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The Importance of Energy Transition and Sustainability in the Logistics and Supply Chain Industry

Published

12 mois ago

18 décembre 2024

The Importance Of Energy Transition And Sustainability In The Logistics And Supply Chain Industry

The logistics and supply chain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. However, the sector’s reliance on fossil fuels and resource-intensive practices poses significant challenges. The transition to renewable energy and the adoption of sustainable practices are now essential for reducing environmental impact, ensuring regulatory compliance, and maintaining competitiveness.

Addressing Energy Challenges in Logistics

The logistics sector is a significant contributor to greenhouse gas emissions. Road freight alone accounts for approximately 7% of global CO2 emissions, with maritime and air transport further amplifying the environmental burden. Reliance on fossil fuels creates additional challenges:

• Economic Vulnerability: Volatile oil prices and geopolitical conflicts increase financial risks. Businesses face heightened uncertainty in managing costs and securing stable energy supplies. Reducing dependency on fossil fuels can mitigate these risks and improve operational predictability.

• Regulatory Demands: Governments worldwide are enforcing stricter emissions standards and introducing carbon taxation schemes, pressuring companies to adapt. Non-compliance can result in financial penalties, reputational damage, and restricted market access. Proactively adopting cleaner energy sources ensures alignment with these evolving regulations.

The industry’s dependency on traditional energy sources necessitates an urgent shift toward cleaner alternatives.

Transitioning to Renewable Energy

The shift from fossil fuels to renewable energy is vital for mitigating the environmental impact of logistics. Key strategies include:

• Electrification of Transport: The use of electric vehicles (EVs) for freight and last-mile delivery reduces emissions and operational costs. Transitioning to EVs can also benefit from government subsidies and tax incentives, accelerating adoption. Companies like DHL and Amazon are already setting benchmarks by integrating EVs into their logistics operations.

• Renewable Energy for Facilities: Warehouses and distribution centers can integrate solar panels and wind turbines to lower energy costs and carbon footprints. Facilities powered by renewable energy also attract environmentally conscious clients and stakeholders. Retrofitting existing infrastructure with energy-efficient technologies further enhances sustainability efforts.

• Adoption of Sustainable Fuels: For aviation and maritime logistics, sustainable fuels like biofuels and hydrogen provide feasible alternatives when electrification is impractical. These fuels significantly reduce greenhouse gas emissions compared to conventional fossil fuels. Investment in research and partnerships is crucial for scaling these solutions industry-wide.

These measures enhance energy security and align with consumer and regulatory expectations for environmentally conscious practices.

Incorporating Sustainability in Supply Chains

Sustainability in supply chains extends beyond energy use, addressing broader environmental and social impacts. Critical practices include:

• Circular Supply Chains: Designing systems that minimize waste and emphasize recycling and reuse. Companies can extend the lifecycle of products by reclaiming materials at the end of use. This approach also reduces reliance on virgin raw materials, conserving natural resources.

• Green Logistics: Optimizing transportation routes, consolidating shipments, and employing energy-efficient vehicles to reduce emissions. These initiatives also lead to cost savings by maximizing load capacity and reducing fuel consumption. Advanced route optimization tools further support these goals.

• Sustainable Packaging: Utilizing biodegradable and recyclable materials to minimize environmental harm. Reducing packaging volume and weight also decreases transportation emissions. Collaborating with suppliers to standardize sustainable packaging ensures consistency across the supply chain.

• Ethical Sourcing: Ensuring suppliers adhere to responsible labor and environmental standards, promoting accountability throughout the supply chain. Regular audits and certifications help verify compliance and mitigate risks. Transparent sourcing practices build trust among consumers and investors.

Leveraging Technology for Sustainability

Technology is a key enabler of energy transition and sustainability in logistics. Innovative tools provide actionable insights and improve operational efficiency

• Artificial Intelligence (AI): AI systems optimize routing and demand forecasting, reducing energy consumption and empty miles. Predictive analytics helps logistics companies anticipate disruptions and adapt proactively. AI-powered warehouse management improves inventory flow and reduces waste.

• Blockchain for Transparency: Blockchain enhances traceability, ensuring ethical sourcing and verifying compliance with sustainability standards. Immutable records enable accountability throughout the supply chain. Blockchain also facilitates collaboration by sharing verified data across stakeholders.

• Internet of Things (IoT): IoT devices monitor vehicle performance and energy usage, enabling real-time optimization. These devices provide actionable data to improve fuel efficiency and reduce maintenance costs. IoT sensors also track environmental conditions, ensuring product quality during transit.

