DPDHL calls for carbon insetting to drive decarbonisation
Advocating a new pathway for freight decarbonisation, Deutsche Post DHL Group (DPDHL) and the Smart Freight Centre - a non-profit organisation dedicated to sustainable freight - have developed a joint white paper ‘Carbon Insets for the Logistics Sector’, calling for the adoption of an innovative approach to decarbonisation - carbon insetting.
The report recommends how organisations can allocate resources to find decarbonisation projects, and strive towards greener logistics. While many solutions already exist including sustainable fuel, fleet renewal, engine retrofitting, and efficiency projects, the organisations state that investments in carbon insetting will not only be highly efficient, but also provide structural improvements of the entire logistics supply chain long term.
"To ensure that the logistics industry can continue to contribute successfully to the fight against climate change, we need a uniform and sector-specific standard for compensating for, and reducing, carbon emissions. In the long-term, greater decarbonization of transport is key to driving positive change. Future-proofed logistics companies should think now about developing a stringent insetting strategy,” commented Tim Scharwath, Member of the Board of Management of Deutsche Post DHL Group, CEO DHL Global Forwarding, Freight.
"There is an opportunity to channel carbon offset funds related to transportation emissions to projects within the logistics sector - a practice known as carbon insetting. This paper lays the foundation for a system to accelerate freight decarbonization,” added Suzanne Greene, Smart Freight Centre's Expert Advisor and author of the white paper.
Key emissions statistics from the report include:
- Freight current contribution to global carbon emissions sits at 8%, which increases to 11% if emissions from logistics sites are included
- Current emissions figures are forecasted to double by 2050 due to demand being anticipated to increase threefold
- In 2018 0.2% of the US$268mn voluntary carbon offset market was allocated to transport related projects
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany