The Perfect Storm: Global Container Congestion, China’s New Year Rush, and Why Visibility is Key

It’s the logistics equivalent of the perfect storm: Chinese factories are racing to ship goods before the New Year holiday. Add in the looming spectre of US import tariffs and some nasty winter weather, and you’ve got container ports across Asia, Europe, and North America at a breaking point.

According to Linerlytica, global port congestion has hit a three-month high, with an estimated 3.3 million TEU – nearly 11% of the global container fleet – stuck at ports. China’s Yangtze River and Pearl River Delta ports are experiencing unprecedented congestion. Why? A surge of cargo trying to beat the holiday lull and potential tariffs on Chinese imports to the US.

Take Yantian, for example. This southern port, responsible for a third of Guangdong’s international trade and 25% of China’s exports to the US, has increased its daily cap on container handling by 15%, up to 15,000 units per day. In 2024, Yantian hit record volumes of 17.37 million TEU, reflecting a 7% year-on-year increase, while neighbouring Shenzhen saw exports climb 15% to a staggering CNY2.81 trillion (£303 billion).

But it’s not just China. Severe weather across the US Atlantic coast and English Channel is delaying vessels. UK ports like Felixstowe, Southampton, and London Gateway have all faced closures, while industrial action in French ports and at ECT Rotterdam is adding to the chaos.

The Bigger Picture: Visibility and the Climate Connection

Here’s the kicker: this isn’t just a logistical headache; it’s a data problem. Businesses – especially BCOs (Beneficial Cargo Owners) and LSPs (Logistics Service Providers) – are flying blind without real-time supply chain visibility. The lack of accurate data means critical decisions are being made in the dark.

Imagine the power of a dashboard that not only tracks shipments in real time but also layers in climate impact insights. How would that change your strategy? What if you could anticipate disruptions like pre-holiday rushes, tariffs, or weather delays, and proactively re-route cargo or manage inventory?

This isn’t a fantasy. Supply chain visibility software is the next frontier for logistics, helping businesses not only adapt to disruptions but also minimise their environmental impact. With container fleets jammed at ports and emissions ticking up, the need for actionable data has never been clearer.

The takeaway? The supply chain industry is overdue for a digital transformation. Those who embrace it will thrive. Those who don’t? They’ll drown in the perfect storm.

Freight Markets in Flux: Why Excess Inventory Could Be Your Opportunity

Retail inventories are soaring, freight markets are softening, and it’s a perfect storm for supply chains. If you’re not paying attention, the next few months could wreak havoc on your logistics, profitability, and sustainability goals. But with the right tools and insights, this challenge can be turned into an opportunity.

The Numbers Don’t Lie

Retail inventories in the US are breaking records. According to Sea-Intelligence, November 2024 inventory levels were $30.2 billion higher than the norm. Alan Murphy, CEO of Sea-Intelligence, called it “the largest upwards deviation we have seen since the financial crisis.” Inventories peaked in September, exceeding the long-term trend by 3.1%, and while there was a slight dip to 3% by November, the excess remains significant.

What’s causing this? It’s a cocktail of factors. Retailers are hedging against potential tariffs, managing disruptions like the ILA strike, and overcorrecting after pandemic-era shortages. Philip Damas of Drewry pinpointed three culprits: Chinese New Year, pre-strike cargo rushes, and sky-high inventory levels compared to last year.

And the costs are piling up. Target’s 2022 initiative to “right-size” inventory is still falling short. Jefferies noted that early inventory build-ups, aimed at mitigating East Coast port disruptions, shaved nearly one percentage point off its holiday profit margins. Meanwhile, Alix Partners warned that average “days on hand” for US retailers have risen by 12% since 2021.

A Vicious Cycle or a Strategic Opening?

Excess inventory doesn’t just dent profits; it ties up capital, increases holding costs, and inflates the carbon footprint of supply chains. Alix Partners cautioned that many companies underestimate these holding costs because decision-making is siloed between inventory planners and financial managers.