• Digital Twins: Virtual models of supply chain networks identify inefficiencies and predict the impact of sustainability measures. By simulating various scenarios, businesses can test strategies before implementation. This technology supports long-term planning by visualizing the effects of energy and resource optimization.

These technologies streamline operations while supporting compliance with environmental and social regulations.

Benefits of Sustainable Practices

Adopting sustainable practices in logistics yields tangible benefits:

• Regulatory Alignment: Compliance with emissions standards and avoidance of penalties under carbon taxation schemes. Staying ahead of regulatory requirements enhances operational flexibility and reduces legal risks. Consistent compliance improves relationships with regulators and partners.

• Operational Efficiency: Improved resource utilization and reduced fuel costs through energy-efficient practices. These improvements contribute to higher profit margins and reduced environmental impact. Investing in efficiency measures also positions companies as industry leaders.

• Enhanced Resilience: Diversifying energy sources and adopting sustainable practices increase adaptability to economic and environmental challenges. Resilient supply chains recover more quickly from disruptions, ensuring business continuity. Building resilience enhances stakeholder confidence and long-term viability.

• Market Differentiation: Meeting consumer and investor demand for sustainability strengthens brand reputation and market position. Companies that lead in sustainability attract loyal customers and top-tier talent. Differentiation also opens opportunities in premium market segments.

Overcoming Challenges in Energy Transition

While the advantages are clear, the transition to renewable energy and sustainable practices presents challenges:

• High Initial Costs: Upfront investments in EVs, renewable energy infrastructure, and sustainable packaging require significant capital. Companies must balance short-term expenses with long-term benefits. Public and private funding initiatives can help mitigate financial barriers.

• Technological Constraints: Scalability of advanced batteries and hydrogen fuel systems remains limited in some sectors. Research and development are needed to overcome these limitations and ensure affordability. Industry-wide collaboration accelerates technology adoption and innovation.

• Stakeholder Coordination: Achieving sustainability across global supply chains requires collaboration among diverse parties, including suppliers, governments, and logistics providers. Establishing clear standards and communication channels ensures alignment. Partnerships foster innovation and shared accountability.

Strategies for Implementation

To ensure a successful transition, companies should adopt targeted strategies:

1. Set Measurable Goals: Establish clear targets for emissions reduction, energy efficiency, and sustainability metrics. Regularly review progress to ensure accountability and alignment with objectives. Transparent goal-setting communicates commitment to stakeholders.

2. Invest in Renewable Energy: Transition facilities and operations to renewable energy sources through direct investment or partnerships. Explore power purchase agreements (PPAs) to secure reliable access to clean energy. Renewable energy adoption reduces operational costs over time.

3. Adopt Advanced Technologies: Leverage AI, IoT, and blockchain for real-time optimization and compliance tracking. Implement technologies incrementally to manage costs and training needs. Continuous upgrades ensure systems remain effective and relevant.

4. Collaborate Across Stakeholders: Engage suppliers, regulators, and industry peers to establish shared sustainability standards. Joint initiatives accelerate progress and reduce duplication of efforts. Collaboration creates opportunities for knowledge sharing and innovation.

5. Workforce Training: Equip employees with the skills and knowledge needed to implement sustainable practices effectively. Training programs should address both technical competencies and cultural alignment with sustainability goals. Continuous education supports adaptability to new technologies and regulations.

Conclusion

Energy transition and sustainability are critical imperatives for the logistics and supply chain industry. Reducing dependency on fossil fuels, adopting innovative technologies, and embracing sustainable practices are not optional but necessary for ensuring long-term resilience and competitiveness. Companies that take proactive steps now to align their operations with environmental and regulatory standards will be better positioned to thrive in a dynamic global marketplace. The logistics industry must lead in creating a more sustainable future, balancing economic growth with environmental stewardship and social responsibility.

The post The Importance of Energy Transition and Sustainability in the Logistics and Supply Chain Industry appeared first on Logistics Viewpoints.

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What a Return to the Red Sea Could Mean for the Container Market

Published

3 jours ago

26 novembre 2025

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What a Return to the Red Sea Could Mean for the Container Market

November 26, 2025

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As the fragile but still-in-place Israel-Hamas ceasefire nears the two-month mark, and with the Houthis declaring an end to attacks on passing vessels, there is more and more anticipation that the long-awaited return of container traffic to the Red Sea may be coming soon.

Though Maersk maintains it has not set a date, the Suez Canal Authority stated that Maersk will resume transits in early December. ZIM’s CEO recently stated that a return in the near future is increasingly likely, and CMA CGM is reportedly preparing for a full return in December.

