Clean Trucks: Much Needed and Ready to Deliver

There was some good news from the U.S. Energy Information Agency recently. It found that the Clean Trucks program, which is expected to be jointly finalized this summer by the Environmental Protection Agency (EPA) and the Department of Transportation (DOT), will deliver huge carbon emission reductions.

"Kenworth truck" by Lisa M. Macias, U.S. Air Force via Wikipedia

The Clean Trucks program is designed to improve fuel efficiency and reduce greenhouse gas pollution from the freight trucks that transport the products we buy every day, as well as buses, heavy-duty pickup trucks and vans, and garbage trucks. The program’s first performance standards went into effect in 2014. The EPA and DOT are currently developing a second phase of performance standards. Strong standards can help keep Americans safe from climate change and from unhealthy air pollution, reduce our country’s reliance on imported oil, and save money for both truckers and consumers. Read more

Let's Stop Pitting In-Store vs. Online Shopping: Both Need to Up Their Sustainability

jason_mathersWe all like clear-cut, simple, black and white answers. But the world, as you well know, is a really complex place. Yet despite this general acknowledgment of complexity, we still get caught-up in simplified debates: paper vs plastic; cloth vs disposable diapers; and now shopping online vs shopping at the store.

This is not a cage match. The fact of the matter is that both shopping online and shopping at stores are here to stay. And this is a good thing. We now have more choices. Citizens and companies can leverage these choices to minimize their environmental foot print.

Into the debate mindset, Simon Property Group released an assessment, Think Before You Click: Does Shopping Behavior Impact Sustainability? Simon is a leading real estate company that owns a number of malls. It also has been a host company for EDF Climate Corps.

The paper is a valuable because it sheds light on one way people shop: buying multiple items at once and combining the shopping trip with other activities. It concludes that — in the specific scenario Simon created — shopping at the store has a lower environmental impact.

To me, the conclusion is the least insightful aspect of the study. It is not surprising that a large owner of malls would choose a scenario that highlights the attributes of shopping at malls compared to shopping online. What is most insightful to me is the attributes that determine the environmental impact. Read more

Go Farther, Faster to Cut Truck Pollution

jason_mathersThe U.S. has put in place well-designed policies to cut climate pollution, and, with adopted and proposed policies, the nation’s 2025 climate reduction goals are within reach.  However, we are not there yet, and important work remains.

Big trucks have a critical contribution to make in cutting emissions now and well into the future. Cost-effective technologies are available to significantly reduce fuel use. Conversely, if we don’t take common sense steps today to cut climate-destabilizing emissions from this sector, climate emissions are projected to rise by approximately 15 percent by 2040. This is particularly problematic when you consider that the nation must reduce carbon emissions by at least 83 percent below 2005 levels by 2050 to prevent severe, potentially catastrophic, levels of climate change. Without further action to cut emissions from heavy-trucks, the sector would consume nearly 40 percent of our national 2050 emissions budget – a level that is clearly not sustainable. Read more

Walmart Vaults Past Fleet Efficiency Goals Ahead of Schedule

It’s one thing to reach a goal, stop and toast your success. But in the case of Walmart’s announcement yesterday, the finish line became a mile marker and now the company is looking at how much farther it can go.

In 2005, we worked with Walmart to set its first long-term freight goals – to increase its fleet efficiency by 25 percent by 2008 and then to double it by 2015. Walmart cleared the first goal with room to spare and announced yesterday that it has not only doubled fleet efficiency but is now on track to go further – and in the process, will avoid almost 650,000 metric tons of CO2 and save nearly $1 billion in this fiscal year alone.Trucks-Walmart

It’s a testament to the holistic approach Walmart’s taken to improve the efficiency of its fleets. The Walmart sustainability team started by choosing a specific metric of cases shipped per gallon burned in 2005 – shipping the most cases of goods the fewest miles using the most efficient equipment – and then attacked the problem from all sides to get it done.

As companies work to increase the efficiency of their freight moves – taking steps on their Green Freight Journey – it’s tempting to choose one area to work on at a time. But by choosing a few key areas to focus on – developing innovative solutions for loading, routing and driving techniques, and collaborating with tractor and trailer manufacturers on new technologies – Walmart was able to bolster freight efficiency along its supply chain at multiple points. Read more

Collaborative Logistics: Shipping Together to Save Together

Collaborative logistics – where multiple companies cooperate to share freight capacity – holds the key to dramatic reductions in freight emissions and costs. Unfortunately, most consumer packaged goods (CPG) companies continue to manage discrete lines of supply to retail customers, passing up these opportunities.

