The logistics and freight forwarding industry are the backbones of global trade, enabling businesses to transport goods across continents. As a critical component of the global supply chain, freight forwarding facilitates the movement of goods via air, sea, and land. However, this crucial sector is also a significant contributor to carbon emissions, raising pressing concerns about its environmental impact.
Logistic operations are often associated with substantial carbon emissions, high energy consumption, and waste generation. In response to growing concern and demand for environmentally responsible logistics, freight forwarders are significantly adapting. The pressure to reduce carbon emissions and adopt sustainable practices is reshaping the industry, driven by strict regulations and innovative green logistics strategies.
The International Maritime Organization’s (IMO) 2020 regulation marks a major milestone in reducing shipping’s environmental footprint. The rule mandates that the sulfur content in marine fuels be reduced from 3.5% to 0.5%, significantly cutting sulfur oxide (SOx) emissions. This change has driven the adoption of cleaner fuels such as Very Low Sulfur Fuel Oil (VLSFO) and Liquefied Natural Gas (LNG), as well as investments in scrubbers for vessels.
While compliance with IMO 2020 has increased operational costs, it has also accelerated innovation in fuel technology and emissions monitoring. This regulation highlights the industry’s commitment to aligning with global environmental goals. Furthermore, The EU’s Corporate Sustainability Reporting Directive (CSRD) has set a precedent in emissions reporting regulations, requiring shippers to disclose their Scope 3 emissions starting in 2024. This move is expected to influence other nations, with the UK, US, Australia, and Brazil likely to introduce similar regulations. As a result, 2024 marks a transformative year for global emissions reporting standards.
Global logistics is one of the few industries with a specialised emissions reporting framework with the Smart Freight Centre’s GLEC Framework. Complementing this is the recently published ISO 14083 standard, which provides guidelines for quantifying and reporting greenhouse gas emissions from transport chain operations. Together, these frameworks are driving the industry’s transition toward net zero.
The GLEC Framework is likely a key industry standard in 2024 as more businesses adopt accredited emissions measurement tools, fostering greater consistency in emissions reporting across supply chain stakeholders. Simultaneously, the adoption of ISO 14083 is expected to accelerate, offering a standardized approach to calculating and communicating emissions in global logistics. These advancements promise a unified approach to emissions accountability and support the industry’s sustainability goals.
From low-emission transport modes to innovative technologies, these initiatives demonstrate the industry’s commitment to a greener future. Freight forwarders are prioritizing transport solutions that emit fewer greenhouse gases (GHGs), aligning with global efforts to decarbonize logistics. Shipping via sea is significantly more eco-friendly than air freight, especially when optimized with full container loads (FCL), which maximize space efficiency and reduce emissions. Additionally, As an increasingly popular alternative for inland transport, railways offer an efficient and sustainable option.
Sustainability in freight forwarding extends to packaging strategies aimed at reducing waste and optimizing resources. Using recyclable, biodegradable, or reusable materials helps lower environmental impact. Furthermore, optimizing packing design by minimizing packaging size reduces the space needed for transportation, leading to lower shipping costs and emissions.
Digital technologies are also revolutionizing freight forwarding, allowing smarter, more sustainable operations such as route optimization software where advanced algorithms calculate the most fuel-efficient paths, reducing unnecessary mileage and emissions. Digitized documentation, by eliminating paper-based processes, digital documentation contributes to greener workflow, and using blockchain technology for transparent tracking systems to promote accountability and sustainability across supply chains.
Sustainability isn’t confined to transportation. Green warehouses, powered by renewable energy and energy-efficient systems, are also transforming storage and inventory management. In addition, freight forwarders are contributing to a circular economy by designing logistics processes that emphasize reuse, recycling, and sustainable resource use. This shift minimizes waste and promotes long-term environmental responsibility in business.
As climate change concerns grow, the freight forwarding industry is embracing its role in driving sustainability. By optimizing travel routes, adopting digital solutions, and collaborating with eco-conscious suppliers, freight forwarders are shaping a more environmentally responsible industry. This transformation not only addresses immediate environmental challenges but also ensures long-term resilience and relevance in a world increasingly focused on sustainable development. Together, these efforts demonstrate that economic growth and environmental responsibility can go hand in hand.
At Translindo Group, we care about fostering environmental and social responsibility within our workforce and operations. We encourage sustainable development and environmental compliance by applying industry best practices, such as promoting efficiency in freight forwarding through our integrated global logistics services. We are also open to engaging in global collaborative efforts to reduce GHG emissions.