Operational Impact

The shift of most of the 30% of global container volumes that normally transit the Suez Canal away from the Red Sea and around the Cape of Good Hope almost exactly two years ago added seven to ten days and thousands of nautical miles to Asia – Europe journeys and to some Asia – N. America sailings as well.

The return of container traffic to the shorter Suez route will result in the sudden early arrival of these ships, which will mean significant vessel bunching and congestion at already persistently congested European hubs. This congestion will cause delays and absorb capacity which could push container rates up on the affected lanes, and possibly beyond.

The shift back through the Suez Canal may initially keep some of the typically lower volume ports in Europe that have become transhipment centers during the Red Sea crisis, like Barcelona, busy while carriers may omit port calls at some of the congested major hubs. But after the unwind, these ports, as well as African ports that have been used as refuelling stops during the last two years, will see port calls decline.

Carriers have plans for a gradual phase in of the transition back to the Red Sea, with smaller vessels starting to transit first. This approach would still cause vessel bunching, but would be aimed at minimizing the impact of the reset as much as possible.

But some carriers are skeptical that an orderly phase-in will happen, as they expect pressure from customers who will want a return to the shorter route as quickly as possible. Analysis from Sea Intelligence suggests that the more gradual the transition, the less disruptive it will be, while the faster the return the more disruptive it will be during the up to two months it will take for schedules to return to normal.

Ocean expert Lars Jensen also notes that a return during the lead up to Lunar New Year would coincide with an increase in demand, and would put more pressure on ports and rates than if the transition takes place post-LNY when demand is typically weak. With carriers signalling the shift will begin in December and pre-LNY demand probably picking up in mid-January next year, it seems likely the two will coincide.

Implications for Capacity – and Rates

Red Sea diversions were estimated to have absorbed about 9% of global container capacity by keeping ships at sea for longer and – with longer journeys meaning vessels would arrive back at origins days behind schedule – via carriers adding extra vessels to services in order to maintain planned weekly departures.

This drain on capacity caused Asia – Europe rates to more than triple and transpacific rates to more than double in the two months from the time the diversions began to just before Lunar New Year of 2024. And though rates moved up and down along with seasonal changes in demand, the capacity drain pushed East-West rates up to 2024 highs of $8,000 – $10,000/FEU and set a highly elevated floor of $3,000 – $5,000/FEU during low demand periods that year.

But even with Red Sea diversions continuing to absorb capacity in 2025, continued fleet growth through newly built vessels entering the market has meant that the container trade has already become significantly oversupplied.

As such, rates on these lanes – even before the capacity absorbed by diversions has re-entered the market – have consistently been significantly lower than in 2024 even during months when volumes have been stronger, with prices on some lanes reaching 2023 levels for a span in early October. Recent carrier struggles maintaining transpacific GRIs point to this challenge already.

Even with Red Sea diversions continuing and even during months in 2025 with stronger year on year volumes, capacity growth has meant rates in 2025 have been lower than in 2024.

Yes, the initial congestion and delays caused by the transition back to the Suez Canal will at first put upward pressure on rates for Asia-Europe containers and probably to a lesser degree on the transatlantic lanes as well. If the congestion ties up enough capacity or impacts operations at Far East origins, the rate impact could spread to the transpacific as well. As noted above, if the return coincides with the lead-up to LNY, it will have a stronger impact on rates as there will be pressure from the demand side as well.

But once the congestion unwinds and container flows and schedules stabilize the shift will ultimately release more than two million TEU of container capacity back into the market. This surge will put even more downward pressure on rates and increase the challenge of effectively managing capacity for carriers seeking to keep vessels full and rates profitable in 2026.

Judah Levine

Head of Research, Freightos Group

Judah is an experienced market research manager, using data-driven analytics to deliver market-based insights. Judah produces the Freightos Group’s FBX Weekly Freight Update and other research on what’s happening in the industry from shipper behaviors to the latest in logistics technology and digitization.

Weekly Freight Updates

Transpac ocean rates fizzle; Red Sea return coming soon? – November 25, 2025 Update

Weekly Freight Updates

Transpac ocean rates retreat from Nov. GRI, Asia-Europe holds – November 18, 2025 Update

Weekly Freight Updates

Ocean rates climb – for now – on GRIs despite demand slump; Red Sea return coming soon? – November 11, 2025 Update

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The post What a Return to the Red Sea Could Mean for the Container Market appeared first on Freightos.

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Transpac ocean rates fizzle; Red Sea return coming soon? – November 25, 2025 Update

Published

4 jours ago

25 novembre 2025

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Transpac ocean rates fizzle; Red Sea return coming soon? – November 25, 2025 Update

Discover Freightos Enterprise

November 25, 2025

Blog

Weekly highlights

Ocean rates – Freightos Baltic Index

Asia-US West Coast prices (FBX01 Weekly) decreased 32% to $1,903/FEU.

