Logistics Decarbonisation Challenges
The logistics sector is under pressure to decarbonise operations as the net zero goal is increasingly adopted by Governments worldwide. Innovations and new technologies have elevated alternative fuel vehicles to genuine contenders to the traditional fossil fuel-powered internal combustion engine. Consequently, alternative fuel vehicles have become a prime contender for decarbonising logistics. However, decarbonising operations is not without its challenges. Failure to understand, prepare and address these challenges could negatively impact the speed at which the logistics sector decarbonises.
To explore the logistics decarbonisation challenges, risks, and opportunities this paper examines five technical, economic and environmental factors identified in evidence being produced by industry and academic research. The five aspects are:
- Alternative fuel vehicles performance
- Alternative fuels delivery
- Renewable energy availability
- Return on investment
- Emissions modelling and reporting.
Truck Driver Shortages and Landside Port Congestion
Many of the world’s biggest economies are experiencing major supply chain challenges because of the convergence of several factors: worker absenteeism due to the COVID-related restrictions, incidents like the Ever Given Suez Canal obstruction and growing electronic commerce have all impacted on timely delivery of many goods and services.
These disruptions, however, are only part of two broader longer-term challenges facing global supply chains. The first challenge is the significant projected shortage of qualified truck drivers that had already started to create goods, fuel and food supply disruptions for business and the general population in several countries 1–3. The second is the global experience of landside port congestion that has emerged partly due to ever greater reliance on mega-ships and mega-ports and have directly contributed to significant landside transport inefficiencies.
Supply Chains for Future Transport Fuels and Energy Sources in Australia
The increased adoption of alternative fuels in road transport, such as electricity for battery electric vehicles (BEV) and hydrogen for fuel cell electric vehicles (FCEV) has improved the prospects of decarbonising the sector. Indeed, powering BEVs entirely from renewable electricity promises emissions of just 0.6 kg CO2-e/100km2, as opposed to 25 kg CO2-e/100km currently emitted by the average Australian gasoline powered car or 20 kg CO2-e/100km indirectly emitted by BEVs.
However, entirely renewable energy is a long way away from becoming a reality in much of the world, including many Australian states. While electricity generation is increasingly turning renewable, it is important to understand the energy consumption and emissions of BEVs and FCEVs today and in the near future.
Efficient yet Exposed Why container port congestion isn't going away anytime soon
In the wake of the Ever Given incident in the Suez Canal on March 23rd 1 and the production stoppages due to pandemic-related restrictions, the world witnessed the implications of serious port congestion. As of the 12th of October 2021, 143 container ships totalling more than 1 million TEU in capacity were at anchor outside some of the world’s largest ports.
Containerised shipping has been the main driving force behind unprecedented growth in international trade. It has been instrumental in the globalisation of supply chains because of its immense transport efficiency. However, it is also vulnerable and recent events have pushed many large companies to adopt less efficient, more expensive, and/or less environmentally sustainable transport modes.
Supply Chains for Vehicle Power Packs: Li-Ion Batteries and Hydrogen Fuel Cells
The push towards transport decarbonisation has led to the emergence of Li-Ion battery (BEV) and hydrogen fuel cell (FCEV) powered vehicles as key contenders to traditional fossil fuel vehicles. With an increasing number of countries proposing bans or restrictions to fossil fuel vehicles within the next 10-20 years. In this context it is critical to understand the key challenges and opportunities in the battery and hydrogen fuel cell manufacturing supply chains for road vehicles.
This report is part of a series of discussion papers produced by Foresion that aim to holistically explore contemporary supply chain issues and future directions, focusing on logistics, emerging technologies, and environmental sustainability. These papers are aimed at business practitioners, policymakers and governments as a vehicle for improving integration and visibility along key supply chains.
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Why are we still queuing? Exploring landside congestion factors in Australian bulk cargo port terminals
This research explores truck congestion in 3 bulk cargo ports in Australia to understand contributing factors. Although congestion manifests itself in ports, causal factors may appear across and along supply chains. Some factors include: lack of coordination, misaligned incentives, disruptions, lack of supply chain flexibility, infrastructure limitations, the interdependence of operations or stakeholders' performance expectations
Read full paper here
Image Copyright: Elsevier
Using discrete-event simulation to compare congestion management initiatives at a port terminal
This research uses discrete event simulation to model the operations at a bulk cargo port terminal and evaluate the potential impact of several congestion management initiatives, including IT upgrades, increased truck capacities, terminal infrastructure upgrades and the introduction of a terminal appointment system
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Collaborative Exchange of Cargo Truck Loads: Approaches to Reducing Empty Trucks in Logistics Chains
Reducing the volume of trucks carrying empty or below capacity loads on road networks are both socio-economic and environmental sustainability issues for the logistics industry. Planning concepts for a collaborative logistics exchange based on real-time data are described as well as the benefits in terms of optimizing load capacity utilization, minimization of empty running, reducing costs, traffic congestion, and truck emissions.
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Understanding the Impact of User Behaviours and Scheduling Parameters on the Effectiveness of a Terminal Appointment System
This research improves understanding of the impact of specific types of truck driver behaviour and temporal scheduling on the effectiveness of a terminal appointment system. The modelling presented in this research was used to inform their investigation into developing an appointment system solution.
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Exploring the Role of Information Systems in Mitigating Gate Congestion Using Simulation
This research presents a terminal gate simulation model that improves understanding of the complex interactions at the terminal gate and describes the potential of information and digital systems alternatives for mitigating congestion
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Exploring Congestion Impact Beyond the Bulk Cargo Terminal Gate
Bulk cargo terminal congestion management, approaches have tended to be almost exclusively focused on the sea side of bulk terminals. To-date there has been very limited work on land-side approaches to mitigate congestion in bulk terminals. This paper develops a discrete event simulation model based on data collected from an Australian bulk wood chip export maritime terminal and analyses the effect of infrastructure and process improvements on gate congestion and hinterland logistics chains
Read full paper here