Green Logistics: Holding Steady on Sustainability – The Supply Chain Xchange

Report on Mitigating ‘Empty Miles’ in Logistics to Advance Sustainable Development Goals

Introduction: The Economic and Environmental Imperative

The practice of trucks driving “empty miles” presents a significant challenge to both economic viability and environmental sustainability within the logistics sector. This inefficiency imposes direct financial burdens on shippers and carriers through wasted fuel, increased operational costs, and accelerated vehicle depreciation. From a sustainability perspective, it directly contravenes several United Nations Sustainable Development Goals (SDGs).

• Economic Impact: Rising fuel costs and volatile freight rates exacerbate the financial strain of empty miles, which account for approximately one-third of all truck miles driven in the U.S. This inefficiency undermines economic growth and stability, conflicting with the principles of SDG 8 (Decent Work and Economic Growth).
• Environmental Impact: Unnecessary mileage results in excessive fuel consumption and greenhouse gas emissions, directly hindering progress on SDG 13 (Climate Action). It also represents a wasteful use of resources, which is counter to the goals of SDG 12 (Responsible Consumption and Production).

Addressing this issue requires a strategic approach that integrates both immediate tactical solutions and long-term structural changes to create a more resilient and sustainable supply chain infrastructure, in line with SDG 9 (Industry, Innovation, and Infrastructure).

Strategic Solutions for Sustainable Logistics

Short-Term Strategy: Collaborative Transportation

An immediate approach to reducing empty miles involves collaborative logistics, where shippers share transportation resources to improve asset utilization.

Alignment with SDG 17: Partnerships for the Goals

This model is a direct application of SDG 17 (Partnerships for the Goals), fostering cooperation among industry competitors to achieve shared sustainability and economic objectives.

1. Resource Sharing: Shippers can collaborate to fill empty space on trucks, similar to a carpool system. This practice is already being adopted by 40% of shippers to achieve cost and service improvements.
2. Technology and Innovation (SDG 9): Artificial intelligence (AI)-enabled technology is crucial for identifying and matching loads with available carrier assets in real-time. This optimizes routes, reduces dead-head mileage, and increases overall efficiency.
3. Role of Neutral Third Parties: Third-party logistics (3PL) providers can act as neutral brokers, managing these complex collaborative arrangements and identifying network imbalances to create synergistic shipping opportunities.

Long-Term Strategy: Network Design and Optimization

For enduring sustainability, shippers must focus on redesigning their internal logistics networks to eliminate systemic inefficiencies.

Contribution to SDG 9 (Infrastructure) and SDG 11 (Sustainable Cities and Communities)

A long-term strategy involves a fundamental reassessment of physical infrastructure to create more efficient pathways from production to consumption. This reduces traffic congestion and emissions in communities, supporting SDG 11.

• Strategic Facility Placement: Shippers should analyze their warehouse footprint and consider consolidating or relocating facilities to be closer to high-demand regions. This shortens delivery routes and eliminates unnecessary inter-warehouse transfers.
• Order Consolidation: Systematically consolidating orders into fewer, fuller truckloads reduces the total number of trucks on the road. Optimized networks could cut empty miles by nearly two-thirds, directly advancing SDG 13 (Climate Action) by lowering carbon emissions.
• End-to-End Operational Review: A holistic review of the supply chain can identify bottlenecks. For example, reducing the average two-hour wait time for trucks at facilities minimizes fuel waste from idling and improves asset productivity, aligning with SDG 12.

Conclusion: A Framework for Sustainable and Cost-Effective Operations

The era of declining freight rates that masked network inefficiencies is over. To navigate the current volatile landscape, shippers must prioritize efficiency. Reducing empty miles is a primary step toward achieving both cost control and corporate sustainability commitments. By implementing a dual strategy of short-term collaboration and long-term network optimization, companies can build a more resilient and responsible supply chain.

Recommendations for Action

• Embrace partnerships with other shippers and 3PL experts to leverage collective assets and data, fulfilling the mandate of SDG 17.
• Invest in technology and data analysis to facilitate network redesign and operational consolidation, thereby fostering innovation as called for in SDG 9.
• Integrate the reduction of empty miles into core business strategy as a measurable contribution to achieving global sustainability targets, particularly SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action).

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 9: Industry, Innovation and Infrastructure

• Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
  • Explanation: The article discusses retrofitting logistics operations by adopting AI-enabled technology to match loads with carriers, optimizing shipping networks, right-sizing warehouse footprints, and consolidating orders. These actions directly contribute to increasing the resource-use efficiency of the shipping industry.

SDG 12: Responsible Consumption and Production

• Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
  • Explanation: The core issue of “empty miles” represents an inefficient use of natural resources, specifically fuel. The article’s strategies, such as transport collaboration and network optimization, are aimed at reducing fuel consumption by ensuring trucks are utilized more effectively.
• Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
  • Explanation: “Empty miles” can be viewed as a form of waste—wasted fuel, wasted vehicle capacity, and wasted time. The article focuses on preventing and reducing this waste through better planning, collaboration, and technology, which aligns with this target.

SDG 13: Climate Action

• Target 13.2: Integrate climate change measures into national policies, strategies and planning.
  • Explanation: While the article focuses on corporate strategy rather than national policy, the actions it promotes directly support climate change mitigation. The text explicitly states that optimizing shipping networks leads to “less carbon emissions,” demonstrating how industry-level strategies contribute to broader climate goals.

SDG 17: Partnerships for the Goals

• Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.
  • Explanation: The article heavily advocates for partnerships as a key solution. It details short-term strategies like “transport collaboration” where shippers share resources and long-term strategies involving partnerships with third-party logistics (3PL) providers to manage technology and operations. The article cites that “40% of shippers were already collaborating with other companies” to achieve improvements.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Percentage of empty miles: The article explicitly identifies this as a key problem, stating it “accounts for approximately a third of all miles driven by trucks on U.S. roads.” A reduction in this percentage would be a direct indicator of progress.
• Carbon emissions reduction: The article mentions that network optimization results in “less carbon emissions.” Measuring the volume of CO2 emissions from freight operations would be a direct indicator of climate action progress.
• Fuel costs and consumption: The article frames the issue around weathering “gasoline costs.” A reduction in fuel costs is a direct financial indicator that implies a reduction in fuel consumption, a key measure of resource efficiency.
• Percentage of shippers engaged in collaboration: The article cites a “2020 Third-Party Logistics Study” finding that “40% of shippers were already collaborating.” An increase in this percentage would serve as an indicator for measuring the success of partnership-based strategies (SDG 17).
• Truck wait times at facilities: The article notes that “trucks wait an average of two hours to pick up or drop off at a shipper’s facility.” Reducing this average wait time is a measurable indicator of improved efficiency in warehouse and yard management, which contributes to reducing fuel waste.

4. Table of SDGs, Targets, and Indicators

Source: thescxchange.com