Asia-US East Coast prices (FBX03 Weekly) decreased 8% to $3,443/FEU.

Asia-N. Europe prices (FBX11 Weekly) decreased 1% to $2,457/FEU.

Asia-Mediterranean prices (FBX13 Weekly) increased 6% to $2,998/FEU.

Air rates – Freightos Air index

China – N. America weekly prices decreased 2% to $6.50/kg.

China – N. Europe weekly prices decreased 1% to $3.97/kg.

N. Europe – N. America weekly prices increased 1% to $2.33/kg.

Analysis

Despite higher tariffs since early this year, US retail sales have proved resilient and are expected to grow through the holiday season. The solidifying tariff landscape is nonetheless facing destabilizing forces like recent China-Japan tensions, and the US Supreme Court’s pending decision on the legality of Trump’s IEEPA-based tariffs.

But the White House is signalling it is already taking steps to ensure that a SCOTUS loss will not open a low tariff window. So, if consumer spending remains strong, and the status quo of the trade war holds up, the US could enter a restocking cycle in 2026 as frontloaded inventories wind down. This restocking could mean stronger freight demand than some have anticipated for next year.

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On the freight supply side though, there is more and more discussion of container traffic’s coming return to the Red Sea as the fragile Israel-Hamas ceasefire remains in effect. And while most carriers are not offering a timeline, ZIM’s CEO recently stated that a return in the near future is increasingly likely.

The shift of most of the 30% of global container volumes that normally transit the Suez Canal away from the Red Sea and around the Cape of Good Hope almost exactly two years ago added seven to ten days and thousands of miles to Asia – Europe journeys and to some Asia – N. America sailings as well.

But some carriers are skeptical that an orderly phase-in will happen, as they expect pressure from customers who will want a return to the shorter route as quickly as possible. Analysis from Sea Intelligence suggests that the more gradual the transition, the less disruptive it will be, while the faster it is the more disruptive it will be, and the more pressure it will put on freight rates during the up to two months it will take for schedules to return to normal.

The capacity absorbed through Red Sea diversions pushed East-West rates up to highs of $8,000 – $10,000/FEU in 2024 and set a highly elevated floor of $3,000 – $5,000/FEU during low demand periods that year. But even with Red Sea diversions still in place this year, rates on these lanes have consistently been significantly lower than last year, with prices on some lanes reaching 2023 levels for a span in early October.

The transition back to the Suez Canal – be it more or less chaotic – will ultimately release more than two million TEU of container capacity back into the market. This surge will put even more downward pressure on rates and increase the challenge of effectively managing capacity for carriers seeking to keep vessels full and rates profitable.

The current overcapacity on the East-West lanes is the main reason that carriers’ November transpacific GRIs which had pushed West Coast rates up by $1,000/FEU this month to about $3,000/FEU have now fizzled.

Asia – N. America West Coast prices fell 32% last week to $1,900/FEU with daily rates this week down another $100 so far, but prices remain above the $1,400/FEU low for the year hit in early October. Last week’s vessel fire at the Port of LA does not seem to have had an impact on prices as operations have quickly recovered. Rates to the East Coast fell 8% to $3,400/FEU last week but are at $3,000/FEU so far this week, about even with levels in early October before these set of GRI introductions.

Meanwhile, October and November’s GRIs on Asia-Europe lanes have stuck, with rates to Europe and the Mediterranean both 40% higher than in early October at $2,500/FEU and $3,000/FEU respectively. These rate gains may be surviving on aggressive blanked sailings on these lanes.

Carriers are planning additional GRIs for December aiming for the $3k-$4k/FEU level as they continue to reduce capacity – with an announced labor strike in Belgium likely to help absorb some supply – but there are signs that these increases may not take.

In air cargo, peak season demand is driving rates up and should keep doing so for the next couple weeks. Freightos Air Index data show ex-China rates remaining strong at about $6.50/kg to N. America and $4.00/kg to Europe last week. Demand out of S. East Asia has grown significantly during this year’s trade war, with rates also elevated on these lanes at $5.40/kg to the US and $3.50/kg to Europe.

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Judah Levine

Head of Research, Freightos Group

Weekly Freight Updates

Transpac ocean rates retreat from Nov. GRI, Asia-Europe holds – November 18, 2025 Update

Weekly Freight Updates

Ocean rates climb – for now – on GRIs despite demand slump; Red Sea return coming soon? – November 11, 2025 Update

Weekly Freight Updates

China-US agreement unlikely to spur freight surge – November 5, 2025 Update

Put the Data in Data-Backed Decision Making

Freightos Terminal helps tens of thousands of freight pros stay informed across all their ports and lanes

Book a Demo

The post Transpac ocean rates fizzle; Red Sea return coming soon? – November 25, 2025 Update appeared first on Freightos.

