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Transportation Review | Monday, July 24, 2023
Improved public health may also result from green freight initiatives that reduce air pollution. Heart disease, stroke, and other cardiovascular diseases, as well as respiratory illnesses, are linked to air pollution, according to a study by the World Health Organization.
Fremont, CA: The freight industry has been pressured to reduce its carbon footprint as companies and governments prioritize sustainability. While green freight transport is possible, many companies still need to invest.
So, what is Green Freight?
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Transporting goods by green freight means using vehicles with low or no emissions. Examples of alternative fuel vehicles include electric, hydrogen, and other types and technologies that facilitate efficient routing and logistics. Increasingly, companies are switching to low-emission or zero-emission vehicles because of the economic and environmental benefits. In 2020, the International Council on Clean Transportation (ICCT) reported that over 300,000 commercial trucks and buses use hydrogen and alternative fuels worldwide, representing a 300% increase over 2016. Electric or hybrid trucks accounted for nearly one in five newly purchased medium- and heavy-duty trucks sold in the United States in 2020.
Benefits of Green Freight
Generally speaking, green freight refers to shipping goods in a more efficient and environmentally friendly manner. To reduce greenhouse gas emissions and mitigate climate change, it is an essential component of a zero-emission transportation system. Below are some benefits associated with green freight.
Reduced Emissions
According to the International Council on Clean Transportation, green freight initiatives can reduce up to 30 percent of greenhouse gas emissions. As freight accounts for a quarter of global emissions, this could significantly impact global emissions.
Increased Efficiency
Green freight initiatives can also reduce transportation costs and improve supply chain efficiency. The University of Minnesota found that efficient transport and logistics strategies can reduce total logistics costs by 3-5 percent.
Improved Air Quality
Green freight initiatives can also improve air quality in affected areas. In heavily populated areas near major highways, air pollution can be reduced by up to 50 percent through green freight initiatives, according to a study by the International Transport Forum.
Improved Public Health
Improved public health may also result from green freight initiatives that reduce air pollution. Heart disease, stroke, and other cardiovascular diseases, as well as respiratory illnesses, are linked to air pollution, according to a study by the World Health Organization.
Challenges to Green Freight Adoption
Although green freight has grown, it faces many barriers, including the cost of implementing cutting-edge technologies. For example, companies looking to reduce costs often need help selling electric and hydrogen vehicles.
There are significant initial costs associated with installing charging stations and fueling infrastructure for electric trucks, according to the ICCT report. Green freight is also difficult to finance because electric trucks have limited financing options.
Carbon-free shipping is, however, becoming more popular among organizations. According to a recent Boston Consulting Group study, 82 percent of businesses would spend more on eco-friendly shipping. Their willingness to pay doesn't significantly impact emissions reductions.
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