Analyst Insight: The global economy is intricately linked to the efficiency, reliability and resilience of maritime shipping. This sector, vital for international trade, is also a significant contributor to global emissions. A data- and technology-driven solution will minimize the industry’s carbon footprint, and bring it into line with global sustainability goals.

Despite the critical role of maritime transport in the global supply chain, its environmental impact often receives insufficient attention in climate action discussions. It accounts for about 3% of global emissions — comparable to a major industrial nation’s output. 

Current trends suggest a challenging path ahead. Although the shipping industry, along with its global partners, has committed to enhancing sustainability, emission levels are projected to rise dramatically — potentially increasing by up to 130% by 2050. This projection starkly contrasts with the ambitions of the Paris Agreement, which targets achieving climate neutrality within the same timeframe.

To align the shipping industry with global sustainability goals, a broader adoption of data-driven and technologically advanced solutions is needed. By leveraging real-time tracking and emissions monitoring, the industry can not only minimize its carbon footprint — it can also contribute to a more sustainable future. 

Shipping’s Multifaceted Impact

As the arteries of global trade, supply chains facilitate the flow of essential goods — ranging from food to pharmaceuticals — to people all around the world. However, these essential goods come with a significant environmental cost.

Simply put, shipping can be a dirty business — in the environmental sense. There’s a reason industry groups like The International Maritime Organization (IMO) have come together with global leaders to set ambitious targets to reduce carbon intensity. Freight transportation makes up 8% of global greenhouse gas emissions, including 40% of all carbon dioxide emissions in the U.S. alone.

Yet, immediate action isn’t all that straightforward. The shipping industry is a vital economic engine, supporting millions of jobs worldwide and enabling the flow of goods across borders. While leading carriers are moving ahead with net-zero ambitions, the financial implications of such environmental commitments cannot be overlooked. The shift toward sustainability often requires substantial investment in green technologies — an obstacle for companies lacking the necessary resources.

In this complex landscape, enhancing shipment visibility has emerged as a cost-effective and impactful solution. This approach, requiring minimal upfront investment, offers significant environmental advantages. By gaining detailed insights into shipping operations — such as traceability, dwell times, empty miles traveled and cargo-damaging events — companies can identify inefficiencies and opportunities for reducing waste, fuel and energy consumption. This strategy demonstrates how targeted, technology-enabled interventions can contribute to the industry's sustainability objectives while acknowledging economic considerations.

Visibility as a Foundational Element

Achieving sustainability in the shipping sector hinges on enhancing visibility into the environmental impact of shipping operations. This clarity is essential for making decisions that not only aim to reduce emissions, but also optimize supply chain and shipping efficiency.

Historically, the complexity of global supply chains, compounded by the diversity of stakeholders involved, has made it challenging to gather and analyze data effectively. The disparity in systems, processes and data standards among suppliers, manufacturers, distributors and logistics service providers often results in fragmented information — which obstructs comprehensive visibility for supply chain and transportation leaders.

Tools such as GPS tracking, internet of things sensors, and other connected devices now provide real-time data on the status and conditions of shipments. Implementing digital tools enables the monitoring of critical metrics, including the distance that shipments travel, dwell times at various checkpoints, and the exposure of cargo to potentially harmful conditions. Armed with this information, supply chain managers can swiftly address inefficiencies and environmental concerns — significantly reducing the ecological footprint and associated costs.

In a broader context, the future of shipment visibility technology looks promising, with innovations focused on sustainability. Solutions like non-lithium, lightweight trackers boast the dual benefits of being reusable and easily renewed. This shift not only minimizes reliance on single-use technologies, but also supports a circular economy model within the logistics sector. 

The pursuit of reduced Scope 3 greenhouse gas emissions within supply chains necessitates a proactive approach to managing unforeseen events, such as the recent collapse of Baltimore’s Francis Scott Key Bridge and the ongoing conflict in the Red Sea, which necessitated the re-routing of nearly 30% of all global container traffic. Advanced tracking systems that offer comprehensive data visibility and real-time alerts are critical for minimizing transit times and, by extension, carbon emissions.

Such technological advances support the global movement towards sustainability, enabling companies to trace their shipments meticulously, streamline operations and, ultimately, contribute to a more sustainable shipping industry. This commitment to environmental responsibility not only aligns with the demands of consumers, customers, investors and regulatory bodies, it also sets a new standard for the industry — illustrating that timely, efficien, and sustainable shipment delivery is not just an ideal but an achievable reality.

Visibility in Action

To truly understand how shipment visibility can shape sustainability, it’s important to know the degree to which shipping mileage is going under-reported, then utilize digital systems to spur enhanced tracking and emissions reduction.

Recent shipment tracking data shows that there is a substantial opportunity for supply chain optimization, specifically in reducing empty mile —trips made by vehicles without carrying cargo. Current research indicates a significant portion of transport capacity is underutilized, with every third container and 40% of land trucks moving empty, contributing to unnecessary fuel consumption and carbon emissions, and costing the industry more than $60 billion per year.

By embracing the technologies and strategies that facilitate real-time, end-to-end visibility, companies can identify inefficiencies, optimize routes and significantly cut down on unnecessary miles  and emissions. This approach not only advances the sustainability agenda, it contributes to a more economically efficient and environmentally responsible global supply chain. Through the use of data and innovative tracking technology, the shipping industry can make significant strides toward a more sustainable future at a nominal relative cost, aligning operational practices with the urgent need for environmental stewardship.