94% shippers and carriers want to cut emissions, with electric vehicles a core focus
Ninety-nine percent of shippers say they would take would take up electric vehicle transportation where available, but 94% of transportation professionals don’t expect to meet climate goals this year
Ninety-four percent of 500 US transportation professionals surveyed for a study agreed that consumer demand for more sustainable products has pushed emissions cuts up to a top priority in 2023.
One area that appears to have already been decided in this fight is the deployment of electric and alternative energy vehicles. A near unanimous 99% of shippers would take advantage of these if offered them as options by carriers in their networks, while a similarly high 97% of carriers said that they see value in adding EVs to their fleets, although a lower 59% plan to do so by the end of 2023, while 15% plan on adding them in 2024.
These results follow on from similar research from Reuters Events, Supply Chain, which found in a 2022 survey that 54% of European fleet operators planned to acquire electric light commercial vehicles over the following 24 months, while 40% said the same for combustion engine counterparts.
Despite the recognition of the climate emergency and sustainability goals, a matching 94% of respondents said that the current macroeconomic environment will make it extremely or somewhat difficult to meet emissions reduction goals this year.
The pushback from economic conditions appears to revolve around transportation costs, as 63% anticipate higher than average linehaul rates over the next 12 months and the top concerns were volatile diesel fuel prices (51%), limited freight capacity (37%) and driver shortages (36%).
Addressing these concerns would work towards both reducing vulnerability to macroeconomic conditions alongside emissions goals, most notably through greater capacity utilisation.
Respondents appeared to recognise this, as 70% said strengthening partnerships is a core focus. However, half also said that they lack information about available carriers, showing the distance that needs to be bridged in this area.
“Inflation, volatile fuel prices, and capacity fluxes will continue to weigh heavily on the transportation industry, making it more important for organizations to prioritize efficiency measures,” said Matt Muenster, chief economist at Breakthrough. “Despite these economic hurdles, the desire for sustainable practices remains. With an abundance of intermodal capacity and a surge of investment in alternative energy technology and vehicles, shippers and carriers have an opportunity to shift toward more eco-conscious operations.”