Emergence of multimodal coordination allows forwarders to design optimised, carbon-efficient routes. This shift in focus comes as governments implement stricter environmental regulations and companies face more pressure from environmentally aware consumers and investors, says Cyrus Katgara, Partner, Jeena & Co.
The impact of supply chains on carbon emissions, accounting for 60 per cent of the total and an average of 80 per cent of a firm’s greenhouse gas (GHG) emissions, highlights the critical role and opportunity for freight forwarders in combating climate change.
Often unseen yet vital to trade, freight forwarders are now recognised for their influence in achieving carbon reduction targets. This shift in focus comes as the governments implement astricter environmental regulations and companies face more pressure from environmentally aware consumers and investors, placing the forwarding sector at a pivotal juncture. This transition extends beyond mere compliance or the publication of sustainability reports. It involves a fundamental reshaping of transportation—how goods are moved and our responsibility towards environcarbon mental preservation. For freight forwarders, this means utilising their position within multimodal supply chains to drive meaningful change.
Freight transportation relied on road transport, constituting 71 per cent of the total, leading to logistics costs of around 13 to 14 per cent of GDP. The integration of more cost-effective rail and waterways has begun to reduce this dependence. This shift offers environmental benefits, with potential emission reductions of 15 to 20 per cent.
