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Contribution of digitalization to reducing the environmental footprint of freight transportation: challenges and levers

In: Environmentally Responsible Supply Chains in an Era of Digital Transformation

Author

Listed:
  • Eric Ballot
  • Mariam Lafkihi
  • Shenle Pan

Abstract

The logistics industry has played a crucial role in global economic development over the past two centuries, but the current organization of freight road transportation is highly fragmented and lacks efficiency, resulting in significant losses. According to data collected by McKinnon et al. (2003), freight transportation could be achieved with ten times fewer trucks in a perfect world. However, trends such as automation, digitalization, and stricter emission standards are disrupting the industry, and freight forwarders, logistics providers, and trucking companies are under pressure to improve. The current organization of the industry, with a few big carriers and many small companies, makes consolidation a necessary solution for improvement. By addressing fill rates, empty trips, idle time, and waiting time, there is potential for a 42 per cent improvement through digitalization. This chapter presents the concept of consolidation and resource sharing in freight transportation, utilizing new digitalization technologies to address the sources of losses and promote environmentally responsible transportation.

Suggested Citation

  • Eric Ballot & Mariam Lafkihi & Shenle Pan, 2024. "Contribution of digitalization to reducing the environmental footprint of freight transportation: challenges and levers," Chapters, in: Pietro Evangelista & Jukka Hallikas & Mohamad Y. Jaber (ed.), Environmentally Responsible Supply Chains in an Era of Digital Transformation, chapter 11, pages 206-217, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21416_11
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    File URL: https://www.elgaronline.com/doi/10.4337/9781803920207.00016
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