By Bemmy  Lim.    Photo：Mochammad  Algi 

Every sector in the global economy plays an important part in reducing carbon footprints and curbing greenhouse gas emissions, including the supply chain. Last-mile delivery is a large contributor as consumer demands for fast, convenient delivery continue to grow.

Reducing carbon emissions and relying on burning fossil fuels to power most of today's last mile deliveries is not going to be easy, and it will be a test to keep up with the delivery movements that demand trade and reduce carbon emissions, but There are three key steps retailers can take to make the last mile more sustainable.

1. Measure metrics to increase transparency and improve efficiency

Most delivery trucks still run on gas, a fossil fuel that contributes to a carbon footprint. An average truck’s carbon footprint is 223 tons of carbon dioxide per year. These trucks travel back and forth between the warehouse or retail locations before final delivery to customers. The amount of fossil fuels burned every day will be a huge number.

2. Identify how to reduce emissions

By having a quantitative awareness of fossil fuel and carbon usage, retailers can take stock of their current sustainability initiatives and further improve their last-mile delivery processes.

For example, single-product deliveries have the greatest negative impact on carbon emissions, which is a likely scenario. One way the business can address this is by consolidating nearby deliveries to reduce overall mileage. For instance, retailers can consolidate and send one delivery truck for multiple customers who live in a 5-mile radius. Or, if a customer purchases multiple items, the retailer can combine the customer’s products into one swift delivery. 

3. Offset emissions through specific initiatives

Within the last mile and more broadly throughout the supply chain, retailers can offset carbon emissions by identifying and implementing small, or large, sustainability initiatives. Smaller-scale initiatives include office adjustments, such as using LED bulbs, implementing recycling or opting to use only paperless documents.

Eventually, committed retailers can work their way up to larger-scale initiatives, such as utilizing alternative energy sources for deliveries. There's a growing and recognizable importance of switching to a fleet of electric or hybrid vehicles. costs, more ease in charging and managing the fleet, and creating a positive environmental impact.

The last mile delivery is very needed in various countries, so the implementation of this measure can effectively reduce the transportation cost of customers, that is, the substitution of various energy sources reduces the fuel consumption. Not only that. It also enables retailers to retain customers by raising awareness through this measure, empowering retailers to contribute to broader sustainability efforts.

The below is the feedback from China and Southeast Asia branches.

Shenzhen: 

Shenzhen Shipping: The market is weak after the Spring Festival, and the price is still falling.

Shenzhen Air Freight: The volume of goods in the market after the holiday is not much, and the shipping company has reduced some flights at present, and the price has dropped.

The Shenzhen-Hong Kong cross-border cargo transportation policy is further liberalized, the ferry mode is terminated, and the "point-to-point" transportation mode is adopted. Cross-border vehicles need to scan the cross-border security code at the five port connection points to open the entry and exit.

The cross-border security number is reserved by the operation point or the cross-border driver. There is no cross-border security quota limit, and you can apply for as many as you need.

However, the factory have not yet been restored for their yard, so it is still impossible to arrange transportation between China and Hong Kong. The policy is still being gradually implemented, waiting for the real full recovery of China-Hong Kong business.

Ningbo:

Many factories have not yet resume to work , the volume of goods on the market is small, and the price of the American line has dropped.

Beilun port area, fleet and warehouse are in normal operation.

Shanghai:

Air freight:

This week is the first week after the long holiday, and prices on all routes are down.

Normal delivery this week.

Shipping:

After the Spring Festival, the market is sluggish, with surplus positions and insufficient cargo volume.

Tianjin:

Some factories have not yet resumed work, and the shipping space is sufficient, and the sea freight has been slightly reduced.

In addition, the goods shipped before and during the festival are seriously understaffed and transit ports are under pressure. Especially the South American route is highlighted.

Vietnam:

PSA Group - Singapore (the world's number 3 port operator) invests and operates SP-PSA port in Ba Ria - Vung Tau province.

APMT Group - Denmark (the world's No. 2 port operator) ) invest and operate CMIT Port in Ba Ria - Vung Tau province;

Hutchison Port Holding Group - Hong Kong (the world's No. 1 seaport operator) invests in SITV port in Ba Ria - Vung Tau province... 

Large shipping lines also participate in investing and exploiting many ports in Ba Ria - Vung Tau, Vietnam such as Mitsui O.S.K line (Japan), Wanhai Lines (China Taiwan) invest and operate international container terminal Tan Cang - Cai Mep; MOL, NYK shipping lines invest in Lach Huyen port (Hai Phong)

Thailand:

Sony group plans to set up a semiconductor plant in Thailand under an investment budget of about 10 billion yen (2,566 million baht), and the plan will begin operating in March 2025 and will be the first semiconductor factory outside of Japan .  Sony is a major player in the market.  It occupies more than half of share. This plant will make a type of image sensor that used in autonomous vehicles. Once built, Sony scale of production in Thailand will increases by 70%.   The finish product will be exported globally.

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