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How AI Is Driving the Future of Industrial Operations and the Supply Chain

Published

5 jours ago

24 novembre 2025

How Ai Is Driving The Future Of Industrial Operations And The Supply Chain

ARC Industry Leadership Forum • Orlando, Florida
February 9–12, 2026 • Renaissance Orlando at SeaWorld

Artificial intelligence is reshaping how industrial organizations run their operations and supply chains. The shift is real. The early experiments are gone. Today, companies are redesigning their planning, logistics, reliability, sourcing, and production workflows around systems that can think, react, and coordinate.

At ARC Advisory Group, we’re seeing this change accelerate every quarter. AI is moving from a standalone project to the connective tissue between operational systems. It’s improving how energy is consumed, how materials flow, how assets behave, and how teams respond to uncertainty.

This February, leaders from across the world will gather in Orlando to break down where AI is creating value and what comes next.

Event Details
Renaissance Orlando at SeaWorld
6677 Sea Harbor Drive, Orlando, FL 32821
February 9–12, 2026
Event link: https://www.arcweb.com/events/arc-industry-leadership-forum-orlando

More than 200 colleagues are already registered, including Conrad Hanf and a broad mix of executives, operations leaders, and technologists.

Why AI Matters Right Now

AI gives industrial organizations three capabilities they’ve never had before.

Real-time awareness.
Factories, yards, pipelines, fleets, and distribution nodes are producing enormous amounts of data. AI helps cut through that noise. It identifies what matters, when it matters, and why. The result is faster decisions and fewer surprises.

Coordination across functions.
Production affects logistics. Maintenance affects throughput. Sourcing affects lead time. AI lets these domains share context and act together instead of waiting for a meeting or a spreadsheet adjustment. Decisions that once took a day now happen instantly.

Pattern recognition at scale.
AI sees the earliest signals of asset degradation, demand shifts, port delays, or supply risk. It doesn’t wait for a problem to become a crisis. It alerts teams early and recommends actions with enough lead time to matter.

What Leaders Are Focusing On

Across our research and briefings, the same themes keep rising to the surface.

AI-driven maintenance and reliability.
Predictive models are becoming the default. They diagnose root causes, calculate the impact of failure, and help schedule work when it makes operational sense.

Modern planning and scheduling.
Forecasts now incorporate external signals, real-time plant conditions, and multi-site interactions. Planners are starting to work with continuously updated recommendations instead of static plans.

Autonomous supply chain operations.
AI agents are beginning to negotiate with carriers, re-route shipments, rebalance inventory, and adjust sourcing strategies. This isn’t sci-fi. It’s quietly happening in live networks.

Graph intelligence.
Industrial networks are connected by thousands of relationships. Knowledge-graph models help organizations understand those connections and trace how one event cascades across an entire operation.

Data discipline.
AI’s performance depends on clean, harmonized data across ERP, MES, historians, WMS, TMS, and supplier systems. Many companies are now tackling this foundational work head-on.

Human and AI collaboration.
The most successful organizations aren’t automating people out. They’re giving operators, planners, and engineers AI tools that amplify experience and judgment.

Why Attend the ARC Industry Leadership Forum

The Forum is where these shifts come together. Attendees will see:

• Real-world case studies from global manufacturers, logistics leaders, and utilities
• Demonstrations of AI-enabled control towers and reliability platforms
• Deep-dive sessions on agent-based systems, context management, RAG assistants, and graph reasoning
• Roundtable conversations with peers facing the same operational pressures
• Practical discussions on governance, cybersecurity, workforce roles, and measurable ROI

This event is built for leaders who want clarity, validation, and a realistic roadmap for scaling AI across the industrial value chain.

A Turning Point for Industrial Operations

AI is changing the fundamentals of how materials move, how assets perform, how demand is met, and how decisions get made. The organizations that learn to use this intelligence well will operate with more resilience, more predictability, and less friction.

The ARC Industry Leadership Forum is the best place to understand what this looks like in practice and how to prepare your organization for it.

Join Us in Orlando

If your role touches operations, supply chain, engineering, logistics, maintenance, or industrial strategy, this gathering will be well worth your time.

Reserve your seat:
https://www.arcweb.com/events/arc-industry-leadership-forum-orlando

We hope to see you there.

The post How AI Is Driving the Future of Industrial Operations and the Supply Chain appeared first on Logistics Viewpoints.