Strategies for minimizing empty container mileage

In global trade, efficiency and sustainability are more important than ever. One of the major challenges facing the industry is the problem of empty containers—shipping containers that are returned to their origins or other locations without any cargo. These empty trips result in wasted resources and increased environmental impact. Let’s look at some effective strategies to solve this problem and the important role of triangulation solutions in optimizing container logistics.

Empty containers are a common problem in international shipping. According to the World Shipping Council, about 20% of all container shipping in the world is empty. This inefficiency not only increases operating costs, but also contributes significantly to carbon emissions. For example, the consultancy Drewry estimates that around 60 million empty containers are moved around the world each year, resulting in significant unnecessary fuel consumption and environmental pollution.

Accurate demand forecasting and planning is fundamental to minimizing empty container runs. Using advanced data analytics and machine learning, shipping companies can more accurately forecast demand and ensure containers are placed where they are needed most. This proactive approach helps reduce the frequency of empty shipments.

Cooperation between shipping companies can also mitigate the problem of empty container runs. Digital platforms that allow companies to share container space and synchronize their logistics can lead to more efficient use of containers. For example, there are platforms that facilitate the exchange of containers between different shipping lines, reducing the need to rearrange empty containers.

One of the innovative approaches to solving the problem of empty container mileage is triangulation. This strategy involves containers picking up new cargo from a location close to their point of unloading, rather than returning empty to their point of origin. For example, if a container is shipping goods from China to the United States (US), instead of returning empty, it may be tasked with picking up another shipment within the US destined for another international destination. This method significantly reduces the number of empty miles and improves overall efficiency.

According to a report from Boston Consulting Group, implementing triangulation can reduce the movement of empty containers by up to 15%, resulting in significant cost savings and environmental benefits. Companies such as Maersk and Hapag-Lloyd are already investing in triangulation solutions to optimize their container logistics.

With rising geopolitical tensions and lessons learned from the pandemic, there is a growing trend towards regionalization of supply chains. By producing and delivering goods closer to the point of consumption, dependence on long-distance transport is reduced, thereby minimizing the occurrence of empty container runs. This approach not only improves the sustainability of the supply chain, but also contributes to achieving sustainability goals.

The advent of smart containers equipped with IoT (Internet of Things) devices has become another game-changer. These containers can provide real-time data about their location, status, and availability. This visibility allows containers to be tracked and moved more efficiently, ensuring that empty containers are quickly identified and redirected to areas of high demand.

Governments and international organizations also play a critical role in addressing the problem of empty containers. Policies that encourage sustainable practices, such as tax incentives or subsidies for companies that adopt green logistics strategies, can stimulate industry-wide change. In addition, stricter regulations on shipping’s carbon emissions could push companies to find more efficient ways of operating, including reducing the movement of empty containers.

Minimizing the mileage of empty containers is not just an operational necessity, but a critical step towards sustainable global trade. Using these strategies not only helps reduce operating costs, but also achieves significant environmental benefits, paving the way for a greener, more efficient future of global trade. As we continue to innovate and collaborate, the dream of a more sustainable shipping industry becomes more achievable. By tackling the problem of empty containers, we can steer the global trade sector towards a future where efficiency and sustainability go hand in hand.

This article is written by Harsh Vardhan Gupta, Co-Founder, MatchLog Solutions.