighting that the freight and logistics industry should take a deeper look at its environmental impact and adopt concrete steps to reduce its carbon footprint. Simon Kaye, CEO of New York-based Freight Architect™ and NVOCC, Jaguar Freight, is one of those emphasizing leveraging technology more thoughtfully to improve efficiency and profitability. Considering Jaguar Freight as an example, Kaye reveals that being a non-asset logistics provider, it doesn't own or operate any equipment or facilities. The work-from-anywhere model, adopted years ago, has allowed the company to significantly reduce its carbon emissions, as employees don't need to travel back and forth to work. Additionally, there is no longer a central office that consumes resources.
Scope 3 emissions are produced by assets not owned or controlled by the reporting organization but are indirectly affected by its value chain. This includes business travel, disposal or recycling of sold products, and the activities of companies the reporting organization has invested in. By incorporating sustainability into operations at a deeper level, freight and logistic companies can reduce greenhouse emissions. Freight and logistic companies can integrate bespoke freight visibility and management technology and transportation management systems that allow clients to view the carbon footprint of their shipment from origin to destination. This benefits both parties in making intelligent decisions, such as how to route cargo to ensure reduced impact on the environment.
With accurate data on carbon footprint emissions, shippers and manufacturers worldwide can brainstorm more sustainable methods, as several global situations are affecting the logistics industry. For example, the attacks of the Houthi rebels on ships passing through the Red Sea have forced many ships to travel the long route around Africa. This has caused delays in shipping while increasing carbon emissions due to more fuel usage. Another similar situation occurred in the Panama Canal, where a drought is affecting water levels making it challenging for ships to pass.
Freight and logistic companies should focus on achieving the perfect balance between what’s right socially with what’s right for business. By adopting new technologies, these companies can potentially improve their efficiency and profitability, while reducing their carbon footprint. To create a positive impact on society, these companies can nurture a culture of positivity and support employee wellbeing by focusing on their work-life balance. These are some of the changes that freight and logistic companies can adopt to work in harmony with the environment. As the world is embracing the tech revolution in this digital age, businesses must emphasize everyone's benefit beyond their profit margins.
About Jaguar Freight
Founded in 1993 in New York and London, Jaguar Freight is a licensed freight forwarder and NVOCC. They lead the way as an expert in global supply chain logistics. Since their inception, they have developed world-class supply chain solutions from state-of-the-art technology, transforming logistics and shipping services.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. and Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as , either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. © 2024. Nasdaq, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.