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E-Bikes in Terminals: A Step Toward Greener Logistics, but at What Cost?

global trade terminals

E-Bikes in Terminals: A Step Toward Greener Logistics, but at What Cost?

As the push to decarbonize ports and terminals accelerates, interest is growing in adopting battery-powered e-bikes, e-scooters, and e-motorbikes as alternatives to traditional diesel-powered vehicles. While these electric vehicles offer a cheaper, cleaner option, cargo handling insurance specialist TT Club warns that their integration into logistics facilities presents significant safety and operational risks.

Read also: Reducing Carbon Footprints: How Logistics Can Support Green Building Initiatives

Challenges in Terminal Design and Traffic Management

Ports and logistics facilities are primarily designed to accommodate large cargo vehicles and heavy equipment. Introducing smaller, battery-powered personal vehicles into these environments creates challenges due to their lower visibility and vulnerability. Traffic layouts, road conditions, and the overall infrastructure in terminals are tailored for robust machinery, not for lightweight, two-wheeled vehicles.

Neil Dalus, TT Club’s Risk Assessment Manager, highlights the inherent dangers posed by terminal surfaces: “Designed to withstand high volumes and heavy loads, terminal pavements often suffer wear and tear, leading to uneven surfaces. For smaller wheeled vehicles, these conditions are hazardous. Rail crossings, spills, and wet surfaces exacerbate the risk, especially for two-wheeled vehicles that lack the stability of their four-wheeled counterparts.”

Safety Measures and Planning

The addition of e-bikes and similar vehicles also blurs the boundaries between different user groups, such as pedestrians and cargo-handling equipment. TT Club recommends enhanced traffic safety planning, including:
– Licensing and training programs for operators.
– Mandating the use of personal protective equipment (PPE).
– Redesigning traffic layouts to accommodate diverse vehicle types.

Fire Risks in Charging and Maintenance

The increased adoption of electric vehicles brings another pressing issue: fire risks during charging. TT Club emphasizes the need for:
– Comprehensive due diligence in vehicle and charging station procurement.
– Rigorous fire risk assessments to determine the safest locations for charging points.

Balancing Innovation and Safety

While e-bikes and similar vehicles contribute significantly to cost savings and emissions reductions, their integration must be carefully managed. Dalus concludes, “Battery-powered personal transport vehicles offer substantial benefits, but their adoption requires meticulous planning and risk management. Only by addressing these concerns can we balance innovation with safety and achieve a cleaner, more sustainable working environment in the cargo handling industry.”

As the logistics sector continues its journey toward greener operations, port and terminal operators must navigate these challenges to ensure that sustainability efforts do not come at the expense of safety and operational efficiency.

directive global trade silk esg

How ESG Reporting Software Can Help Companies Meet Sustainability Goals

Businesses are required to produce a variety of reports detailing their activities, primarily for government and other regulatory bodies. Regular reporting is a key component of compliance, which the company needs to stay in business and avoid penalties. Of course, reporting is also a vital part of establishing trust in the organization, which is important for investors and public interest in transparency.

Read also: Managing ESG risk – the New Supply Chain Challenge

ESG reporting software in particular helps companies to ensure that they meet requirements for certain aspects of their operations. By using ESG reporting software, businesses can increase their accuracy and efficiency on the way to meeting goals for sustainability.

What Is ESG Reporting?

ESG reporting is a series of potential reports that companies might make as a way of highlighting their environmental, social, and governance aspects. Government regulations may require businesses to make regular reports identifying their impacts on various social, governmental or environmental systems.

While reporting is often compulsory, companies find many benefits from ESG reporting as well. Investors often make decisions about where or how much to invest from the reports that the organization publishes. Regular, accurate reporting about the business’s operations and activities can build trust in the organization as a whole.

Benefits of ESG Reporting Software

Without software to create ESG reports, companies may not know which data to collect or how to synthesize it into useful information for regulatory bodies or the public. Business administrators may struggle to maintain compliance with laws and regulations, putting them at risk for audits and penalties. By choosing to use ESG reporting software, organizations avoid these problems and gain several benefits.

Streamlined Data Collection and Management

ESG reporting software can help a company streamline its data collection and management, as part of achieving larger goals for sustainability. Software provides a complete system that makes data collection simple. The software can tell users the scope of data needed for the report, and it integrates seamlessly with other systems.