But let’s flip the script: this isn’t just a crisis—it’s a wake-up call for smarter supply chains. Imagine having real-time data insights that enable Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to anticipate disruptions, optimise routes, and fine-tune inventory decisions.

The Case for Visibility Software

Visibility software is no longer optional; it’s mission-critical. With tools that integrate real-time supply chain and climate impact data, businesses can assess the full cost of inventory decisions. This empowers leaders to counteract challenges like tariff impacts, inventory build-ups, and market softness, making business-critical decisions with confidence.

This isn’t just about saving money. It’s about future-proofing. Smarter supply chains mean fewer carbon emissions, better margins, and happier customers. The alternative? More missed earnings reports, like Target’s, and a higher environmental toll.

The message is clear: the time to act is now. Visibility, agility, and sustainability aren’t just buzzwords; they’re the foundations of a thriving supply chain in 2024 and beyond.

The Suez Conundrum – Navigating the Future of Shipping Amid Overcapacity and Uncertainty

The maritime industry is bracing for a seismic shift as carriers weigh the decision to revert to the Suez Canal after months of Cape of Good Hope diversions. This seemingly simple change has profound implications, not just for freight rates but for the entire global supply chain.

Why? Because when the Suez becomes the norm again, the reduction in voyage tonne-miles will expose the glaring overcapacity in the market, driving freight rates down—particularly on the Asia-Europe trades. According to Drewry, rerouting via the Cape reduced effective capacity by approximately 9%, a key factor in carriers posting robust quarterly profits over the past year. But now, the industry stands on the brink of a sharp correction.

Redefining the Market: Overcapacity and Pricing Challenges

The Global Shipper’s Forum (GSF) and MDS Transmodal estimate that if Red Sea transits resume, 70 ships with around 500,000 TEU capacity will become surplus. This surplus creates a new headache for shippers and carriers alike, as freight rates plummet and market volatility takes centre stage.

Matthew Gore, partner at HFW, underscores the dilemma shippers face in navigating contract negotiations. A “wait-and-see” approach sounds safe but leaves businesses vulnerable. Spot rates, predicted to trend downward but remain volatile, provide little reassurance. Gore’s advice? Consider index-linked contracts or innovative agreements like “twin-rate contracts”—a Cape rate for the longer route and a reduced Red Sea rate once services resume.

James Hookham of GSF calls twin-rate contracts a bold but necessary innovation, reflecting resilience planning seen in other sectors. Yet even he acknowledges the challenge of securing commitments in an environment as turbulent as 2025’s freight market is predicted to be.

The Critical Role of Real-Time Supply Chain Visibility

Here’s the truth: regardless of Cape or Suez, shippers and Logistics Service Providers (LSPs) need more than rate flexibility to thrive—they need visibility. Implementing supply chain and climate-impact visibility software isn’t just a nice-to-have; it’s a survival tool.

Such software provides real-time data insights, enabling Beneficial Cargo Owners (BCOs) and LSPs to make business-critical decisions amid unpredictable shifts in routes, rates, and capacity. It allows businesses to map out the full scope of their supply chains, anticipate bottlenecks, and adapt to sudden disruptions. Whether it’s gauging the impact of returning to Suez or managing overcapacity, having a clear view of the numbers is no longer optional—it’s mission-critical.

As Hookham aptly puts it, “resilience planning” isn’t just for major crises; it’s for anticipating and navigating the small, compounding challenges that define modern shipping. If transparency and data-driven decisions can protect supply chains from the ripple effects of Suez shifts, the industry has no excuse to hold back.

Final Thoughts: Innovate or Be Left Behind

The future of shipping contracts, from twin-rate deals to index-linked agreements, will be defined by innovation and transparency. But to make these strategies work, the foundation must be a visible, measurable, and data-driven supply chain. Companies that embrace real-time insights will lead; those that cling to traditional models will struggle to keep up.

As 2025 looms, the industry’s leaders won’t just be those offering lower rates. They’ll be the ones offering certainty in an uncertain world.