  • Partially full trucks today run side-by-side on the highway, even though they are travelling to the exact same retail distribution center (DC), and freight could have been combined.
  • Outbound deliveries of full trailers ride alongside empty trailers returning home to the same destination after a delivery, even though the outbound shipper could have leveraged the opportunity presented by the empty trailer for an aggressive backhaul rate.
  • Heavy and light products cause trucks to weigh out before they’re full and cube out below the truck’s weight capacity has been reached, even when the solution could have been as simple as combining shipments of cotton balls and hammers traveling along the same route.

Examples of collaborative logistics at work

ocean spray More and more companies are recognizing the value of collaboration in meeting their sustainability goals. It turns out that when shippers climb out of their silos, good things happen. These are just a few examples of solutions being employed by companies:

  • Ocean Spray and Tropicana.  Tropicana shipped orange juice north from Florida in refrigerated box cars, which often travelled back empty to Florida.  Ocean Spray trucked its juice products from New Jersey to Florida along the same route. By shifting most of this TL volume to utilize Tropicana’s rail backhauls (CSX), Ocean Spray cut freight costs 40% for this lane and reduced greenhouse gas emissions 65%.
  • Whirlpool and Daltile. Both of these large manufacturers have factories in Monterrey, Mexico and ship product into the U.S. via rail. Daltile’s heavy ceramic tile reach a rail box car’s 200,000 pound weight limit with enough room for a 53-foot trailer. Meanwhile, Whirlpool’s appliances were cubing out box cars at just 35,000 pounds.  The solution?  Put four truckloads of tile in each box car (160,000) and fill the rest with refrigerators.  Each company now pays just 50% of the cost for the trip, but gets 80 percent of the maximum cube or weight capacity. Daltile’s complete freight collaboration program, generates $3 million in annual freight savings and reduces diesel fuel usage by more than 600,000 gallons per year.

Here are some tips to help your company get started on collaborative logistics:

  • Leverage your 3PLs. They service many companies and are in a good position to identify collaborative logistics opportunities and partners.
  • Look to competitors. Your freight is likely going to the same customers and DCs.
  • Share cost information. When lo-loading freight, mutual trust is critical to determining an equitable cost-sharing arrangement. Both companies must be transparent about what they are paying now.
  • Dedicated the required resources. The right collaborative logistics projects can have a huge payoff, but they require significant time and resources to pull off. Don’t underestimate the time required to make these inter-company projects work.

Find more tips on collaborative logistics and other green freight initiatives in EDF’s comprehensive Green Freight Handbook – a free guide to helping you achieve your sustainability goals.

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Companies Hail Triple-Bottom-Line Benefits of Cleaner Trucks

Ben and Jerry’s became the latest corporate voice calling for strong fuel-efficiency and greenhouse gas standards for heavy trucks. In a Guardian op-ed, CEO Jostein Solheim made a compelling triple-bottom-line case for protective standards for new trucks.

holycowinc_2265_2844729Mr. Solheim noted that seventeen percent of the company’s carbon footprint is associated with transporting products. This includes bringing ingredients to manufacturing facilities (three percent) and moving the finished products to distribution centers (fourteen percent).

Like packaging, transportation and distribution is a consistent, significant carbon footprint component of every product: six percent of H&M clothes; twenty-five percent of the carbon budget from Mars; and thirty five percent of Philips operations, for example. And, trucks are the largest single component of distribution emissions, accounting for 57% of the collective impact. Therefore, it is in the interest of every product manufacturer and brand in the U.S. to see these trucks use less fuel.

Freight-share-GHGsThe single most impactful thing we can do today to reduce emissions from product distribution is to build more efficient trucks. We have the technical know-how to cost-effectively double the efficiency of freight trucks. We also know that having well-designed standards in place is a necessary step to bringing these solutions to market at scale. Read more

Improve Freight Capacity Utilization to Reduce Truck Emissions

Whether it’s a trailer, a container or a boxcar, better capacity utilization reduces the number of required freight runs and reduces truck emissions.

Despite the fact that most logistic professionals understand the value of building fuller truck-loads, recent research showed that 15–25 percent of U.S. trucks on the road are empty and, for non-empty miles, trailers are 36 percent underutilized.

Source: Homayoun Taherian, Cnergistics, LLC

Source: Homayoun Taherian, Cnergistics, LLC

Capturing just half of this under-utilized capacity would cut freight truck emissions by 100 million

tons per year – about 20 percent of all U.S. freight emissions – and reduce expenditures on diesel fuel by more than $30 billion a year (CELDi Physical Internet Project).

Nearly every company can improve trailer capacity utilization. Here are some real-life examples:

Kraft Foods: Because of the variety of products either cubing-out trailers (reaching the volume limit) or weighing-out trailers (reaching the truck weight limit), Kraft’s refrigerated outbound shipments were averaging only 82 percent of weight capacity. Kraft used specialized software to convert demand into optimized orders to maximize truck usage without damaging products. As a result, Kraft cut 6.2 million truck miles and reduced truck-load costs by 4 percent.

