One of the biggest challenges that the global logistics industry faces over the next few years is from environmental legislation. Governments and consumers are showing an increasing interest in the level of ‘food miles’, i.e. the distance between where a product originates and its eventual market. In particular this is likely to detrimentally affect the movement of goods from developing countries in continents such as Africa to markets in Europe and America. This would inevitably impact on the associated logistics sectors such as air cargo and sea freight.

However the simplistic concept of food miles tells only part of the story. Increasingly environmental campaigners are looking at the ‘carbon footprint’ of products, taking a more holistic view of their energy use. Although more complicated in the way that it is calculated, the many various factors which are taken into account should provide a more equitable view of the global freight industry’s role in carbon emissions.

For instance, many perishable goods which are grown in cooler countries need high levels of fertiliser or require greater energy levels to maintain warm temperatures in glasshouses. In terms of carbon footprint this is taken into account making goods grown in warmer countries more competitive in terms of energy efficiency. This is despite the fact that they may need to be air freighted to their final destination. One piece of research has shown that growing roses in Kenya emits just 17% of the carbon dioxide compared with those grown in the Netherlands.

The situation gets even more complicated when seasonality is taking into account. Perishable goods such as apples require storage in temperature controlled warehouses if they are to be supplied to markets out of season. Therefore the longer they are stored, the less ‘competitive’ they are against products which are supplied direct from remote markets.

In many cases, products grown in developed markets also have substantial amount of domestic food miles, due to the centralisation of retailers’ distribution systems. This may be more efficient in logistics terms, but not as far as the carbon emissions produced by the extra transportation is concerned.

So, will the carbon footprint concept have a real and lasting impact on the global logistics industry? Although it is often difficult to say how these trends will develop, it seems that manufacturers and retailers, who must be the driving force behind these kinds of initiatives, are taking the idea very seriously. If they are required by law to account for their carbon emissions, then their logistics providers will have a key role to play in the measurement process. Moreover, they will also be required to reduce their own carbon footprint and demonstrate how they are going to do it.

The implications could be even more far-reaching. There may be significant changes to distribution systems in terms of warehouse location, and even modal choice. Depending on the level of government intervention, carbon footprints could in theory, lead to a revolution in logistics strategies and operations.

Source: Transport Intelligence

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