New Report Details How to Reduce Carbon Emissions by 22% in Global Supply Chain by Adopting a Freight Data Exchange Standard
The Coalition for Reimagined Mobility (ReMo), a global initiative created to shape policy and ideas for more equitable and sustainable movement of people and goods around the world, today released a report that details the impact of freight sector data sharing to improve the sustainability and reliability of the global supply chain.
The report includes new modeling from the International Transport Forum (ITF), which found that the adoption of an open freight data exchange standard would not only improve operational efficiencies across the supply chain, reducing the unprecedented level of goods stuck at global ports, it will also result in an estimated 22% reduction in carbon emissions by 2050 and eliminate 2.5 billion barrels of oil per year.
Freight data exchange standards are open or freely available technical specifications that define how to share critical information to seamlessly facilitate global freight logistics. Standardizing the exchange of freight data will support a transition to widespread software-enabled communication forming the backbone of better stakeholder coordination across the global supply chain.
Clean Fuel and Electrification Are Not Enough to Decarbonize the Freight Sector
“We need a comprehensive plan of action to decarbonize our global freight sector,” said Mary Nichols, co-chair of the Coalition for Reimagined Mobility. “Business as usual is not an option. As we transition to increasingly lower carbon fuels, vessels and vehicles, we must also rapidly deploy technology solutions that will drive operational efficiencies – and critically needed climate benefits – across the global supply chain.”
ReMo partnered with the ITF to use its globally renowned freight emissions model to quantify emissions reductions that could be generated by data exchange to share logistical data in near real-time and streamline the supply chain. The impact is significant, including:
- A reduction of sea freight emissions by 280 million tons of carbon per year and road freight emissions by 360 million tons of carbon per year;
- Elimination of 2.5 billion barrels of oil per year; and
- A 6-percent cost savings per ton-kilometer.
A Freight Data Exchange Standard Will Increase Freight System Resilience and Sustainability While Reducing Oil Dependence.
Digitalization of the freight sector has lagged as market and regulatory failures have created barriers to change. The time for action is now.
The Coalition for Reimagined Mobility calls on policymakers to take the following steps immediately:
- Require the use of freight data exchange standards as a condition for accessing ports.
- Deploy freight data exchange standards that communicates near real-time operational data.
- Allocate authority to national governments and ports to require the use of freight data exchange standards.
- Allocate seed funding to ports and industry stakeholders to deploy data exchange standard pilots and projects.
- Initiate and fund targeted intermodal exchange and smart steaming programs to realize near-term emissions reduction benefits.
“The world’s largest shippers and major supply chain players must work together to forge a new path to decarbonization and resilience by embracing digitalization and a globally accepted freight data exchange standard,” said Michael Hynekamp, COO, Wallenius Wilhelmsen ASA. “We, alongside members of the Coalition, are committed to reimagining the freight system in collaboration with private and public organizations around the world. Digital transformation is the way towards our sustainable future.”
Source: Coalition for Reimagined Mobility (ReMo)