The Ceasefire Mirage – Shipping, Strategy, and the Critical Need for Supply Chain Visibility

The world of logistics is no stranger to disruption, and the Red Sea’s troubled waters are no exception. As reports emerge of a potential ceasefire in Gaza, speculation mounts that the Red Sea and Suez Canal routes may soon reopen for global shipping. But let’s not be hasty. A lull in Houthi attacks is just that – a lull. Experts caution against overconfidence, pointing out that the Houthis’ disruptive leverage over global trade might be too tempting for the group to relinquish.

A Fragile Path to Peace

Houthi spokesperson Mohammed Abdul Salam made waves on X, framing the ceasefire as a potential turning point. Yet, his declaration also highlighted the group’s broader regional aspirations, leaving many to wonder if hostilities in the Red Sea are truly over. Lars Jensen, CEO of Vespucci Maritime, offered cautious optimism, suggesting Suez Canal transits might resume as early as February, with sporadic crossings before that. However, industry veterans like Michael Yarwood of TT Club remind us that shipping companies may be in no rush. His reasoning? A cautious market and slow-moving insurance adjustments.

Lessons from the Suez Blockage

Yarwood’s point holds weight. The six-day Suez Canal blockage of 2021 saw shipping routes bounce back with surprising speed. But this is different. After 15 months of disrupted Red Sea routes, the logistical, economic, and psychological toll on shippers and cargo owners alike won’t dissipate overnight. Building confidence takes time, especially when the stakes involve insurance premiums, geopolitical tensions, and the broader supply chain.

The Tech Imperative: Real-Time Visibility

What’s the takeaway for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs)? Two words: data visibility. In a world where geopolitical instability can upend routes overnight, the ability to see and act on real-time supply chain data is non-negotiable. Climate impact, freight delays, and rerouting costs can no longer be reactive challenges – they require proactive solutions. Advanced supply chain software is the strategic advantage here, equipping businesses with the insights needed to make critical, time-sensitive decisions.

The numbers don’t lie. DP World’s Modal Shift Programme reduced carbon emissions by 4,500 tonnes through better rail freight utilisation. Now imagine that same strategic insight applied across disrupted shipping lanes. Real-time visibility software doesn’t just safeguard supply chains – it creates opportunities for resilience, efficiency, and sustainability.

The Bigger Picture

Let’s not overlook the broader implications. This ceasefire – if formalised – would represent a remarkable shift in Israeli policy, one met with internal political resistance. But even then, a peaceful Red Sea remains speculative. For BCOs and LSPs, the real victory lies in building resilient, adaptable systems that thrive despite disruption. Visibility is no longer optional; it’s existential.

As the Red Sea drama continues, remember: a calm sea today doesn’t mean smooth sailing tomorrow. For the logistics industry, the focus must shift from reacting to anticipating – and that begins with the right tools.

Embracing Volatility – How Data Is Revolutionising Freight Procurement

Market volatility has flipped the logistics script. Shippers have been forced to rethink how they procure ocean and air freight, moving towards greater flexibility, resilience, and—most importantly—data-driven decision-making. This isn’t just a tweak to existing strategies; it’s a full-blown reimagining of freight procurement in an era of disruption.

Let’s face it: we’re navigating uncharted waters. Rate fluctuations, capacity squeezes, and ever-shifting demand patterns mean business-as-usual is no longer an option. Real-time freight intelligence is the superpower shippers—and their Logistics Service Providers (LSPs)—need to thrive, not just survive. It’s not just about rates and spreadsheets; it’s about building resilient supply chains that can weather any storm while maximising ROI.

1. Negotiating with Precision: Smarter, Data-Driven Decisions

ROI Impact: Competitive rates. No overpayments.

Real-time freight intelligence keeps you informed about rate trends, capacity, and carrier pricing tactics. Armed with data, shippers can challenge inflated premiums and negotiate from a position of strength. The result? Big savings and smarter partnerships, with cost reductions of up to 30% reported in certain cases, equating to millions saved annually on key shipping lanes.

2. Forecasting: Protecting Your Budget (and Your Sanity)

ROI Impact: 50% better budget accuracy, as reported by a Fortune 500 company.

