Given Australia’s position on the world map, it is only to be expected that logistics is one of the country’s primary industries. From agricultural produce to raw minerals and e-commerce freight forwarding, local companies provide a wide range of services. Unfortunately, despite its importance to the country’s economy, the transportation sector faces numerous challenges.
Perhaps the industry’s biggest issue is sustainability. With businesses’ heavy reliance on fuel, local authorities are constantly seeking ways to reduce emissions from ships, airplanes, and trucks. Not adhering to applicable laws results in significant penalties and reputational damage, forcing companies to modernize their operations.
Although introducing sustainable practices requires heavy investment, companies can benefit from these initiatives. The new green methodology can lead to cost savings, improved reputation, and enhanced efficiency. As more and more clients prioritize sustainable freight businesses, these practices become vital for surviving in the market.
5 Crucial Sustainable Practices for Australian Transporters
Sustainable shipping requires a multidisciplinary methodology that revolves around infrastructure, fuels, packaging, and digital solutions. Among all the ways your company can improve, the following 5 practices stand out for their importance and practicality.
- Green Fuels and Electrification
The fuel and electricity you use are usually the first two considerations. Ideally, you should source them from non-depletable sources, with minimal processing.
Hydrogen and Biofuels
Back in the day, transportation companies focused on heavy fuel and diesel, both of which are awful for sustainability. While these fuels are still used by companies, Australian transporters are turning more and more to biofuels. In particular, they’re testing products made from algae and agricultural waste, both of which are abundant.
Besides these fuels, transporters are also turning to hydrogen, which has incredible potential for long-distance shipping. The great thing about all these alternatives is that they can reduce emissions by up to 80% compared to traditional alternatives.
Electric Vehicles
Turning to electric vehicles is another major part of the green initiative. EV fleets especially shine during last-mile delivery and other, shorter distances. Furthermore, some of the Australian cities have started using electric ferries for light cargo and passengers. Besides reducing pollution, these vehicles are significantly quieter than their traditional counterparts.
Australian ports are spending money on electricity-powered forklifts, cranes, and other port vehicles, turning away from diesel machinery. While switching to new types of vehicles requires a sizable initial investment, this type of equipment requires much less maintenance. They also excel in terms of pollution.
- Intermodal Transport Solutions
Given Australia’s geographic characteristics and distances between cities, freight transportation is challenging to say the least. Vehicles have to cross enormous distances to reach production centers coming from the county’s ports. Traditionally, companies used road vehicles, which are unfortunately too carbon-intensive.
By focusing on sea and rail solutions, businesses can significantly reduce emissions while increasing efficiency. The data shows that trains have 75% lower emissions compared to road vehicles, while also being able to move larger quantities of goods.
However, to make the switch, transportation companies must introduce intermodal hubs, which are being developed as we speak. These stations should simplify the transfer of products and materials by combining land, sea, and rail transport. All of this would result in much higher efficiency while reducing common delays.
Another great thing about intermodal solutions is that they can reduce traffic congestion, which is especially impactful when products move through large cities. Intermodal hubs also help local governments by reducing wear and tear on Australian road infrastructure.
- Carbon-Neutral Delivery
When looking for a provider, many clients opt for businesses that implement robust carbon-neutrality programs. Basically, these companies are looking to offset their carbon emission by investing money back into reforestation, renewable energy, and carbon capture.
Introducing these programs has become vital for carriers, especially when it comes to e-commerce services. Customers can choose carbon-neutral shipping when paying for transport, which allows them to make an environmentally sound choice.
Some businesses go out of their way to bear the cost of emissions themselves. They can highlight this practice on their website and through marketing material, positioning their brand as eco-friendly. This practice can make all the difference in large, highly competitive markets.
- Digital Logistics
As in many other industries, digital solutions, specifically artificial intelligence, have transformed logistics. By using advanced software, companies can improve their transportation efficiency, which would eventually lead to lower emissions. AI can analyze weather and road conditions, and pair them up with delivery schedules to recommend optimal routing.
Using predictive analytics can make all the difference in consolidating shipments, ensuring that space on your trucks and ships is fully utilized. Eventually, filling up your vehicles with as many goods as possible will reduce emissions per unit shipped.
Another major innovation is real-time tracking. Customers and freight companies can monitor the position of vehicles and the estimated time to the destination. This would eventually reduce the number of trips required, enhance customer experience, and lower emissions.
- Green Packaging
When talking about transportation industry sustainability, many companies overlook packaging. Nevertheless, using sustainable materials is in line with all other environmental policies. Packaging that heavily relies on plastic is now outdated, leaving a major carbon footprint.
As a way to address the issue, businesses have started introducing FSC-certified carbon boxes that adhere to zero-deforestation and other community and environmental policies. Some carriers also started using biodegradable fillers and water-activated paper tape.
Besides improving daily operations, these policies showcase a brand’s commitment to eco-friendly solutions. Customers can easily determine if a packaging is according to the best sustainability policies, remembering that a transporter is a responsible enterprise.
The Future of Sustainability
Although it is hard to introduce all these policies overnight, your company should strive toward them. Besides reducing your environmental impact, most of this technology will also improve your bottom line. They give you a strategic advantage over late adopters, potentially eliminating some of the market’s biggest competitors.
