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Reducing the Carbon Footprint of Road Freight Transport

Professor Alan McKinnon

Kühne Logistics University, Hamburg

Heriot-Watt University, Edinburgh

Parliamentary Office of Science and Technology Seminar th London, 12 June 2012

Economic Growth Increases Freight Transport Emissions per Capita

US Canada Australia

Source: Eom, Schipper and Thompson, 2012 CO2 emissions from UK domestic road haulage UK-registered lorries

20.0 19.5

19.0 18.5 18.0 17.5 17.0 Total emissions

16.5 tonnes of CO2 of tonnes 16.0 15.5 15.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0.145

0.14 Carbon intensity km - 0.135

0.13

0.125

0.12

kg CO2 CO2 tonne per kg 0.115

0.11 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Data Sources: DfT: Road Freight Statistics; DEFRA: Guidelines to GHG Conversion Factors for Company Reporting Decarbonisation Framework for Road Freight Transport

Weight of goods produced / consumed Similar analyses modal split for other modes modal split Weight of goods transported by road average handling factor number of links

Road tonnes-lifted supply chain structure average length of haul length of links Road tonne-kms

average load on laden trips vehicle utilisation average % empty running

Total vehicle-kms Vehicle operation / fleet management energy efficiency timing of energy efficiency deliveries

energy consumption

CO2 carbon intensity of energy

aggregate key parameter - lever carbon content of energy Decarbonisation Scenario for UK Road Freight in 2050

Total amount of freight movement stable at 2007 level

Road share of freight tonne-kms reduced from 64% to 50%

% of kilometres run empty reduced from 27% to 17%

Average weight-based load factor up from 59% to 70%

40% improvement in energy efficiency

30% reduction in the carbon content of the energy

80% reduction in CO2 emissions relative to 1990

Source: McKinnon and Piecyk, 2009 Trend in Freight Transport Intensity

Ratio of Tonne-kms to GDP

140 Spain

120 EU25 100

80 UK 60

40

20

0

Source: Eurostat % of Lorry-kms Run Empty: 1973-2010

36

34

32

30

28

26

kms run kms run empty - 24

22

% lorry of % 20

75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09

1973 Source: Department for Transport – CSRGT

Source: Eurostat report 63/2011 Average Lading Factor: % of tonne-km capacity actually utilised

75% Adjustment to max wt 70% increase

65%

60%

55%

50% All rigids 45% All artics 40% All HGVs Source: Department for Transport – CSRGT 35%

30%

Increase in maximum truck weight – industry takes time to adjust to new limit Declining density of freight – no account taken of cube utilisation of lorries Growth of just-in-time replenishment – more frequent delivery of smaller orders Fuel Consumption of HGVs: litres per 100 kms

34.5

34.0

33.5

33.0

32.5

32.0

31.5

31.0

30.5

30.0

29.5

fuel duty escalator steep oil price rises

Source: Department for Transport – CSRGT International Energy Agency Projections 2005-2050 Trucking 6000

5000

4000 modal shift -6%

3000 alternative energy -60% -29%

2000 improved efficiency -40% -24%

1000 GHG emissions (m GHGtonne(m emissions CO2e)

0 2005 2050 2050 high 2050 baseline baseline scenario ‘Blue map shift scenario’ Source: IEA, 2009 Expanding Literature on Low Carbon Technology for Levels of Environmental Intervention

Supply Chain Structure

Logistics System Design

Vehicle Routing and Scheduling

Vehicle Loading

Driving

Vehicle Maintenance

Vehicle Design

Vehicle + equipment manufacturers

Logistic service providers

Individual shippers

Supply chain partners

National Government European Commission Software tool to help companies assess the combined effect of 38 decarbonisation measures – both technological and operational

13 14 Company Horizontal Collaboration Booker Group Plc ECR UK – Starfish project Kraft Foods Nestle UK Ltd Pilot survey 2009-10 Pepsico Food & Beverages Sainsbury’s Arla Foods ASDA Stores Ltd 27 Large FMCG Companies Participated 2010-11 Bacardi Brown-Foreman Brands Brakes Annualised Data Coca-Cola Enterprises Ltd No of No. of Pallets or No. of Vehicles Annual Tpt Colgate Palmolive (UK) Ltd No of Annual km No of Movements Pall Equiv or Full Veh CO2 Emissions Flows (millions) Depots Diageo Great Britain Limited /Year Moved/Year Equiv's (tonnes) Gerber Juice Company Ltd 47,104 9,772,164 126,681,239 1,184.982 271 6,765 1,120,200 H J Heinz Kellogg Marketing & Sales Co Kimberley Clark Annual Tonne Average length L’Oreal UK and Ireland km (billions) of haul (km) Marks & Spencer plc 10.63 124.2 Mars Molson Coors Brewing Company Musgrave Represents Palmer & Harvey McLane Ltd  £200 billion of UK turnover Procter & Gamble  8% of all UK road tonne-kms Tesco  6.3% of truck kilometres travelled Unilever UK United Biscuits Waitrose 24 (46%) warehouses fall within 9 zones A total of 271 warehouse locations with a 35 km radius

6 retailers account for 91 warehouses

18 manufacturers account for 137

3 wholesalers account for 43 Consolidation of Inter-regional Flows channelling flows through consolidation hubs in each region

Location of hubs optimised with respect to intra-regional flows

S C S D Region 1 Region 2 D C D D C D D C C S S Region 3 S S D D D C

Total Total Total Tonnes Cost Kilometres Hours of CO2 % saving for Part Load Movements Affected 11.7% 20.8% 6.1% 18.9% % saving over All Movements 2.6% 4.3% 1.7% 3.7% Cost Effectiveness of Reducing CO2e Abatement

of CO2e potential CO2e reduction

slope = cost / tonne of CO2e saved

Cost

Abatement average for other sectors?

of CO2e

freight transport?

Cost CO2 Abatement Potential and Costs : Sectoral Variations (idealised) A Agriculture Public services A A c Construction

c c

Private services Primary production Freight transport

A A A

c c c

Manufacturing Other utilities Power generation A A A

c c c Centre for Sustainable Road Freight Transport (CSRFT)

• Collaboration between Heriot-Watt and Cambridge Universities • Funded by Engineering and Physical Sciences Research Council and industrial consortium ( Trucks, DHL, Tesco, Wincanton, John Lewis, Goodyear etc) • Start date: October 2012 5 year programme

Contact details

Kühne Logistics University – The KLU Wissenschaftliche Hochschule für Logistik und Unternehmensführung Brooktorkai 20 20457 Hamburg E-Mail: [email protected] Website: www.the-klu.org

Logistics Research Centre Heriot-Watt University Edinburgh

[email protected] www.sml.hw.ac.uk/logistics