Sustainable supply chains are rising on the agenda across industries. The food and drink sector has a substantial carbon footprint, with research suggesting food production is responsible for 26% of the world’s greenhouse gas emissions. The industry is also especially susceptible to the impacts of climate change, with global warming posing a growing threat to agriculture and crop availability.
While many in the industry wish to prioritize sustainability, balancing carbon emission reduction with cost and logistics challenges associated with transporting food can be challenging as companies navigate complex supply chains.
Rick LaGore, co-founder and CEO at InTek Freight & Logistics spoke with us about how the implementation of temperature controlled intermodal transport can help reduce carbon emissions while enabling manufacturers to prioritize efficiency and cost.
- How would you characterize the impact of increasing sustainable regulations on the food industry?
The US is shifting towards a more eco-friendly and transparent business landscape, and sustainability regulations are becoming more common as expectations from consumers and investors change. People want to know the eco credentials of the products they are purchasing as the world grows more environmentally conscious, and so organizations need transparent supply chains that allow consumers to make informed choices.
The food and beverage industry does face some unique supply chain challenges, so adding sustainable practices to the list of considerations can feel complex. Like other products, food and beverage supply chains are susceptible to external disruptions, but due to the perishable and time-sensitive nature of these goods, any issues can lead to more significant losses and shortages. Unlike some other forms of freight, temperature control is a key consideration, and time efficiency is paramount.
While managing these considerations can make it seem challenging to implement sustainable practices in addition, there are changes, such as the use of intermodal transport, that reduce emissions while prioritizing temperature control and time efficiency.
- How significant is food transportation in the sustainability of food and beverage supply chains?
While food travels to the US from across the world using different modes of transportation, domestically the tilt is heavily towards trucks, accounting for about 70% of food transportation with railway coming in a distant second at 17%.
Heavy-duty trucks are the fastest-growing contributor to freight emissions, notably air pollution and emission intensity which is exacerbated by traffic congestion and idle vehicles. Adopting other modes of transportation that reduce the number of trucks on the road is key, but often people are unfamiliar with the benefits that temperature controlled intermodal transportation offers.
- Can you tell us more about the environmental benefits of intermodal?
Intermodal transport reduces the carbon footprint of freight transportation by 60% compared to trucking, making it highly effective for environmental sustainability.
This mode of transport employs railroad for long-haul transportation, with trucks handling the short-haul portion to move cargo without directly handling the goods inside. It has a far lower environmental impact than over the road and air cargo, while still offering reliable delivery times and refrigerated options. One intermodal train can transport the same amount of goods as 280 trucks, removing these trucks from the road. This not only cuts down on emissions but also eases traffic congestion.
Temperature-controlled intermodal, and any temperature-controlled option, not only works for refrigerated and frozen items, but also for higher temperatures. Therefore, it’s basically whatever temperature is needed to maintain product integrity. Considering intermodal for a variety of food and beverage freight when timing allows will allow businesses to reap these environmental benefits while also often saving on cost. Effective planning can also help shippers identify the most energy efficient route for cargo that will ensure food is still delivered within a specific time frame to ensure integrity. Proper planning will help to avoid scrambling for an expedited shipment with a higher carbon footprint when products could have taken another route and still meet delivery requirements.
- How would you address the cost concerns associated with sustainable practices?
Many may associate the implementation of sustainable practices with high cost, but options such as intermodal transport are both green and cost-effective.
Intermodal brings with it 15% to 18% lower freight transportation costs compared to truckload options on the same freight corridors. In the long term, choosing green transportation solutions mitigates risk of fines/penalties. As environmental impact regulations become more stringent, businesses that integrate sustainable supply chain solutions will find it easier to comply with emissions standards and other environmental requirements.
- Where would you advise shippers to begin their sustainability journey?
As managing complex supply chains can be a challenge, outsourcing logistics to a third party can make it much simpler to plan journeys.
Finding partners who have experience putting sustainability into practice, for example, those who are EPA SmartWay certified, will put you on the right track towards sustainability.
