Globally, momentum and friction are rising in finding innovative and cost-effective sustainable freight solutions for the supply chain management. With the growth of eCommerce, it has been estimated that approximately 100 billion cargoes are in transit worldwide every year, and the number seems to be growing yearly. Also, studies show that on several occasions, containers go empty or half-filled, zig-zagging across the city, releasing harmful emissions and pollutants into the environment.

The logistics and shipping industry is the backbone of eCommerce, but they are adding harmful particles to the biosphere through air pollution, noise pollution, energy consumption, emission of harmful gases, and wastage. To meet the revolutionary demands of customers and stay in competition, eCommerce is immensely dependent on the robustness of logistics, shipping, and transportation—the highest contributors to pollution!

Various studies indicate a galloping rise in eCommerce sales in 2024. Sales are expected to move beyond $6 trillion, and predictions suggest nearly 20.1% of retail sales will be digital. For online, offline, or hybrid businesses, adopting eco-friendly logistics and green fleet management is no longer a choice but a compulsory action.

Through this article, let’s explore the reasons for the growing emphasis on sustainability in freight shipping and logistics. A checklist and an indication to make a move towards green shipping practices for a sustainable tomorrow and a profitable supply chain.

4 Reasons for Sustainability in Freight Shipping & Logistics

• 1. Environment— Sustainability in freight shipping and logistics lowers adverse impacts on the environment. The logistics industry must be informed and intelligent about energy and fuel consumption. Fewer trips for delivering or procuring goods reduce fuel and carbon dioxide consumption. Installation of IoT, AI, Machine Learning, and other helpful software tools in logistics can streamline work and provide detailed information about the movement in shipping and logistics. This would provide enough bandwidth to manage and upload goods in proper containers. With intelligent logistics solutions, fuel consumption can be reduced, and other sustainable ways of transportation can be worked out by collaborating with 3PL service providers.
• 2. Cost-Effective— Eco-logistics optimization integrates innovative software to trace and track inventories, enabling timely disbursement of goods as per demand. Augmented and Virtual Reality can be used to package, shift, and stack goods in order. Technology is leveraged to sync demand with the nearest warehouse; this lowers energy usage, saves space, controls production and packaging, and avoids wastage via stockouts or overstocking. Eco-logistics innovations cut costs and accelerate growth.
• 3. Improved Customer Relationship and Brand Image— Sustainable shipping trends and supply chain policies leave a lasting impression on customers. They genuinely appreciate online vendors with sustainable delivery options and prefer dealing with those offering reusable packaging. Customers have no qualms about receiving their order a day later if it is supported by green freight technology. Businesses, whether online or offline, that allow circular economy in logistics, meaning products that have gone back after use for a new supply chain, as in for reuse, recycling, or refurbishing and brought on the shelves again for sale, are regarded as sustainable measures and viewed high by the customers. This builds the reputation and the brand image of a business.
• 4. Compliance with Government Policies— Sustainable last-mile delivery, green freight technology, and other such sustainable freight solutions adhere and comply with government policies and regulations related to the environment. With each passing hour, rules are getting stricter and harsher for the logistics and shipping industry, both for national and international transportation. It is perceived that businesses or enterprises that make an early transition to sustainable logistics know their way to adjust to legal transportation and shipping parameters.

Tips on Eco-friendly Initiatives and Practices

With so many things at stake, opting for green freight technology is not a choice but a mandate for a successful supply chain. In the paragraphs below, we will find eco-logistics innovations allowing green fleet management.

• Embracing Alternative Fuel: Instead of fossil fuels, low-emission fuels such as natural gas, EVs, drones, or biodiesel can be used.
• Route Optimization: Eco-friendly logistics promote efficient route optimization for cost-efficient navigation and better utilization of resources. With advanced technology such as GPS and logistics software, fuel can be saved by optimized route planning and cutting down on covering an extra mile to the destination. It is easy to reroute with intelligent, eco-friendly logistics.
• Load Optimization: Integrated operations software allows for the real-time exchange of information on loading. One of the most beneficial green shipping practices is when sufficient data about empty trucks or carriers leaving the docks is available. This information can be utilized for fuel efficiency, ensuring carriers are fully loaded. This not only reduces cost but also controls the number of trips needed. This upgrades operational efficiency and is one of the most underrated sustainable methodologies.
• Eco-logistics Innovations: Electric and hybrid vehicles and the usage of drones or bycycles as sustainable last-mile delivery are significant examples of green shipping practices. These are known for zero-emission and also contribute to controlling costs.
• Control Over Packaging and Wastage: AR can help with intelligent packaging. It can weigh an order and then pack it without wasting packing material. An idea of inventory through innovative inventory optimization software can reduce overstocking and wastage. It is a compelling, sustainable solution that can control the production of items based on real-time inputs.
• Integration of Smart Logistics and IoT: Integration of software and IoT helps with item tracking and tracing. Real-time information helps in route optimization, enhances operations management efficiency, improves fuel management, and supports environmental responsibility in freight.