Additionally, the software provides other benefits for data management. Users can generate reports in a short period of time, converting data collection into practical information and insights for the company. The automation of these systems provides the opportunity to generate reports in real-time, with data visualization and other key components of performance analytics.

Increased Reporting Accuracy

For companies that want to show their commitment to sustainability, as well as needing to meet government regulations on sustainability, reporting precision is key. ESG reporting software increases the accuracy of data collection and reporting by automating much of the process. Automation lessens the load by removing the requirement that human workers input the information, which also increases overall accuracy by removing human error.

Automated data collection and management also simplifies the reporting process, giving businesses the opportunity to expand their reporting capabilities. Much as companies would use a proxy statement design for regulatory reports, ESG reporting software provides an attractive package for important public information.

Improved Decision-Making

The improved data collection and management provided by ESG reporting software yields additional benefits for businesses that wish to make continual improvements. While reporting requirements may only come up once a year, companies can use the software to track their performance in real time. Administrators can determine if they are on-track to meet future targets. Ultimately, the long-term advantage of the software lies in better decision-making from major stakeholders. Aggregated data and collaboration help teams to adjust their processes and ensure that they meet the needs of the company as it works to reach sustainability goals.

Reporting is a routine part of business operations and one that helps to build trust in the organization. By implementing ESG reporting software as part of a greater plan to increase the company’s overall sustainability, business administrators can confirm that they meet government regulations and their own long-term plans.

Author bio

Adam Nguyen is Senior Vice President for Donnelley Financial Solutions™, a global financial solutions company. He has many years of experience in the industry and focuses on the company’s financing activities and daily operations.

global trade ICS2-ENS

Survey Highlights Logistics Industry’s Lack of Readiness for Upcoming EU Customs Regulations

Trade Tech, Inc., a global logistics solutions provider, has released findings from a recent survey that reveal critical knowledge and preparedness gaps regarding the EU’s upcoming ICS2-ENS and EORI requirements. Despite widespread awareness of the regulations, fewer than half of survey respondents feel prepared to meet the December 4, 2024, deadline for ICS2-ENS compliance. This delay in readiness poses significant risks for companies handling shipments into and within the EU.

Read also: Embracing ICS2-ENS: Navigating the Future of Global Trade with Precision and Insight

Key insights from the survey include

ICS2-ENS Awareness: Nearly 47% of respondents lacked awareness of the ICS2-ENS requirements, highlighting a considerable knowledge gap.

Preparedness for Compliance: Only half of the respondents are on track to meet the December 2024 compliance deadline.

Regulation Timeline Awareness: Just over half (56.5%) know the compliance deadline, while many remain uninformed of the timeline.

Perceived Operational Impact: While 58.8% of industry participants anticipate an impact from ICS2-ENS, 32.9% are uncertain about the regulation’s effects.

EORI Number Awareness: Although 58.2% recognize the importance of an EORI number for EU-bound shipments, awareness remains insufficient.

EORI Registration by June 2024: Only 47.1% of respondents were aware of the EORI registration deadline, signaling a need for improved education.

Bryn Heimbeck, President and Co-Founder of Trade Tech, emphasized the urgency of addressing compliance. “Our goal is to ease the industry’s transition to ICS2-ENS with minimal disruption. The survey results highlight a need for stakeholders to act promptly to avoid last-minute complications and ensure seamless cargo flow.” Trade Tech is prepared to support clients as compliance deadlines approach, leveraging its expertise to guide companies through the complex regulatory landscape.

To aid in this transition, Trade Tech has launched cargofiling.com, a dedicated resource offering expert guidance on EU ICS2-ENS regulations and other customs requirements. This new site provides essential tools to help companies meet the December 2024 deadline, helping ensure smooth and compliant operations within the EU market.

LEZ global trade

Going Green: The Effects of LEZs across European Cities

DFS explores the impact o Low Emission Zones (LEZ) on the fueling topography of the continent in years to come.

Read also: Lessons For Ports: How To Seek $3 Billion In U.S. Grants For Zero-Emission Moves

Signs bearing the latest Low Emission Zone (LEZ) guidelines have become a familiar sight in European urban areas, with 320 LEZs now in play across the continent and 500 expected by 2025.

The system has been praised for improving air quality in cities, while reducing overall road traffic and boosting the local economies in which they operate.

