As part of the global interest in capping the global rise in temperature and decreasing CO2 (carbon dioxide) emissions, Freightos has added the ability to sort quotes according to a "Green" rating, based on a calculation of the carbon emissions resulting from moving cargo.
The CO2 calculation is based on industry standards, combined with distance required for moving cargo and mode of transport.
Why This Matters
Every year, 33 billion tons of CO2 are emitted (a giant “CO2 cube” of that would measure 28 km per side). And the freight industry’s contribution to total GHG (Green House Gasses) is about 10% for developed countries (and much more for developing countries).
Some more not-so-green facts:
- Freight makes up 16% of US corporate greenhouse gas emissions.
- Ocean shipping accounts for 2.2% of global carbon emissions. The International Maritime Organization (IMO) projects emissions to increase 50%-250% by 2050.
- Air freight emits nearly 50 times more emissions per kilometer than ocean transportation.
What The Industry is Doing
Many forwarders are looking to reduce emissions by adopting "green freight" practices. Additionally, there is a growing list of upcoming carbon reduction legislation that will enforce increased care in this area.
Additionally, many forwarders are now interested in both emissions reporting and emissions reduction. For instance over 70 percent of the 500 largest US-traded companies have issued Corporate Sustainability Reports, particularly related to carbon emissions. And if shippers want that data, forwarders will be providing it.
What Freightos is Doing
The Freightos Marketplace offers both emissions reporting and sorting by greenest, providing shippers the option to select greener routes, rather than merely the quickest or cheapest, route option.
Green freight initiatives fit with Freightos’ commitment to making the freight industry more transparent. Every shipping service offered on the Freightos Marketplace will now include a transparent CO2 footprint estimation, just one component of a suite of free CO2 calculation tools that will help customers optimize route and mode selection with live international CO2 footprint calculations.
How Do We Calculate CO2 Emission
CO2 emissions = Transport weight/volume by transport mode x average transport distance by transport mode x average CO2-emission factor per tonne-km by transport mode.
(Where for Air Freight the average CO2 emission factor per tonne-km is 500g, and for Ocean Freight the the average CO2 emission factor per tonne-km is 4.3g.)
Ocean Freight Example:
CO2 estimation for shipping a 20’ container from Hong Kong to Hamburg:
- Sailing distance from HKHKG Hong Kong to DEHAM Hamburg based on actual routes in commercial sailing schedules is 15073.00 km
- For one 20’ container: 1.0 TEUs * average of 11.0 tons/TEU represents an estimated weight of 11000.00 kg
- 11 ton * 15073.0 km * 4.3 g / 1000000 = 713.0 kg CO2 emission (estimation)
Air Freight Example:
CO2 estimation for a 700 kg shipment from Konwojowa, Bielsko-Biała, Poland to Garrett, IN, US:
- Distance from Konwojowa, Bielsko-Biała, Poland to Garrett, IN, US based on actual routes in commercial flight schedules is 7485 km
- Transport weight by transport mode is 700 kg or 0.7 ton
- 0.7 ton * 7485 km * 500 g / 1000000 = 260 kg CO2 emission (estimation)