Cost forecasting isn’t glamorous, but it’s critical. Freight data gives you visibility into surcharges, spot rates, long-term agreements, and market trends, helping you plan with laser-sharp accuracy. This isn’t just saving pennies—it’s about sidestepping financial landmines that blow up your P&L.

3. Benchmarking: The Confidence to Demand Better

ROI Impact: Better service. Better terms.

Comparing your performance and costs against market benchmarks ensures you’re not leaving money on the table or settling for subpar service. Tools that aggregate hundreds of millions of rates empower shippers and LSPs to push for better service guarantees, lower surcharges, or contractual improvements. With this collective intelligence, negotiation is no longer a guessing game; it’s a precise, data-driven process.

4. Reacting in Real Time: Stay Agile in Chaos

ROI Impact: Losses minimised, decisions aligned.

In logistics, chaos is inevitable. But reacting to it doesn’t have to be. When capacity dries up or rates spike, real-time intelligence lets you pivot on a dime—securing alternative carriers or adjusting strategies while keeping costs in check.

This level of visibility aligns teams across finance, operations, and procurement, ensuring everyone is on the same page when the heat’s on. Quick decisions, fewer silos, smoother operations.

5. Better Relationships: Collaboration That Works

ROI Impact: Long-term savings, future-proof supply chains.

Freight procurement is still a relationship game, but volatility strains even the strongest ties. Real-time data can shift the dynamic by providing transparency, neutrality, and shared insights. This fosters trust, enabling innovative collaborations like capacity-sharing agreements, dynamic pricing, or joint sustainability initiatives.

Instead of fighting over margins, shippers and LSPs can work together to tackle the big stuff—like reducing emissions or designing supply chains that can withstand future shocks.

Why Real-Time Freight Intelligence Is Non-Negotiable

For most shippers, data has historically been a pre-tender tool. But in today’s climate, relying on static benchmarks is like navigating a storm with last week’s weather report. From 2019 to 2024, we’ve seen how rapidly markets can shift. Waiting until the next contract cycle to adjust is a recipe for disaster.

Data is the compass shippers and LSPs need—not just during tender negotiations, but as a constant tool for building resilient, sustainable supply chains. It’s time to integrate real-time freight intelligence into every aspect of your strategy. With dynamic insights, you can outmanoeuvre uncertainty, build flexibility, and create lasting value for your business.

Asia’s Rising Stars: Vietnam, Thailand, and South Korea Ride the Wave of US Trade Policy Shifts

The planned tariffs on Chinese products by US president-elect Donald Trump are reshaping global trade flows, boosting containerised imports from Vietnam, Thailand, and South Korea. These nations have experienced remarkable growth in exports to the US since 2017, presenting both opportunities and challenges for supply chain resilience and climate-conscious operations.

According to a Linerlytica report, Vietnam’s container exports to the US exceeded 2 million TEU in the first 10 months of 2024, more than double the volumes of 2017. Notably, Q2 2024 saw a 41% year-on-year increase in exports, primarily manufactured goods, as businesses continued to diversify supply chains away from China. Vietnam’s appeal lies in its educated workforce, low operational costs, and improving US diplomatic relations.

Thailand has also emerged as a significant player, tripling its exports to the US since 2017. The first 10 months of 2024 recorded approximately 900,000 TEU, with October alone showing a 25% year-on-year increase. Driven by farm and food products, Thailand’s trade policies have further cemented its position as a key exporter, with domestic partnerships benefitting US firms operating in the country.

South Korea’s containerised exports to the US exceeded 1 million TEU between January and October 2024, compared to around 600,000 TEU in 2017. Electrical appliances, machinery, and equipment drove this growth, according to analyst Tan Hua Joo.

Meanwhile, China’s share of US imports from Asia has dropped from 70.4% in 2017 to 58.9% in 2024, reflecting a significant shift. Yet, China remains the largest origin country for containerised imports, even as Vietnam, South Korea, and Thailand take the lead in volume and market share gains.

