Aristotle University of Thessaloniki, Postgraduate
Program on Environmental Protection and
Sustainable Development, December 2007
Freight Transportation and
Environmental Efficiency: Going
Beyond the ‘S’ Word
Jean-Paul Rodrigue
Associate Professor, Dept. of Economics &
Geography, Hofstra University, New York,
USA
Email: ecojpr@hofstra.edu
Paper available at:
http://people.hofstra.edu/faculty/Jean-paul_Rodrigue
Containerization, Cold Chains and the
“Flexibilization” of Supply Chains
Langoustine (Scottish waters)
Fishing
Fishing
Thailand
Freezing
Scotland
Mechanical peeling
Reefer (3 weeks)
Maturation
Manual peeling
warehouse (3 weeks)
Processing
Packaging
Distribution
Maturation in Reefer
Processing
(3 weeks)
Packaging
Distribution
UK Market
There is More than Meet the Eye…
Maritime Freight Rates (USD per TEU), 1993-2007
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
Asia - Europe
$400
$200
Europe - Asia
Labor
Major factor. Mechanical (lower quality product) to labor intensive
(high quality)
Transport costs
Taking advantage of imbalanced freight rates (lower eastbound
rate). Higher transport costs compensated by lower labor costs.
Warehousing
In circulation. Taking advantage of the 3 weeks return journey to
complete the maturation process. Reducing the real estate
footprint.
Environment
Difficult to assess (possibly negligible).
2007-2
2006-4
2006-2
2005-4
2005-2
2004-4
2004-2
2003-4
2003-2
2002-4
2002-2
2001-4
2001-2
2000-4
2000-2
1999-4
1999-2
1998-4
1998-2
1997-4
1997-2
1996-4
1996-2
1995-4
1995-2
1994-4
1994-2
1993-4
$0
About Freight Transportation …

Transport Geography and Freight
Containerization and Economies of Scale
UPS Willow Springs Distribution Center, Chicago
The Transport Geography Perspective
Infrastructures
Passengers
Freight
Information
Transportation and the Mobility of Passengers and
Freight
Share of total passengers or tons-km
Commuting
Shopping
Recreation
Commodity Chains
Trade
Energy & Raw Materials
Waste disposal
Local distribution
Business
Tourism
Migration
Distance
Performance Comparison for Selected Freight
Modes
Vehicle
Capacity
Truck Equivalency
Barge
1500 Tons
52,500 Bushels
453,600 Gallons
57.7
(865.4 for 15 barges in tow)
Hopper car
100 Tons
3,500 Bushels
30,240 Gallons
3.8
100 car train unit
Semi-trailer truck
Post-panamax containership
VLCC
747-400F
10,000 Tons
350,000 Bushels
3,024,000 Gallons
26 Tons; 910 Bushels
7,865 Gallons
9,000 for a tanker truck
5,000 TEU
384.6
1
2,116
300,000 tons
2 million barrels of oil
9,330
124 tons
5
The Regina and Emma Maersk
6,700 TEU
14,500 TEU
About Transport and the Environment …

The Environmental Dimension of Transport
Transport and Energy
Sustainable Transportation
Translisft crane, NS Rutherford yard, PA
Environmental Dimensions of Transportation
Other
Habitat changes
Land Use
Infrastructure
construction
and maintenance
Social or
ecological
effects
Emissions
Vehicle and parts
manufacture
Travel
Economics
Vehicle
maintenance and
support
Ambient levels
Disposal of
vehicles and parts
Causes
Relationships
Activities
Exposure
Outputs
Quantification
Health,
environmental
or welfare
effects
End Results
Policy Making
Transportation Systems and the Environment
Centralized network
Diffused network
Network
Localized emissions
Energy efficient
Diffused emissions
High energy use
Traffic
Level of emissions
Level of energy consumption
Mode
Nature of emissions
Nature of energy consumption
Emissions from Freight Modes (gram / ton-km)
0
20
40
CO2
60
80
100
120
SO2
NOx
PM
HC
CO
CO2
Ocean shipping
Short sea shipping
Rail
Road
0
0.2
0.4
0.6
0.8
1
1.2
Energy Efficiency by Transportation Mode
10
Helicopter
Car
Propeller Jet
plane plane
Bus
1
Train
Cargo plane
Truck
Bicycle
.1
Container ship
Oil Pipeline
Energy costs
Gas
pipeline
Supersonic
plane
Freight
Passengers
Train
.01
Tanker
.002
Speed (m/sec)
10
30
100
300
1000
Retail Motor Gasoline Prices in Selected Countries,
1990-2006
7
Nominal dollars per gallon
6
Canada
China
Germany
Japan
United States
France
Italy
United Kingdom
5
4
3
2
1
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
Costs of Shipping a 40 foot Container to New York
$8,000
$7,000
$6,000
$5,000
From Hong Kong
From Mexico
$4,000
$3,000
$2,000
$1,000
$0
Barrel at $30
Barrel at $60
Barrel at $100
Sustainable Transportation (Nonesense)
Sustainable Development
Sustainable Transportation
Modes
Infrastructures
Logistics
Environment
Economy
Society
Climate Change
Growth
Safety
Air quality
Jobs and
Prosperity
Health
Noise
Disturbance
Fair Pricing
Land Use
Access
Competitiveness
Waste
Equity
Choice
Green Logistics

