Freight Transportation and Environmental Efficiency: Going Beyond the ‘S’ Word

1. Freight Transportation and Environmental Efficiency: Going Beyond the ‘S’ Word Jean-Paul RodrigueAssociate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: ecojpr@hofstra.edu Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue

2. Containerization, Cold Chains and the “Flexibilization” of Supply Chains Langoustine (Scottish waters) Fishing Fishing Thailand Freezing Mechanical peeling Reefer (3 weeks) Maturation warehouse (3 weeks) Manual peeling Scotland Maturation in Reefer (3 weeks) Processing Processing Packaging Packaging Distribution Distribution UK Market

3. There is More than Meet the Eye…

4. About Freight Transportation …  Transport Geography and Freight Containerization and Economies of Scale UPS Willow Springs Distribution Center, Chicago

5. The Transport Geography Perspective Infrastructures Passengers Information Freight Interactions (Flows) Locations (Nodes)

6. Transportation and the Mobility of Passengers and Freight Commuting Shopping Recreation Commodity Chains Freight Share of total passengers or tons-km Trade Energy & Raw Materials Waste disposal Local distribution Business TourismMigration Passengers Distance

7. Performance Comparison for Selected Freight Modes Vehicle Capacity Truck Equivalency 1500 Tons 52,500 Bushels 453,600 Gallons 57.7 (865.4 for 15 barges in tow) Barge 100 Tons3,500 Bushels30,240 Gallons 3.8 Hopper car 10,000 Tons350,000 Bushels3,024,000 Gallons 384.6 100 car train unit 26 Tons; 910 Bushels7,865 Gallons 9,000 for a tanker truck 1 Semi-trailer truck 2,116 5,000 TEU Post-panamax containership 9,330 300,000 tons 2 million barrels of oil VLCC 124 tons 5 747-400F

8. The Regina and Emma Maersk 6,700 TEU 14,500 TEU

9. About Transport and the Environment …  The Environmental Dimension of Transport Transport and Energy Sustainable Transportation Translisft crane, NS Rutherford yard, PA

10. Environmental Dimensions of Transportation Other Social or ecological effects Habitat changes Infrastructure construction and maintenance Vehicle and parts manufacture Travel Vehicle maintenance and support Disposal of vehicles and parts Land Use Emissions Ambient levels Economics Health, environmental or welfare effects Exposure Causes Activities Outputs End Results Relationships Quantification Policy Making

11. Transportation Systems and the Environment Centralized network Diffused network Network Localized emissions Energy efficient Diffused emissions High energy use Level of emissions Level of energy consumption Traffic Nature of emissions Nature of energy consumption Mode

12. Emissions from Freight Modes (gram / ton-km)

13. Energy Efficiency by Transportation Mode 10 Helicopter Worst performance Car Supersonic plane Jet plane Propeller plane Bus 1 Train Cargo plane Gas pipeline Truck Bicycle .1 Energy costs Container ship Freight Oil Pipeline Passengers Train .01 Tanker Best performance Speed (m/sec) .002 10 30 100 300 1000

14. Retail Motor Gasoline Prices in Selected Countries, 1990-2006

15. Costs of Shipping a 40 foot Container to New York

16. Sustainable Transportation (Nonesense) Sustainable Development Sustainable Transportation Modes Infrastructures Logistics Environment Climate Change Air quality Noise Land Use Waste Economy Growth Jobs and Prosperity Fair Pricing Competitiveness Choice Society Safety Health Disturbance Access Equity

17. Green Logistics  Logistics and Reverse Distribution Paradoxes of Green Logistics APL “Australia” entering San Francisco Harbor

18. Green+Logistics or Green/Logistics? Green Logistics • Environmental efficiency • Recycling • Compliance • Distributional efficiency • Save time / money Convergence?

19. Forward and Reverse Distribution Producers Distributors Consumers Suppliers Recyclers Collectors Forward Channel Reverse Channel

20. The Paradoxes of Green Logistics

21. Costs Paradox: Logistical Improvements, Manufacturing Sector, 1960s to 2000s

22. Time Paradox: Average Order Lead Times of European Manufacturers, Wholesalers, and Retailers

23. Network Paradox Hub Feeder Environmental Pressure

24. Freight Traffic at the World’s Largest Airports, 2005

25. Rank / Size of the 50 Largest Container Ports, 1980-2005 (TEUs)

26. Paradox: Reliability p(T’) p(T’a) Ta’ + σ Ta’ - σ T’0 T’a

27. Paradox: Warehousing Supply Chain Management Material flow (delivery) Customers Information flow (order) Raw Materials Distribution Center Manufacturing Retailers Delivery units for finished goods Delivery units for parts Assembly and warehousing Moving storage units Moving storage units

28. Characteristics of Large-scale Distribution Centers

29. Typical Freight Distribution Cluster, Piscataway, New Jersey

30. Logistics and E-commerce Supply chain Supply chain DC E-Retailer Retailer DC Traditional Logistics E-Logistics Customers Customers

31. Environmental Vicious Circle of Logistics Application of logistics More ton-km transported Activities less Spatially constrained Energy consumption Pollutant Emissions Space consumption

32. City Logistics Central City DC Urban Terminal

33. Conclusion • Freight transportation is profit driven • Any strategy that promotes efficiency will be considered. • So far, logistics has left a paradoxical environmental impact. • The current context may lead to several innovations. • Sustainability • A vague and mostly inapplicable concept. • Could lead to wrong strategies and technologies. • Lead to unintended consequences? • Policy driven or market forces?