On June 13, FOR-U Smart Freight and the Beijing Institute of Inspection and Certification of Pony Testing International Group released the 2021 Greenhouse Gas Emission Reduction Research Report (hereinafter referred to as the Report). Focusing on digital freight carbon reduction practices, the Report calculates FOR-U Smart Freight’s greenhouse gas emission reduction through the smart middle platform in 2021, as well as the emission reduction forecast for the 14th Five-Year Plan period.
Based on AI technology and algorithms, FOR-U Smart Freight accurately predicts shipping orders and capacity for optimal order distribution and transportation dispatching. Based on the FOR-U Brain smart middle platform, the platform has significantly improved the efficiency of vehicle operations and transaction efficiency and considerably reduced the empty-loaded rate and vacancy rate of transportation vehicles, effectively cutting down greenhouse gas emissions in the freight industry.
It is calculated that FOR-U Smart Freight reduced 908,000 tons of greenhouse gas emissions in 2021 and is expected to reduce 2,593,400 tons of emissions by 2025.During the 14th Five-Year Plan period, FOR-U Smart Freight is expected to reduce a total of 8,211,200 tons of greenhouse gas emissions. In the future, with the gradual penetration of new energy capacity and the enhancement of road freight through digitalization, it is hopeful that the platform’s emission reduction will continue to grow after the 14th Five-Year Plan period.
Intelligently Increases Road Transportation Efficiency and Reduced 908,000 Tons of Carbon Emissions in 2021
Under the national development strategy of “carbon peak and carbon neutrality”, the logistics industry, as one of the pillar industries of national economic development, is a major energy consumer and shoulders the imperative mission of reducing carbon emissions.
According to the United Nations International Energy Agency, carbon emissions by vehicles while driving account for about 20% of the total global emissions. In China’s freight market, road freight accounts for around 75% of the total national freight volume and is China’s main mode of logistics. For a long time, China’s freight market has been troubled by inefficient vehicle operations. The Transport Planning and Research Institute, Ministry of Transport, has pointed out that the average empty-loaded rate of operating freights is as high as 45%, and the actual cargo capacity is only about 60%. The prominent empty-loading and vacancy issues have led to excessive emissions of greenhouse gases such as carbon dioxide, methane, and nitrous oxide.
FOR-U Smart Freight empowers transportation and transaction through AI technology, transforming the traditional links with human participation to intelligent mode so as to improve vehicle operation efficiency and transaction efficiency. The Report mentions that relying on the big data of the whole chain accumulated in the carriage process of the platform, FOR-U Smart Freight has constructed the FOR-U Brain smart middle platform by reconstructing algorithms based on multiple factors such as historical transaction prices, models, routes, cargo categories, off seasons and peak seasons, market supply and demand, weather, and emergencies. The platform enables intelligent pricing, intelligent dispatching, and intelligent services to accurately match orders to capacity and allocate the nearest loads to freight drivers. Meanwhile, it provides return freight orders and significantly reduces vehicle empty-loaded, vacancy, and abnormal occurrence rates.
Note: Cargo Volume and Vacancy Rate of Different Types of Freights Recorded by the Platform in 2021
Source: FOR-U Smart Freight Greenhouse Gas Emission Reduction Research Report
The Report reveals that FOR-U Smart Freight registered 957,646,800 kilometers of mileage in 2021. The empty-loaded rate of diesel freights, the main transport model, was 6.6%, that of natural gas freights was 5.0%, and that of freights powered by electricity, gasoline, hybrid power, and hybrid gas was 5.8%, 6.4%, 5.0%, and 4.1%, respectively. The average empty-loaded rate for all types of freights was 6.6%.
In terms of cargo carried, in 2021, freights of all power types carried 18.381 million tons of cargo, of which diesel freights had a vacancy rate of 24.8%, natural gas freights had a vacancy rate of 19.7%, electric freights had a vacancy rate of 32.8%, and gasoline, hybrid gas, and hybrid power freights had a vacancy rate of 26.8%, 21.5%, and 14.4%, respectively. The average vacancy rate for all types of freights was 24.8%.
The above empty-loaded and vacancy rates are lower than the industry benchmark of 45% and 40%. The Report estimates that FOR-U Smart Freight reduced 908,000 tons of greenhouse gas emissions in 2021 and is expected to reduce 2,593,400 tons of emissions by 2025, which is 2.86 times the emission reduction in 2021.
For its outstanding performance in intelligently improving road transportation efficiency and low carbon development, FOR-U Smart Freight has been given the Corporate ESG Practice of the Year Award by Jie Mian News and awarded the Green Practice Pioneer Project by National Business Daily.
Expected to Reduce 8,211,200 Tons of Carbon Emissions During the 14th Five-Year Plan Period and Lay Out Low-carbon Capacity
In recent years, the low-carbon and energy-saving development mode has become an industrial consensus and has been implemented in various industries.
According to relevant statistics, in 2020, China’s carbon emission intensity dropped by 18.8% compared with 2015 and by 48.4% compared with 2005, exceeding the target of 40%-45% reduction by 2020 promised to the international community. The rapid growth of carbon dioxide emissions has basically been reversed, and a solid foundation has been laid for further promoting the efforts to achieve “carbon peak and carbon neutrality” in the 14th Five-Year Plan period.
At present, diesel is still the most widely used energy source for operating freights, while electrical, natural gas, hybrid, and other types of freights have not yet been popularized. The utilization of diesel, gasoline, and other high-carbon energy has produced a large number of greenhouse gases. If low-carbon energy-saving freights are orderly promoted in the future and gradually replace high-emission trucks represented by gas and diesel trucks, it will contribute to the deep decarbonization of the freight industry.
According to the related person in charge of FOR-U Smart Freight, revolving around the concept of technology-enabled cost reduction and efficiency improvement, FOR-U Smart Freight will continue to enhance technology research and development during the 14th Five-Year Plan period, strengthen the level of intelligent dispatch, intelligent pricing, and intelligent services to further improve the platform’s operation and transaction efficiency and energy efficiency, thus propelling the digital and intelligent transformation of road freight.
Meanwhile, based on the future sustainable green development strategy, FOR-U Smart Freight will lay out in the field of new energy freights, such as hydrogen power freights, and gradually increase the utilization and penetration rates of new energy capacity, including electricity, natural gas, and hydrogen power. During the 14th Five-Year Plan period, the company will continue to advance the commercialization of self-driving freights and build an intelligent, efficient, and green freight platform, further reducing greenhouse gas emissions and helping China achieve its carbon peak and carbon neutrality goals.
Note: FOR-U Smart Freight’ Carbon Emission Reduction Forecast for the 14th Five-Year Plan Period
Source: FOR-U Smart Freight Greenhouse Gas Emission Reduction Research Report
The Report mentions that during the 14th Five-Year Plan period, FOR-U Smart Freight is expected to reduce a total of 8,211,200 tons of greenhouse gas emissions. With the gradual increase of digital penetration in road freight and the popularity of new energy freights, FOR-U Smart Freight is expected to continue the high growth of carbon emission reduction after the 14th Five-Year Plan period.