The Role of Visibility in Supply Chain Management

This rapid shift in trade dynamics underscores the growing need for supply chain visibility and climate impact software. As Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) navigate complex, shifting trade patterns, real-time data insights are becoming indispensable. These tools enable stakeholders to make business-critical decisions, mitigating risks such as tariff impositions and environmental impacts, while optimising the supply chain for efficiency and sustainability.

For instance, Vietnam’s efforts to avoid trade sanctions, such as importing US soybeans and aircraft, highlight how trade policy volatility can impact supply chains. With visibility tools, LSPs can respond to such challenges by forecasting disruptions and adapting their logistics strategies.

Linerlytica notes that while the proposed 10% tariff on Chinese goods is less severe than the 60% initially suggested, the policy still has cascading effects. Vietnam, South Korea, and Thailand, as the fastest-growing exporters, stand to gain. However, the unpredictability of these trade measures emphasises the importance of advanced analytics to support resilient, climate-conscious supply chains.

Hapag-Lloyd Doubles Down on Green Methanol for a Decarbonised Future

German shipping giant Hapag-Lloyd has signed a ground-breaking agreement with China’s Goldwind to secure 250,000 tonnes of green methanol annually, adding a significant boost to the 500,000-tonne Maersk agreement made in late 2023. This commitment reinforces Hapag-Lloyd’s position at the forefront of sustainable shipping and builds momentum for decarbonisation efforts across the maritime industry.

The agreement, spanning more than a decade, will see supplies of green methanol begin in 2026. The initiative forms part of Hapag-Lloyd’s Strategy 2030, a comprehensive plan to meet the Paris Agreement’s 1.5-degree climate target. CEO Rolf Habben Jansen emphasised the company’s commitment to sustainable investments, stating:

“With the agreement, we are securing a significant proportion of our requirements for green fuels. This is a critical step toward our ultimate goal of achieving net-zero fleet operations by 2045.”

Hapag-Lloyd’s strategy includes retrofitting methanol dual-fuel capabilities to five vessels, funded by green-insetting premiums paid by environmentally-conscious customers. This move not only aligns with global decarbonisation goals but also positions Hapag-Lloyd to adapt to future EU renewable fuel quotas, known as RFNBO obligations, under the FuelEU Maritime framework.

A Balancing Act in Maritime Fuels

While LNG continues to gain traction among top competitors like Maersk and CMA CGM, Hapag-Lloyd’s pivot to green methanol signals a calculated hedging strategy. The flexibility to retrofit LNG-fuelled vessels to methanol provides a future-proof option should market dynamics or regulatory landscapes shift.

The challenges of retrofitting were exemplified by Maersk’s Halifax project, which took eight months of off-hire time and a dramatic 15-metre vessel extension. Despite these complexities, methanol retrofits could offer smoother transitions compared to conventional ships.

Hapag-Lloyd’s investments come amid concerns about green methanol’s long-term scalability due to limited biogenic CO2 feedstocks. However, these constraints are dwarfed by the immediate issue of securing start-up capital to scale production capacity.

Real-Time Insights for Smarter Supply Chains

The shift towards alternative fuels highlights an emerging need: real-time visibility into supply chain emissions and climate impacts. As companies like Hapag-Lloyd blaze trails in decarbonisation, Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) must adapt quickly. Visibility software can empower stakeholders with real-time data insights to make critical decisions, from route optimisation to fuel choice, mitigating disruptions and aligning supply chain operations with sustainability targets.

Hapag-Lloyd’s dual-fuel strategy is not just about compliance; it represents a blueprint for how liner shipping can transform through technology and collaboration. The adoption of visibility tools will ensure that as fuel technologies evolve, supply chains remain resilient, transparent, and aligned with global decarbonisation goals.

Rolf Habben Jansen summed it up best:

“It is and remains our ambition to play a leading role in the transformation of the liner shipping industry.”