Logistics and Reverse Distribution
Paradoxes of Green Logistics
APL “Australia” entering San Francisco Harbor
Green+Logistics or Green/Logistics?
Green
• Environmental efficiency
• Recycling
• Compliance
Logistics
• Distributional efficiency
• Save time / money
Convergence?
Forward and Reverse Distribution
Distributors
Recyclers
Collectors
Suppliers
Consumers
Producers
Forward Channel
Reverse Channel
The Paradoxes of Green Logistics
Dimension
Outcome
Paradox
Costs
Reduction of costs through improvement in
packaging and reduction of wastes. Benefits
are derived by the distributors.
Environmental costs are often externalized.
Time /
Flexibility
Integrated supply chains. JIT and DTD provide
flexible and efficient physical distribution
systems.
Extended production, distribution and retailing
structures consuming more space, more energy
and producing more emissions.
Network
Increasing system-wide efficiency of the
distribution system through network changes
(Hub-and-spoke structure).
Concentration of environmental impacts next to
major hubs and along corridors. Pressure on local
communities.
Reliability
Reliable and on-time distribution of freight and
passengers.
Modes used, trucking and air transportation, are
the least environmentally efficient.
Warehousing
Less warehousing per unit of freight. Inventory
in circulation.
Inventory shifted in part to public roads (or in
containers), contributing to congestion and space
consumption.
E-commerce
Increased business opportunities and
diversification of the supply chains.
Changes in physical distribution systems towards
higher levels of energy consumption.
Costs Paradox: Logistical Improvements,
Manufacturing Sector, 1960s to 2000s
20
40
Logistics Costs (% GDP)
18
Cycle Time Requirements (days)
% of GDP
14
12
30
25
25
10
20
8
15
6
10
4
7
2
5
4
0
1960s
1970s
1980s
1990s
3
2000s
0
Days
16
35
Inventory Costs (% GDP)
35
Time Paradox: Average Order Lead Times of
European Manufacturers, Wholesalers, and Retailers
25
Days
20
15
10
5
0
1985
1990
1995
2000
2005
2010
Network Paradox
Feeder
Hub
Environmental Pressure
Freight Traffic at the World’s Largest Airports, 2005
25
2005
2000
1995
1990
1985
1980
20
15
10
5
49
47
45
43
41
39
37
35
33
31
29
27
25
23
21
19
17
15
13
11
9
7
5
3
0
1
Millions
Rank / Size of the 50 Largest Container Ports, 19802005 (TEUs)
Paradox: Reliability
p(T’)
p(T’a)
Ta’ -
T’0
Ta’ + σ
σ
T’a
Paradox: Warehousing
Material flow (delivery)
Information flow (order)
Raw
Materials
Delivery units for parts
Moving storage units
Manufacturing
Distribution
Center
Assembly and
warehousing
Retailers
Customers
Supply Chain Management
Delivery units for finished
goods
Moving storage units
Characteristics of Large-scale Distribution Centers
Size
Larger
More throughput and less warehousing.
Facility
One storey; Separate loading
and unloading bays
Sorting efficiency; Potential for cross-docking.
Land
Large lot
Parking space for trucks (often not necessary due to
high throughput); Space for expansion.
Accessibility
Proximity to highways
Constant movements (pick-up and deliveries) in small
batches (often LTL); Access to corridors and markets.
Market
Regional / National
Less than 48 hours service window.
IT
Integration
Sort parcels; Control movements from receiving docks to
shipping dock; Management systems controlling
transactions.
Typical Freight Distribution Cluster, Piscataway, New
Jersey
Logistics and E-commerce
Supply chain
Supply chain
E-Retailer
DC
Retailer
Customers
Customers
E-Logistics
Traditional Logistics
DC
Environmental Vicious Circle of Logistics
Application of
logistics
More ton-km
transported
Energy consumption
Pollutant Emissions
Activities less
Spatially
constrained
Space consumption
City Logistics
DC
Central City
Conclusion
■ Freight transportation is profit driven
• Any strategy that promotes efficiency will be considered.
• So far, logistics has left a paradoxical environmental impact.
• The current context may lead to several innovations.
■ Sustainability
•
•
•
•
A vague and mostly inapplicable concept.
Could lead to wrong strategies and technologies.
Lead to unintended consequences?
Policy driven or market forces?