Shippers are using new technology and smarter logistics to achieve previously unattainable financial and carbon savings, according to a major new report.

Decisions on where products are made and stored, how they are designed and packaged, and how much time is allotted for transit have a tremendous impact on carbon efficiency, concluded the study by US campaign group Environmental Defense Fund (EDF).

The report calculated that the global freight transportation and distribution system accounts for nearly three billion metric tons of carbon emissions each year, equivalent to more than 700 coal plants or the combined output of Japan, Germany, Canada and Mexico.

And this is forecast to rise: in the US, emissions from freight are projected to increase 74 per cent from 2005 to 2035, while China is expected to grow its use of freight transportation fuels by more than 320 per cent between 2008 and 2035.

However, the report found that environmental pressures, legislation and high oil prices are prompting many firms to take action to increase the efficiency of their logistics.

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