CLIMATE CHANGE impacts include rapid melting of glaciers, global temperature spikes, frequent flash floods, intensification of hurricanes and cyclones are among those events triggered by increased carbon emissions that could reach levels reviews.
One activity largely responsible for these negative impacts is logistics. Even though the transport and logistics industry forms the backbone of any economy, it is also the main contributor to increasing carbon emissions, and therefore to climate change.
Soham Chokshi, Founder and Managing Director of Shipsy, shares his knowledge and explains how reducing miles travelled, optimizing delivery routes and avoiding traffic jams could reduce harmful CO2 emissions by 37 million metric tons per year.
The Manila Times (TMT): How has the resumption of economic activities in the post-pandemic period in the Philippines contributed to the country’s negative contributions to global warming? Do you foresee a further increase in the contribution from the Philippines in the wake of rising oil prices?
Soham Chokshi (SCh): The country recorded a decline in real GDP of 9.6% in 2020, due to the pandemic and subsequent lockdowns. Alarming levels of reduced private consumption, rampant unemployment and paralysis of the supply chain have taken the country by storm. Thus, the resumption of economic activities which gradually began in the first quarter of 2021 is a sign of immense relief for the nation.
When it comes to sustainability, the Philippines holds an interesting position in the global context. Here’s why. Despite being considered a “minor” contributor to climate change, the country’s GHG emissions rank among the top 25% of all developing economies. It’s not that. Its emissions are expected to increase significantly over the next few decades. Given that the country is extremely vulnerable to climate-related disasters, it is even more essential that the government implements strong policies that will incentivize supply chain actors to invest more in sustainability. Therefore, although many people have described as “ambitious” the government’s decision to revise its target of reducing GHG emissions by 75% by 2030 from 70% previously, it is an important step in the good direction.
From a supply chain perspective, a spike in fuel prices has a definite impact on the cost of logistics operations. But you can’t just stop operations for that reason. The solution here is to build supply chain strategies around sustainability by leveraging modern logistics management tools. For example, using technology, we could intelligently balance the use of electric vehicles and gasoline and diesel vehicles.
TMT: With this in mind, how could the local heavy transport industry (trucking, shipping and aviation) reduce its contribution to global warming despite its dependence on carbon-emitting oil? What kinds of new technologies could help the transportation industry reduce its contribution to global warming?
SCh: There are so many things that could be done, and you don’t have to go broke to reduce the carbon footprint. When it comes to sustainability, the simplest things can have a huge long-term impact. Empowering the trucking industry with smart logistics management tools that help reduce mileage, eliminate empty miles, increase capacity, improve trip productivity, stop truck idling and much more contributes greatly to reducing emissions. For example, AI and ML-based routing solutions could reduce distance traveled by 5%, increase vehicle capacity utilization by 31%, and reduce trip volumes by 6%.
When it comes to air and sea freight transportation today, we have tools that could help supply chain players better understand the emissions their shipments would cause before they even start shipping. Things like these make a winning difference in building sustainable supply chains.
TMT: What does Shipsy have to offer in this respect? Would your offerings be affordable for most businesses?
SCh: Shipsy is a highly modular logistics management platform in SaaS mode, allowing easy and rapid adoption for companies of different sizes depending on their maturity. As a plug-and-play solution, it eliminates the need to “break down and replace” existing IT infrastructure. Our seamless and smart API integrations significantly reduce the IT development effort required from the customer. With Shipsy, customers could be online in days, not weeks. We are not just technology providers, but partners in our customers’ growth story.
Plus, our route planning and optimization engine helps businesses reduce distance traveled by 5% and trip volumes by 6%. It also dramatically increases first attempt delivery success rates. These elements combined result in lower fuel consumption and lower carbon emissions. Our latest innovation around sustainability dashboards gives companies insight into their carbon footprint throughout the lifecycle of their shipments.