According to the latest statistics, Italy is blazing a trail with 172 LEZs across the country, followed by Germany with 78. Most other countries meanwhile remain in their infancy with each boasting fewer than 20.

But is this set to change in future?

Fueling company, Dover Fueling Solutions (DFS), explore their impact and explain how Low Emission Zones (LEZ) may change the fueling topography of the continent in years to come.

Why are Low Emission Zones important?

The Clean Cities Report in 2022 cited the twin challenges of toxic air pollution and climate change as reasons for implementing LEZs.

According to the World Health Organization (WHO), air pollution is the biggest environmental risk to health, causing 300,000 premature deaths per year in the EU alone.

Starkly, EU air quality limits are reportedly being breached in over 100 cities across the continent. This places those living in urban areas at significant risk, meaning it is imperative that anti-pollution measures are taken.

Burning fossil fuels is the main cause of air pollution which includes emissions from factories, power plans and vehicles. Agriculture and its accompanying bi-products, methane and ammonia, are another leading cause while volcanoes, dust, pollen and wild fires are more natural contributors.

This not only pertains to physical health. The mental health benefits have also been corroborated.

Research demonstrates that small increases in air pollution are linked to rises in depression and anxiety amongst the urban populace. Cleaner air also means an improvement in intelligence and a lower risk of dementia too.

Looking ahead, expect to see LEZs supplanted by Zero Emission Zones. These have been trialled in European cities including Milan, Paris, Brussels, Madrid and Warsaw, with much success.

What are the recorded effects of LEZs across Europe?

This is all well and good in principle, but do LEZs bring positive effects in practice?

Well, the Clean Cities Campaign points to an average reduction in nitrogen dioxide emissions of around 20% across all LEZ areas. Further results were as follows:

London – 40%

Brussels – 33%

Paris – 24%

Lisbon – 22% 

London’s (ultra) LEZ makes for an interesting case study. A study from Bath University established that less nitrogen dioxide pollution contributed to a 4.5% reduction in long-term health problems, in addition to an 8% drop in respiratory illness.

The healthcare cost savings in dealing with this are estimated at £963 million in the Greater London area alone. Experts also predict that London’s ULEZ has helped reduce anxiety by 6%. This can be explained by the positive neurological impacts of cleaner air added to the enhanced conditions for physical exercise.

In the light-duty vehicle arena, Rotterdam’s LEZ has reduced the number of severely polluting cars by half, with an accompanying 20-30% reduction in soot.

The benefits of LEZ schemes extend beyond cleaner air too. This includes more stable traffic flows with little recorded negative business impacts. 

How is LEZ affecting clean fuel adoption?

It could also be said that LEZ are changing the face of refueling across the continent.

In the European Commission’s 2050 long-term strategy, alternative fuel sources such as electricity, Hydrogen, LNG / CNG and biofuels were outlined as cleaner alternatives to traditional liquid fuels within the transport sector.

Because these power sources avoid the use of diesel and gasoline, they can in turn, help to reduce air pollution, particularly in urban areas with a higher volume of traffic.

As a result, electric vehicle (EV) adoption, and therefore EV charging infrastructure, has been concentrated around cities – particularly those with an LEZ in place. For example, areas with an LEZ (or a planned LEZ) in operation, reached remarkably higher levels of EV penetration than their national averages.

89% of new vehicle registrations in Oslo, for instance, were Battery Electric Vehicles (BEV) or Plug-in Hybrid Electric Vehicles (PHEV), followed by Amsterdam (31%), London (22%) and Paris (20%).

Across other alternative fuels, there is a correlation too. While liquified natural gas (LNG) refueling stations tend to lie outside the bandwidth of LEZ boundaries, there’s a notably higher concentration of LNG stations within countries that have implemented LEZ and ULEZ.

This certainly shows that LEZs are having a positive impact on clean fuel adoption.

Whether this means that traditional city centre refueling stations will become a thing of the past remains up for debate, especially with the sale of ICE vehicles still permitted – in some countries – beyond 2030. One possibility, however, is that given the rise of LEZs, petrol and diesel stations may be pushed further and further out of the city and along motorway infrastructure.

Conclusion

The growth of LEZ and ULEZ across the continent has been a defining feature of recent years and looks set to continue in future.

This has brought some impressive benefits from cleaner air to better physical and mental health and reduced congestion.

There certainly appears to be a positive correlation between these zones and cleaner transport adoption, with motorists looking to combat daily charges and embrace more sustainable driving practices.

