The Future of Carbon Neutral Shipping

As the world’s carbon emissions continue to increase, businesses are making efforts to reduce their carbon footprint. One way they can do this is by opting for carbon-neutral shipping. Despite its potential environmental benefits, many businesses are still hesitant to make the switch due to added costs and complexities involved in carbon-neutral shipping.

Recent research conducted by Boston Consulting Group (BCG) has shown that customers are willing to pay more for carbon-neutral shipping options. In fact, 71% of respondents said they would be willing to pay a premium for these services. On average, respondents were willing to pay up to eight percent more. Although carbon-neutral shipping can be more costly than traditional shipping methods, it can also help businesses save money in the long run. By offsetting carbon emissions, businesses can avoid costly carbon taxes.

The carbon-neutral shipping concept works by offsetting carbon emissions generated by the transportation of goods and products. This is achieved through investment in carbon reduction projects such as planting trees, investing in renewable energy, or carbon capture and storage technologies. The cost of carbon offsets varies depending on the type of project being invested in, but can be an attractive option for businesses looking to reduce their carbon footprint.

In addition to the carbon offset costs, carbon-neutral shipping also involves additional costs such as special packaging or extra fees for carbon neutral transportation. However, the BCG study shows that customers are willing to pay, which means businesses can make carbon-neutral shipping economically viable by charging a premium for such services – and that businesses may be rewarded with increased customer loyalty and brand recognition as a result.

Future Forwarding is always looking to the future, both for innovation and how to best support our employees and clients. Here, we step boldly into the future with tradition as a solid home base and innovation driving us forward. Our industry is ever-evolving and you need a trusted partner that can guide you through the trends. Reach out to us today to see what a brighter future looks like with Future Forwarding on your side.

Changing Trade Volume at the Port of Savannah

While October was the Port of Savannah’s second busiest month on record, moving 552,800 TEUs, in November that number fell to 464,883 TEUs, 30,866 less than November 2021. Yet, even with that decline, the Georgia Ports Authority (GPA) is reporting that their rate of growth has skyrocketed from an annual rate of 5% to a whopping 28%.

Georgia Ports Authority Executive Director Griff Lynch recently said, “Container trade at U.S. ports is returning to a more sustainable growth pattern, which is a positive development for the logistics industry, along with the addition of more than 1 million TEUs of annual capacity, a slight reduction in demand will mean faster vessel service as we work to bring a new big ship berth online at Garden City Terminal in July.”

The slowdown can be attributed to inflation, changes in consumer spending, as well as weather issues from Tropical Storm Nicole keeping big ships from the Savannah River Channel.

However, this lull wasn’t unexpected, according to GPA Chairman Joel Wooten. He said, “While we are planning for a moderation in the container trade, we expect volumes to remain strong, though shy of the historic highs of the past year. Announcements from automakers and other manufacturers coming to Georgia, as well as an array of their suppliers, will mean healthy increases in trade over the long term.”

Experts predict that volumes in 2023 will not be as robust, but still “healthy”.

The decline in volume has also allowed the port to process more vessels and the GPA says they expect to clear their entire backlog of ships by January.

As a full-service logistics provider, you can trust that Future Forwarding has its eye on the ebb and flow of supply chain dynamics and our trusted team of experts is always analyzing how to best make it work for you. Get in touch with us today to discuss how we can help you achieve your goals, whether it be e-Commerce warehousing and fulfillment, freight forwarding, Customs brokerage, compliance, or domestic transportation, we’ll keep you moving.

Month: December 2022

The Future of Carbon Neutral Shipping

Changing Trade Volume at the Port of Savannah

U.S. Head Office

U.S. Legal

U.K. Head Office

U.K. Legal