.svg){kind=small}
Starting from the end of 2023 Suez Canal Trade Lane/Bab el Mandab Strait blockage sent shockwaves through the global supply chain, causing significant disruptions and reducing the overall available container supply due to longer journeys. As we continue to navigate the risks of US/EU-Asia tariff wars and a surge in demand to pull goods faster from China, port congestion remains a critical issue. Additionally, potential further disruptions loom on the horizon, such as the risk of strikes at Eastern Coast ports due to objections to the automation of terminal stevedore activities.
While the immediate consequences of such events are evident, the environmental impact often remains less visible. This is where Shippeo steps in with our innovative partnership with Searoutes and our approach to CO2 emissions tracking using real-time visibility data.
CO2 Data from Container Drilled Down to SKU in Customer Systems
Shippeo and Searoutes have taken CO2 emissions calculation to a new level by providing detailed insights at the container level applying GLEC compatible automatic calculation; while being fully audit friendly. For example, this includes information about the vessel’s schedule, speed, fuel type, and itinerary, including detours like the one via the Cape of Good Hope. Shippeo is also integrating various data sources such as Purchase Orders (POs), Sales Orders (SOs), Stock Keeping Units (SKUs), and European Article Number (EAN) codes, which enriches shipper systems with a comprehensive view of the environmental impact of each container shipment from end to end, linking the ocean leg with pre-carriage and on-carriage legs.
This level of granularity allows businesses to understand not only the overall carbon footprint of their shipments but also the specific impact of individual products. For instance, a retailer can now determine the CO2 emissions associated with a particular pair of shoes shipped from Asia to Europe, factoring in any detours like the Suez Canal incident.
This data is invaluable for businesses aiming to understand the full impact of supply chain disruptions on their sustainability goals. It enables them to make informed decisions about alternative routes, transportation modes, and even product sourcing, ultimately contributing to a greener supply chain.
.gif)
Highlighting the Importance of Accurate and Granular CO2 Emissions Data
The Suez Canal detour may have been a temporary setback, but it has underscored the importance of accurate and granular CO2 emissions data. For some Shippers, the CO2 equivalent intensity reveals that this detour has led to an average 15-20% increase in emitted CO2 on all lanes confounded. And on some lanes, with up to 50% increase compared to Suez Canal routing (ex: Mediterranean ports) using the same calculation model that considers the exact vessel route (instead of averages based on historical trips).
Thanks to Shippeo and Searoutes, Shippers now have the tools they need to identify which lines and lanes offer the most efficient vessels, allowing for greener bookings. By leveraging this detailed emissions data, companies can better navigate the complexities of global logistics while enhancing their sustainability efforts.
Conclusion
As we move forward in a world where supply chain disruptions are increasingly common, having access to precise and detailed CO2 emissions data is crucial. Shippeo, in partnership with Searoutes, provides businesses with the insights they need to manage their environmental impact effectively. Together, we are driving the future of sustainable logistics, helping companies achieve their sustainability goals while maintaining operational efficiency and customer satisfaction.
Don’t miss our new report, "Building Sustainable Supply Chains: A Guide for Procurement Professionals," available for download below.
