The main aim of green logistics is to minimise resource consumption and waste across supply chains, covering road, maritime, and air transport. Important measures in its implementation include route optimisation, load consolidation, and the deployment of energy-efficient vehicles, writes Darshan Ghodawat, CEO & Managing Director, AVA Global Logistics Pvt. Ltd.
The shift to sustainability for the logistics sector is a critical requirement in global commerce especially for an industry grappling with carbon emissions, resource consumption, and waste management. Adopting green logistics has now become a strategic necessity rather than an ethical choice for the sector. Apart from reducing overall environmental impact, the implementation of sustainable practices has resulted in better operational efficiency, brought down costs, and helped firms face competition in an eco-conscious market.
The main aim of green logistics is to minimise resource consumption and waste across supply chains, covering road, maritime, and air transport. Important measures in its implementation include route optimisation, load consolidation, and the deployment of energy-efficient vehicles. Besides a reduced ecological footprint, these strategies bring down the fuel bill while ensuring that environmental norms are complied with, and legal penalties are avoided fostering goodwill.
The time to switch to sustainable logistics could never be any better. The Paris Agreement has tasked companies with reducing carbon emissions by 55 percent by 2030 compared to 1990 levels. This comes at a time when the global logistics market is projected to grow to USD 7.9 trillion by 2030, with the country’s share expanding at a remarkable compound annual growth rate of 15.5 percent—one of the highest globally. This rapid growth highlights the need for integrating sustainable practices to manage environmental impacts effectively. For India, which has set its eyes on doubling its logistics market size, the challenge is two-pronged and lies in meeting increased demand while adhering to stringent environmental standards.
The role of technology in this transformation of the logistics sector is pivotal. Real-time tracking, route optimisation, and load management have only become possible due to Internet of Things (IoT) devices and artificial intelligence (AI). Their use now offers a significant reduction in fuel consumption and emissions. AI-powered route planning has brought about efficient cargo movement, while IoT devices help monitor container utilisation, offering support to strategies like triangulation.
Using an approach like triangulation helps minimise empty container trips by coordinating their movement for new cargo loads, reducing emissions and operational costs. A European Commission study found that optimising container movements through such methods could bring down emissions by up to 30 percent.
The use of alternative fuels such as biodiesel, hydrogen, and electricity also hold promise. These energy sources, alongside innovations like electric powered trucks and energy-efficient maritime shipping vessels, are what logistics needs to turn into a greener industry. In inter-city logistics, load pooling and night-time deliveries reduce congestion and fuel use, beefing up efficiency and improving reliability.
Opportunities for sustainability also exist in the warehousing and distribution space. It makes sense to go sustainable in practice as energy-efficient designs, solar-powered facilities, and automated storage systems help reduce energy consumption and greenhouse gas emissions. Among waste management practices, the use of recyclable and biodegradable packaging support eco-friendly operations and align logistics companies with global sustainability goals offer cost advantages, making businesses better prepared in dealing with fluctuating resource prices.
Shipping has a special place in global trade. From adopting energy-efficient engines and low-carbon fuels to modernising port operations, it is undergoing a green revolution. Strategies such as slow steaming, optimised routing, and port electrification are taking it toward carbon neutrality. The need for governments and private entities to invest in infrastructure that supports the transition to low-carbon logistics is of immense importance. Green hydrogen production facilities, battery charging stations, and alternative fuel supply chains should be financed through public-private partnerships and green bonds. Opting for blended finance models, offering a mix of grants and loans with green bonds, can mitigate risks and attract investors to these capital-intensive projects.
The benefits of going green are way beyond being environmental responsible and companies gain a competitive edge by appealing to eco-conscious consumers and investors when they are sustainable in their operations. A study by the Indian Institute of Management Bangalore found that green logistics could save firms up to 10 percent on logistics costs. Furthermore, sustainable logistics enhances supply chain resilience, a critical factor highlighted during the recent global health crisis.
In all, sustainability in logistics is not just about merely reducing emissions—it is a pathway to adopting operational excellence, cost efficiency, and long-term growth. By integrating innovative technologies, alternative fuels, and green practices, logistics firms can work with their economic goals with environmental stewardship. This dual approach positions logistic firms as leaders in global sustainability efforts while ensuring its continued relevance in an increasingly demanding marketplace is noted.