Transport companies can gain competitive advantage by adding sustainable solutions and capabilities to their services as volume returns to the market, says Erik Van Baaren, senior transport industry analyst at independent business analyst, Datamonitor.

 Erik Van Baaren comments: “With end consumers demanding more and more sustainable products, retailers will be seeking to achieve better environmental standards across the supply chain. 

 “However, our latest report* estimates that carbon emissions from the transport sector will increase by over 12% in the next five years compared to 2008 levels, even after the huge volume losses sustained last year. Organisations will therefore have to find innovative solutions to stay competitive

 “Collaborations between retailers, manufacturers and logistics service providers through combining resources and co-sharing can help to achieve efficiencies in the supply chain and reduce the overall environmental impact of the transport industry. However, assuming that a return to growth in freight and parcel volumes will occur in the next five years, efficiencies will have to be realised through either shifting cargo to more environmentally friendly means, or by reducing the intensity of vehicles within respective modes of transport.

“In terms of reducing carbon intensity within modes, the highest yields will be achieved in the road transportation segment, as it is responsible for the majority of volume, and has a relatively high emission level per freight-tonne kilometre (FTK). This could be achieved by updating fleets of vehicles to more fuel-efficient alternatives, or by shifting cargo from road to rail, which could potentially generate large reductions in carbon emissions.”

 According to Datamonitor's latest research, shifting 10% of current road traffic to rail will lead to an 8% decline in carbon emissions, as opposed to other modal shifts.

 Erik concludes: “Recent initiatives have shown some good levels of success but there is still a long way to go to make the transport industry truly sustainable. As demand for greener logistics solutions rises, all parties concerned must do their bit to make the industry more environmentally friendly, which presents an opportunity for industry players with green credentials to win over eco-minded customers.”