Trailer Orientation

Walmart: The world’s largest retailer was able to increase the number of pallets shipped in a truck from 26 to 30 simply by side loading pallets.

Stonyfield Farms: This dairy product manufacturer worked with its clients to help them decrease the use of dunnage (inexpensive or waste material used to protect cargo during transportation), allowing the company to maximize the available space per trailer.

What’s your load factor on outbound trailers?

To improve trailer capacity utilization as well as source other ideas to create a more sustainable freight operation, download EDF’s free Green Freight Handbook.

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More Efficient Trucks Will Improve the Bottom Line

Here in the United States, the Environmental Protection Agency and the Department of Transportation will unveil new fuel efficiency and greenhouse gas standards for big trucks soon, according to the New York Times. At first glance, many companies might conclude that these new polices do not impact them. They’d be mistaken. In fact, they would be overlooking an enormous opportunity to cut costs while delivering real-world progress on sustainability.

Impact-of-fuel-efficiency-updated-5-15-low-rezThe fact is that nearly every company in the United States is reliant on heavy trucks, which move 70% of U.S. freight. Brands and manufacturers use trucks to bring in supplies and ship out final products. Retailers and grocers count on trucks to keep the shelves stocked. Technology companies need trucks to deliver the hardware that powers their online services. Even Major League Baseball has turned its dependence on trucking into a quasi-holiday.

More efficient trucks matter to all business because they will cut supply chain costs. Last year, American businesses spent $657 billion dollars on trucking services. A lot of that money went to pay for fuel – the top cost for trucking, accounting for nearly 40% of all costs. Read more

Freight Sustainability Strategies: How to Get the Most From Every Truck Move

It’s no secret that better trailer utilization reduces the number of required freight runs. Fewer trucks on the road means lower freight costs and reduced greenhouse gas emissions – an excellent freight sustainability strategy.

Despite the obvious benefits, recent research from Cnergistics has determined that 15 to 25 percent of the trailers on U.S. roads are empty. For the non-empty miles, these trailers are 36 percent under-utilized. Capturing just half of this underutilized capacity would cut emissions from freight trucks by 100 million tons per year – about 20 percent of all U.S. freight emissions – and reduce expenditures on diesel fuel by more than $30 billion a year.

Source: Homayoun Taherian, Cnergistics, LLC

Source: Homayoun Taherian, Cnergistics, LLC

If you’re serious about pursuing freight sustainability strategies, load optimization is a good place to start.

Following are just a few examples of load optimization strategies in action. More can be found in EDF’s Green Freight Handbook – a practical guide for developing freight sustainability strategies for business. Read more

How to Use EDF's Green Freight Diagnostic Tool

There are many ways to reduce freight-related greenhouse gas (GHG) emissions. But which strategies make the most sense for you?

EDF’s Green Freight Handbook provides a framework to help you answer this question based on what initiatives will achieve the greatest environmental benefit in the least amount of time. The key is our Green Freight Diagnostic Tool.

Here’s how it works.  We focus on EDF’s five key principles for greener freight:

  1. Get the most out of every move
  2. Choose the most carbon-efficient mode
  3. Collaborate
  4. Redesign your logistics network
  5. Demand cleaner equipment and practices

For each key area of potential, we list a series of simple questions designed to help you determine which strategies are the low-effort, high-return opportunities. You’ll need some data in order to answer the questions, but it’s a pretty easy exercise to start moving down the path toward a cleaner, lower-cost freight program.

Here’s a small sample from just one of the green freight diagnostic sections, "Get the most out of every move." As you can see, it explains the opportunity and allows you to measure the potential impact at a high level.

QuestionOpportunityPotential Benefit
Can your customers be flexible about arrival dates to enable freight consolidation?With a transportation management system or TMS, companies can identify opportunities to hold orders for consolidation. Where feasible, and with the right incentives, companies can then send one larger shipment to customers instead of sending two smaller ones.Reduction of product shipping volume by up to 30 percent.
Have you recently analyzed opportunities for balancing high density and low density products?If no, explore how you might be able to better balance weight and cube constraints. Options include matching internal freight or co-loading with a company with a similar need and transportation lanes.20-30 percent net reduction in process and resource costs.
Can you side load your pallets 90 degrees when loading them on the truck?Explore the feasibility of side loading pallets to enable the loading of more cargo per truck. This will be feasible only for fleets that cube out, but do not weigh-out. This approach will require changes to pallet construction and loading.8-15 percent increase in truck productivity.

That’s just a small sampling.  Each of the five sections provides a comprehensive diagnostic assessment tool. Download the Green Freight Handbook to access the tool.

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