The logistics industry has been through chaos recently. Despite this, shippers are focusing more on sustainability, suggests Forto and FourKites’ market research.
According to a report from Forto, a digital forwarder, 65% of consumers opted for carbon dioxide equivalent emission offsetting service for 50% of sea freight volumes in the third quarter. The service comprises the use of renewable energy for transport modes and tree planting. Michael Wax, Forto CEO, views these metrics as indicators towards a positive market shift wherein sustainability topics will be at the forefront.
FourKites, a supply chain visibility platform, surveyed with supply chain professionals in conjunction with Reuters. Based on the results, 39% of respondents are planning to resort to transport processes with lower carbon emissions. 31% responded the same for phasing out non-renewable packaging materials and manufacturing processes. While 40% reported their efforts in enhancing their commitment to sustainability, 44% reported steady holdings.
According to the survey by FourKites, the biggest pain point in the supply chain is end-to-end traceability. 67% of respondents claimed to have this problem while the percentage is higher in the UK (71%) and the highest in Germany (100%). Inaccurate ETAs from carriers is another persistent problem as claimed by 63% of participants.
Henkel’s international logistics head, Paul Avampato, praised FourKites’ contribution towards supply chain visibility. According to him, better visibility supports improved decision making among supply chain players. This data helps understand loopholes within the supply chain such as waste and excessive empty miles. He further states that reducing dwell time helps keep the movement smooth across the network with fewer trucks.
According to Mr Wax, this step towards sustainability is a pivotal point for the logistics sector. This brings a lucrative opportunity for driving innovation and new programmer in the industry to improve the trade, people, the planet, and upcoming generations.