The logistics sector needs urgent change due to its huge carbon footprint.
- Transportation of goods accounts for over a third of global CO2 emissions, making it essential to prioritise sustainability.
- The industry’s goal is full electrification, but there are significant challenges with current technology and infrastructure.
- Many businesses struggle with net-zero targets, yet GXO leads the way with innovative solutions.
- AI and alternative fuels are key components in reducing the environmental impact and optimising operations.
Transportation of goods is a major contributor to global CO2 emissions, accounting for over a third of the total. This underscores the pressing need for the logistics sector to embrace sustainable practices and actively drive change.
The industry’s long-term vision involves fully electrified, battery-powered fleets. However, achieving this is hindered by technological limitations such as vehicle range, charging infrastructure, and the substantial capital costs required to transition to an electric fleet.
Recent research highlights that over half of UK businesses find it challenging to meet net-zero targets due to the costs and slow development of alternative fuel technologies. In response, companies like GXO are implementing strategies to mitigate the environmental impact of transportation.
GXO prioritises the use of alternative fuels like liquified natural gas, Hydrotreated Vegetable Oil, and Compressed Natural Gas. More significantly, they are leveraging artificial intelligence and technological advancements to enhance route efficiency, thereby minimising emissions.
Through optimised routing, GXO successfully reduced travel distances from one depot by over 900,000 kilometres annually, cutting diesel usage by more than 250,000 litres and saving over 720 tonnes of carbon emissions. Rolling out AI-driven route optimisation sector-wide could revolutionise emissions reduction.
Technological tools not only optimise route efficiency but also assist drivers in adopting eco-friendly driving practices. GXO collaborates with customers to maximise vehicle usage and reduce empty return journeys, further lessening road time.
By establishing urban logistics hubs, GXO consolidates deliveries from various suppliers, decreasing vehicle movements within congested urban areas. This strategic approach mitigates the broader environmental impact of goods transportation.
GXO’s ongoing progress towards its environmental targets highlights the critical need for collaboration with vehicle suppliers, technology providers, and government bodies to achieve lasting solutions for carbon emissions elimination.
The logistics industry must persist in its efforts to reduce emissions even as it anticipates advancements in electric vehicle technology and infrastructure.
The logistics sector can significantly reduce emissions by adopting innovative technologies and strategies while awaiting advancements in electric vehicle infrastructure.