This may mean that those in more urban and metropolitan areas transition quicker than those in more rural areas, but the long-term effects remain to be seen.

 

climate global trade logistics

Climate Change: Challenges and Opportunities for Global Shipping

The global shipping industry, responsible for transporting approximately 80-90% of goods worldwide, faces a complex landscape of risks intensified by climate change. As temperatures rise and weather patterns become more unpredictable, the impact on shipping routes and operations is profound.

The Good of Climate Change

One positive outcome of climate change is the emergence of new Arctic trade routes, such as the Northern Sea Route and the Northwest Passage. The melting ice opens up shorter paths between continents, potentially reducing travel time and fuel consumption. However, the reliability of these routes remains uncertain due to variable ice conditions and inadequate infrastructure.

The Bad of Climate Change

Conversely, traditional routes like the Panama Canal are facing challenges due to decreasing water levels caused by drought. This leads to longer passage times, increased costs, and congestion at either end of the canal. Additionally, severe weather events pose risks to maritime operations, necessitating costly adaptations in route planning and vessel design.

Read also: Panama Canal Water Levels to impact Westbound Trade Well Into 2024

The Ugly of Climate Change

The utilization of Arctic routes raises geopolitical concerns as nations vie for control over valuable resources. Russia’s military ambitions in the region highlight the potential for conflict, while regulatory and environmental issues surrounding new routes remain unresolved. Marine insurers must navigate these complexities while also adapting to regulatory changes such as IMO2050 and IMO2020.

Read also: Rising Carbon Emissions in Shipping: The Impact of Geopolitical Tensions

How Marine Insurers Are Responding

Marine insurers are investing in loss prevention technologies, focusing on climate change mitigation, and collaborating with the shipping industry to understand evolving risks. This includes embracing digitalization, preparing for extreme weather events, and developing innovative solutions to help clients adapt to a changing climate.

Final Thoughts

As the shipping industry grapples with the challenges of climate change, insurers are at the forefront of innovation and adaptation. By leveraging data, understanding evolving risks, and collaborating with industry stakeholders, insurers are poised to support clients in navigating the complexities of a changing maritime landscape.

carbon emissions global trade

Rising Carbon Emissions in Shipping: The Impact of Geopolitical Tensions

In a concerning trend, carbon emissions from shipping have surged, fueled by geopolitical tensions affecting maritime routes. Recent data from the Xeneta and Marine Benchmark Carbon Emissions Index reveals a substantial increase in pollution, particularly in key trade routes.

During the first quarter of this year, carbon emissions from ocean freight container ships traveling from the Far East to the Mediterranean skyrocketed by 63% compared to the same period last year. Similarly, vessels bound for North Europe experienced a notable 23% increase. The primary cause? Vessels bypassing the Red Sea due to security concerns stemming from attacks by Iranian-backed Houthis in Yemen.

Emily Stausbøll, a market analyst at Xeneta, highlighted the significant impact of these diversions. Ships navigating to the Mediterranean added an extra 5,800 nautical miles to their journeys, resulting in escalated fuel consumption and higher speeds to compensate for extended distances.

Moreover, air transportation has emerged as an alternative, with cargo flights from Dubai to European destinations witnessing a staggering 190% surge in March compared to the previous year. Despite its efficiency, this shift towards air freight poses sustainability challenges, leading to increased carbon emissions per ton of cargo transported.

Stausbøll further noted a resurgence in rail services through Russia for transporting goods from the Far East to Europe. While offering an alternative to maritime and air routes, rail transport is also comparatively carbon-intensive.

Adding to these challenges are the European Union’s efforts to include carbon emissions from large ships entering EU ports in its Emissions Trading System, commencing in January. This phased extension aims to mitigate shipping-related carbon emissions, albeit at potentially higher costs for shippers.

Meanwhile, as the world commemorates Earth Day, environmental initiatives such as beach clean-ups gain significance. In Israel, the focus on “Planet vs. Plastics” aligns with efforts to address marine pollution. Notably, a beach clean-up organized by EcoOcean, EcoLove, Organic Zone, and the Emek Hefer Regional Council underscores the collective commitment to environmental stewardship.

Amidst escalating carbon emissions in shipping, stemming from geopolitical dynamics, the imperative for sustainable solutions and collaborative action becomes increasingly urgent.