Logistics and its Environmental Impact Part 2

Environmentalism is always now a hot political topic and it made its presence in effecting the 2020 UK Budget given by the Chancellor of Exchequer on the 11th of March. This particular budget had several significant changes which is going to impact logistics and its operations. One of the significant ones is the scrapping of red diesel subsidies for all industry sectors apart from farmers and rail operators. This will mean that equipment such as gencon sets used for moving reefer containers from the port to their delivery place will now have to use standard diesel. It will also mean temperature controlled trailer operators will also have to now use standard diesel. This is going to have a significant effect on pricing logistics companies will have to charge. This may well lead to the replacement of these generators with battery packs. However before this happens there is the issue of getting suitable charging points installed lorry parks so they can be plugged in while drivers take their required breaks. Lorry drivers are not going to be able just to pull up to an ordinary car charging point and use that.

A possible negative for the environment from the budget was the freezing of  fuel duty for the 10th year running. While some environmentalist’s felt this should have increased to help encourage the take up of alternative fuels, as diesel usage is a major contributor to logistics impact on the environment it operates in. However the situation with the economy at this time makes it probably not an option to do anything with. Additionally the change in attitude towards the use of electric vehicles and the environment in general means that this has overall less impact that what it may have had if this had been twenty years ago. Big commercial fleet operators are already starting to run out fleets of electric delivery vehicles in towns and cities around the UK. It is very unlikely that the freeze on duty is going to reduce these plans. Particularly as companies are very concern on how their green credentials are perceived.

The government has announced it is planning to support the use of electric vehicles by pledging a £500 million investment scheme in rolling out a network of charging points for plug-in vehicles. These charging points will be suitable for use by electric light goods vehicles such as transit vans. This will encourage businesses to adopt their use knowing that they are not going to have to spend time trying to track down a charging point. A Rapid Charging Fund is also going to be established to help small businesses install charging points at workplaces.

The government is going to have further investment in improving air quality. This will probably result in additional investment in road junctions which are particularly prone to  congestion. The investment will result in better flowing traffic, and less idling engines sitting in traffic queues. A win for the environment in less emissions being produced and transport operators benefit in saving fuel and quicker movements.