Evergreen’s Ambitious Growth: Expanding Capacity and Embracing Innovation

Taiwanese shipping giant Evergreen has made waves in the logistics industry by announcing a massive order for 60,500 new containers, valued at nearly $187 million. The latest filings to the Taiwan Stock Exchange detail that 23,000 containers will be produced by CXIC Group, 21,000 by Guangdong Fuwa Equipment Manufacturing, and 16,500 by Dong Fang International, a subsidiary of Cosco Shipping Development.

This marks Evergreen’s second major capital investment of the year, building on its $348 million order in June for six 2,400 TEU methanol dual-fuelled ships from CSSC Huangpu Wenchong Shipbuilding and 50,000 containers from top Chinese manufacturers, including Dong Fang and China International Marine Containers, at a cost of $162 million.

Adding to its forward momentum, Evergreen recently sought quotes from major shipbuilders for 11 methanol dual-fuelled 24,000 TEU ultra-large container vessels, demonstrating its commitment to sustainable shipping solutions.

Responding to Challenges: Growth Amid a Supply Chain Crisis

The timing of these investments is critical. Evergreen has linked its increasing container inventory to its expanding fleet. With the Red Sea crisis disrupting equipment supply chains and driving container freight rates to record highs, container manufacturers—primarily in China—are operating at full capacity, with many booked out until year-end. This highlights the urgent need for resilience in global shipping operations.

Evergreen’s financial results reflect its ability to thrive amidst these challenges. In the first nine months of 2024, the company reported net profits tripling year-over-year to $3.5 billion, driven by 68% revenue growth to $11 billion.

A Technological Leap Forward

On Friday, Evergreen chairman Chang Yen-I, alongside Taiwan’s transport minister and Kaohsiung officials, officially inaugurated Kaohsiung port’s Terminal 7, Taiwan’s first fully automated container terminal. Built over four years at a cost of $1 billion (with the government investing $642 million), the terminal spans 149 hectares along 2.4km of coastline and features five deepwater berths capable of accommodating four 24,000 TEU vessels simultaneously. With an annual processing capacity of 4.5 million TEU, this state-of-the-art facility will serve as Evergreen’s strategic home base in Kaohsiung.

A Call for Greater Supply Chain Visibility

As Evergreen scales its operations and invests in sustainability, the global shipping industry faces growing complexities. The Red Sea crisis and fluctuating freight rates underline the need for real-time supply chain visibility. Implementing advanced software solutions can provide Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) with critical data insights, enabling them to make informed decisions that mitigate risks, optimise operations, and adapt to market disruptions.

The integration of such technologies is no longer optional—it’s essential for building resilient and sustainable supply chains. With climate impacts and market volatility reshaping global trade, real-time visibility empowers stakeholders to address both environmental challenges and operational inefficiencies effectively.

Evergreen’s strategic investments signal an exciting future for shipping, but they also highlight the industry’s pressing need for innovation—not just in fleet and terminal upgrades but also in how we manage and monitor the flow of goods across the globe.

Shanghai’s Bold Green Shipping Goal: Transforming the World’s Busiest Port

Shanghai, China’s largest metropolis and home to the world’s busiest port, has set an ambitious course to become a global centre for green shipping. As climate pressures intensify, Shanghai plans to build its capacity for low-carbon bunkering, preparing for anticipated emissions mandates from the International Maritime Organization (IMO). The city aims to supply over 1 million tons of low-carbon fuel annually by 2030, laying the groundwork for what could be a major shift in Asia’s maritime fuel market.

Rising to the Challenge of Decarbonisation

China’s green pivot comes amid growing competition with Singapore, Asia’s current bunkering hub, which also has a target of 1 million tons of low-carbon methanol by 2030. Singapore remains the world’s leading supplier of bunker fuel, providing over 50 million tons last year alone, compared to China’s 20 million tons in 2023. While the transition to alternative, hydrogen-based propellants such as methanol and ammonia is expected to take years, Shanghai’s focus on renewable energy-powered solutions may give it a strategic edge.

