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Fleets of cargo planes grow larger, drones soaring the skies replace bike carriers on the ground, and delivery trucks weave through city streets in hectic routes. Why? All for the sake of convenience and speed of delivery for your e-commerce goods. Recent estimates indicate that e-commerce sales will rise to $5.4
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Fleets of cargo planes grow larger, drones soaring the skies replace bike carriers on the ground, and delivery trucks weave through city streets in hectic routes. Why? All for the sake of convenience and speed of delivery for your e-commerce goods.
Recent estimates indicate that e-commerce sales will rise to $5.4 trillion by 2022. At first glance, the carbon-intensive shipping and delivery associated with e-commerce, especially expedited shipping and last mile delivery methods, may seem to contrast our collective value of environmental sustainability. But that doesnât have to be the case.
In this post, weâll explore how shipping companies are pursuing new strategies for carbon-neutral shipping and explore what that may mean for the future.
In recent years, terms like âcarbon-neutralâ and âcarbon footprintâ have become part of our common vocabulary. But what do they mean? What is carbon-neutral shipping, and why do you need it?
âCarbonâ is shorthand for the greenhouse gases associated with climate change; namely, carbon dioxide and methane. A companyâs âcarbon footprintâ refers to the amount of greenhouse gases it puts into the atmosphere. Recent green initiatives have prompted many corporations to reduce their carbon footprint by mitigating their emissions.
Carbon-neutral shipping is an essential strategy for reducing a companyâs carbon footprint. On one hand, itâs impossible to eliminate all carbon emissions from the shipping process. But companies can pursue carbon neutrality through various methods.
Carbon-neutral policies protect the environment, but they also offer some immediate, practical benefits to companies who pursue an eco-friendly business strategy. First, many customers prefer to rely on a company that embraces sustainable business practices. That is especially true of millennials and young adults. By some estimates, 87% of customers prefer a company with sustainable business practices.
Additionally, the same sustainable practices that reduce your carbon footprint also work to eliminate waste. So while carbon neutrality may seem like a heavy commitment, it can ultimately help you cut costs while maintaining an eco-conscious customer base.
Currently, itâs simply not feasible to completely eliminate all greenhouse gases that your shipping method produces. But that doesnât mean itâs hopeless. There are several steps that you can take toward carbon neutrality.
Step 1: Determine Your Emissions
âFirst, you need to determine the impact your company is already having on the environment. The Carbon Fund provides a helpful Business Emissions Calculator that you can use to determine your companyâs carbon footprint. You can also break down your carbon footprint by category, which may help you pinpoint the impact your shipping process has on your company as a whole.
Step 2: Re-evaluate Your Packaging
âShipping supplies are essential for protecting e-commerce products during transport. But some of these products do little more than make waste. Did you know that between 1950 and 2015, less than 10% of the worldâs plastic was recycled? The rest still clogs our landfills.
Consider investing in recyclable and biodegradable materials, such as the following:
These materials may be an initial financial investment for a shipping company or 3PL, but over time may prove to be more cost-effective than the products youâre currently using.
Step 3: Redesign Shipping Routes
âMany logistics companies can help you analyze your shipping routes and find ways to optimize your efficiency. You may even be able to consolidate your shipping needs with third-party LTL carriers.
Step 4: Purchase Carbon Offsets
âA carbon offset is any financial contribution to environmental projects and funds. These âcarbon creditsâ can be used to offset the impact of your shipping process. However, this practice is often criticized as merely a financial escape hatch for a company that doesnât want to make other changes toward sustainability.
Many e-commerce companies and 3PLs already advertise carbon-neutral shipping and delivery, but several notable shipping companies are committed to reducing emissions and pursuing sustainable shipping models.
When you use UPS, you have the option of purchasing carbon offsets to mitigate the environmental impact of the emissions used during the transport. The carbon-neutral option used by UPS is verified by SGS, an inspection, and a verification company, offering one of the most reliable systems for carbon offsets.
FedEx is making a host of changes in the hopes of becoming fully carbon-neutral by 2040. Currently, the company offers carbon-neutral shipping envelopes, and their plans involve electric vehicles, energy-efficient aircraft, and other innovations to achieve sustainability.
ShipHero understands the fast-paced needs of the shipping industry, which is why we provide two-day ground shipping supported by advanced logistics tools powered by AI. Rather than rely on centralized hubs, ShipHero brings products directly to customersâ doorsteps in a shipping method known as distributed fulfillment, which is a proven strategy for minimizing emissions and reducing costs.
Moving forward, we can expect several innovations in emerging technology to lead the way in the first half of the 21st century.
Electric vehicles have already become standard fixtures on Americaâs highways, and we can imagine that soon these cars will be utilized as an efficient means of shipping. That will drastically reduce, if not eliminate, the carbon released into the atmosphere from combustion engines.
Logistics software will soon govern every companyâs delivery route, providing real-time optimization based on traffic patterns, weather conditions, and other considerations relevant to the delivery route.
While many innovations will focus on the trucks and routes themselves, there will be an increased emphasis on the carbon emissions and environmental impact of warehousing facilities. We might even expect federal regulations to stipulate the kinds of packaging and waste produced by shipping facilities, prompting managers and others to pursue sustainable practices at every level of the shipping process.
These innovations may seem like significant investments, but these carbon-neutral strategies are essential for maintaining our environment for future generations. By embracing change today, we leave our children a brighter tomorrow. Cue the American flag⌠and scene.
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