SUSTAINABILITY
T
he recent Suez Canal crisis has attracted rare public attention on the carbon footprint of the international shipping sector. The sheer size and plight of the Ever Given container ship could well encourage consumers and their governments to finally steer shipping onto a more sustainable course. And with COP 26, the UN’s Climate Change Conference, taking place in November 2021, legislators will be edging closer to including air and sea shipping emissions in their climate action plans. For growth-hungry e-commerce companies in North America, it will pay to invest now in greener crossborder supply chain strategies, and to clearly communicate their efforts in ESG reporting. Shipping to overseas customers is a competitive opportunity that cannot be ignored by brands selling online.
O
CROSS-BORDER E-COMMERCE IS BOOMING The cross-border e-commerce market is growing at double the rate of domestic e-commerce, according to Accenture, driven by consumers seeking brands or products unavailable in their home country, and more competitive pricing. How can North American e-commerce companies mitigate harmful emissions while still pursuing growth in markets such as China, Europe, and the Middle East? The good news is that much has already been achieved. North American retailers have worked tirelessly in the last decade to reduce packaging waste, to find the most efficient shipping and delivery routes, to invest in electric vehicles, and to minimize returns. Meanwhile, postal operators and third-party logistics providers (3PLs) are implementing
innovative tech solutions to deal with both increased demand and the need to become carbon neutral. Together, we are getting greener. Here are four ways in which carbon emissions can be reduced from the international e-commerce supply chain: 1. Smarter international shipping strategy Academic research into global logistics coordination and practices have led to the adoption of ideas such as Slow Steaming. This involves operating container ships below their maximum speed, thereby cutting fuel usage. Research by the Tyndall Center for Climate Change in the UK found that if you slow a fleet down by 17 percent, you can save 25 percent of emissions from that fleet. Leading logistics companies are now evaluating shipping routes for
North America Outlook issue 03 | 15