Building a Greener Maritime Supply Chain

China’s robust investments in solar and wind power position it strongly to lead in hydrogen-based fuels. Industry giants are mobilising: Longi Green Energy Technology Co., a top solar panel producer, has partnered with A.P. Moller-Maersk A/S to supply bio-methanol, while wind turbine manufacturer Goldwind Science & Technology Co. has launched projects for green ammonia and methanol valued at 200 billion yuan ($28 billion). The China Classification Society, a key maritime standards authority, projects that China will be able to supply 161 million tons of green ammonia and 143 million tons of green methanol by 2050—an impressive leap from current capacities.

This shift is crucial not only for emissions reduction but also for global supply chains navigating decarbonisation. With this rapid transition, Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) will face increasing challenges. As China builds this green energy capacity, real-time visibility solutions that monitor fuel sources, emissions, and climate impact across supply chains will be critical. Access to data insights can empower BCOs and LSPs to make informed decisions, mitigating potential disruptions and enabling strategic adjustments as mandates evolve.

The Long Game: Why Visibility Software Matters Now

With Shanghai’s green ambitions, the need for visibility software becomes evident. Real-time climate impact and supply chain data will empower stakeholders to adapt to this shift, manage costs effectively, and align with stricter global standards. As Shanghai steps into a pioneering role in green shipping, it presents a compelling case for embracing digital solutions that provide transparency and enable proactive, data-driven decisions in the journey towards a cleaner maritime industry.

How Air Cargo Can Tackle the Carbon Challenge: The Role of Digitised Community Systems

Reducing CO2 emissions across the logistics industry is a pressing global priority, with governing bodies, regulatory frameworks, and corporate ESG standards increasingly focused on reducing carbon footprints. Yet, a vital question remains: how can air cargo—a rapidly growing sector—minimise its environmental impact? Aviation is the fastest-growing mode of transport, and in 2022 alone, it accounted for 2% of global energy-related CO2 emissions—a significant figure for a single industry.

To address these challenges, infrastructure providers are under increasing pressure to invest in sustainable, digital solutions that enable greater visibility and oversight across supply chains. One of the most promising solutions is the Airport Cargo Community System (ACS), which connects air cargo operators through a unified platform that enables seamless data sharing. This supports greener decision-making, more efficient operations, and reliable CO2 emission reporting.

How Airport Cargo Community Systems Drive Sustainable Logistics

Airport Cargo Community Systems (ACSs) act as the bridge between landside and airside operations, providing a centralised platform where customs agents, logistics service providers (LSPs), and cargo handlers can access and share real-time data. ACSs streamline efficiency across all points of cargo transit, from customs processing to final delivery, allowing stakeholders visibility over the entire process. This connected approach reduces delays, minimises redundant paperwork, and optimises routes—significantly lowering fuel consumption and carbon emissions.

Through ACSs, LSPs and other stakeholders can make swift, data-driven decisions that directly support sustainable supply chain practices. With real-time insights into cargo flow and emissions, operators are better equipped to meet compliance requirements, improve ESG reporting, and achieve carbon reduction goals. ACS technology drives route optimisation, paperless trade processes, and reduces congestion at loading and offloading points, allowing end customers and shippers confidence that their goods are transported in an environmentally responsible way.

Expanding Digital Community Systems Across the Logistics Industry

While ACSs are transforming air cargo, the concept of community systems has applications beyond aviation. In ports, digital systems such as Port Community Systems integrate environmental monitoring, enabling real-time tracking of emissions, fuel use, and equipment efficiency. Community systems are increasingly being explored for “sea-air corridors” that promote multimodal transport, linking sea, road, and rail operations to further reduce carbon emissions across logistics modes. By digitally connecting these sectors, stakeholders can create transparency and sustainability far beyond a single mode of transport, enabling informed, environmentally conscious decisions throughout the logistics network.

The Future of Sustainable Logistics: Real-Time Visibility and Data-Driven Decisions

The future of sustainable logistics hinges on visibility. With platforms like ACS, Beneficial Cargo Owners (BCOs) and LSPs can access critical real-time data insights, empowering them to make business-critical decisions that counteract supply chain disruptions and mitigate environmental impact. By embedding data transparency into everyday operations, ACS and other community systems are shaping a greener, more responsible logistics future.