How can transport emissions be calculated?
Transport emissions can be calculated by using emission conversion factors from scientific studies that provide global averages on transport distance, freight volume, or even freight rates to convert consistently available information for every transport in a very simple way to rather rough estimates of the resulting greenhouse gas emissions.
The IPCC, Umweltbundesamt, EPA among others publish these indicators or basic calculators. Other important sources of these default emission values are the GHG quantification methodology from the ISO14083 (ISO 14083 ) and the GLEC 3.0 methodology (GLEC 3.0), which both summarize and merge state-of-the-art default emission factors.
It is a very fast and easy way to come to a result but lacks precision and the opportunity to learn from the data, where, and what to do to improve the status quo. Our internal research has found that the deviation of basic conversion factors to real-life transport (consumption data measurement) can be up to 4-8 times.
An advancement of conversion factors is to use more granular data models that differentiate the various transport legs and transport modes as well as a broad set of further parameters to increase a realistic result for the transport emission calculation.
Parameters with a high impact on the calculation include:
- empty runs (de-tours or repositioning)
- load factors (capacity of the vehicle/vessel used)
- exact routing
- fuel type
- heating/cooling of the freight
- vehicle/vessel type
Assumptions made on this level of detail increase the precision of results significantly. Model data can also be improved over time by feeding in primary data sets from selected transports.
Most transport buyers do not have direct access to the fuel consumption of vehicles and vessels used for dedicated freight transport. Therefore, actual emission measurement is rarely available today. Even if it is, the correct allocation of consumption to the goods transported over multiple transport legs can be a very challenging task. shipzero combines the approaches of advanced modeling with managing the data exchange and management for primary consumption data.
The model can learn from primary data as the most reliable source of information for transport emissions, including all influencing factors such as idle times, traffic, weather, driving style, empty runs, etc. On top of this, it enables data-based recommendations on how to reduce emissions from the respective transport activities.
Why should I calculate my transport emissions?
By continuing with business as usual, we are (in a scientific consensus) steering towards a point-of-no-return in terms of global warming. This would lead inevitably to a significant increase in environmental damage, natural hazards, mass extinction, loss of inhabited land, and consequentially mass migration. Transparency and willingness to find data-driven solutions are elementary steps to avoid this situation.
Climate costs have long been ignored. Our ways of production, mobility and land use have not factored in the increasing amount of greenhouse gases that were set free. The more radical we need to change our behavior in a short time frame to adapt to renewable energies, the higher the consequences from an economical perspective. Depreciation of assets that consist or are powered by fossil energy sources is one important dimension. Ratings of conformity to reach self-set goals of emission reduction and the overall Paris Agreement also influence company valuations and consequently their cost of capital in the future. The cost of carbon will also increase future emission-heavy transport and products. Initiatives such as the EU Emissions Trading System (EU ETS) will facilitate this price increase of high-carbon products from a policy perspective (EU ETS ).
Employees, partners, and customers pay increasing attention to the actions taken to fight climate change actively by reducing greenhouse gases wherever possible. Marketing of one’s sustainable performance will become significantly more important. Reliable, data-supported evidence of reduction achievements and realistic goal setting is the answer to differentiate transparently from greenwashing initiatives in the past.
Higher regulation standards for environmental aspects of supply chains will inevitably come into force. Legislation such as the EU Taxonomy along with mandatory reporting for the Corporate Sustainability Reporting Directive (CSRD) require higher transparency standards. Furthermore, asset lifecycles will change dramatically as reduction ambitions are likely to overtake the lifespan of fossil powered transport assets such as trucks, train cars, or sea and air vessels. Adapting early with a data-supported risk management approach on all transport activities is key to transform successfully towards sustainable supply chains.
Am I obliged to report my transport emissions?
From 2025 onwards, most companies in the EU will be obliged to transmit their greenhouse gas emission footprint in Scope 1, 2 and 3 of the Greenhouse Gas Protocol definition as part of the CSRD. In the maritime sector obligatory reporting of fuel consumption towards the International Maritime Organization (IMO) and EU-MRV (Monitoring, Reporting & Verification) are already in place to derive also the carbon impact of activities. Furthermore, the demand from customers increased significantly over the last 12 months and is expected to increase even more in the future.
How can I reduce my transport emissions?
There are many ways of reducing emissions from freight transportation. Most of them can be categorized into three major pillars:
1) Trade lane efficiency
Switching to less emission-intense transport modes, adapting to more efficient driving-style or routing (incl. weather, traffic impact).
2) Freight consolidation
Reducing empty runs (de-tours to the point of origin) and increasing the load factor (utilization of the loading capacity of a dedicated vehicle/vessel).
3) Renewable propulsion
shift to lower-emission propulsion technologies such as battery-electric, hydrogen, bio-LNG, other synthetic or biofuels.
The potential for each pillar can be assessed by looking in-depth at granular transport data and enriching further information (infrastructure, environmental data, trade lane statistics) to specify the climate and financial impact of certain actions.
Can emission savings from optimization measures be predicted?
Yes, a prediction of saved CO2 emissions from optimization measures such as modal or propulsion switch and consolidation is available. shipzero identifies the measures with the highest impact and provides suggestions for optimization including their savings potential. The more data is provided, the more patterns that show inefficiencies can be identified leading to more detailed optimization suggestions.
Does shipzero offer a certificate for the CO2e footprint calculated?
Shipzero does not provide an own certificate or label. However, as our accredited calculation is a reliable source, you can make the calculation publicly available when communicating your sustainability strategy, in your CSR report, or on your corporate website by referencing shipzero. Furthermore, our methodology allows using the numbers for compensation strategies with a wide-range of partners.
What is the difference between carbon (climate) neutral, net zero, and climate-positive?
Carbon neutrality means that carbon dioxide emissions released into the atmosphere by a company’s activities are balanced by the equivalent amount being compensated or removed.
Net zero emissions describes the state in which the sum of greenhouse gas emissions is fully balanced by the amount removed from the atmosphere. Unlike carbon neutrality, where remaining carbon emissions are often counterbalanced through offsetting, net-zero encourages companies to eliminate all greenhouse gas emissions in the first place. Therefore, when choosing net-zero as a target, the focus is increasingly on decarbonization measures rather than compensation.
Climate-positive means an organization is actively removing existing carbon from the atmosphere that has not been generated by the activities of the organization itself, meaning it goes beyond net-zero.
What is the difference between offsetting and decarbonization?
Offsetting or climate compensating is a process used to reduce or remove emissions of carbon dioxide at one place by financing climate protection projects, such as reforestation. Even though widely practiced as a decarbonization strategy, carbon offsets alone are not sufficient to meet long-term climate goals and are therefore not a panacea, but rather one measure in a comprehensive decarbonization strategy.
Decarbonization describes the reduction or avoidance of emissions into the atmosphere. This could be achieved by switching to usage of low carbon energy sources and reducing carbon intensity. To meet the global temperature targets set by the Paris agreement and progress towards net zero targets decarbonization is essential.
How much does it cost to calculate emissions with shipzero?
Our pricing depends on the number of shipments you want to calculate. We offer annual subscription models starting from 499,-€ per month. The higher the number of transports, the lower the ‘per-shipment costs’, which do not exceed a few cents for our standard product. One shipment is defined as a single transport chain element between two geolocations on a distinct vehicle or vessel (and with that mode of transport) and without change of weight. Modal shift or loading and unloading events create a new transport chain element. For more information and your individual quote, please contact us.
What are the benefits of shipzero, compared to an internal approach or other services for emission calculation?
The decarbonization of the transport chain begins with the analysis of the status quo. The effort required to calculate, and allocate the data at the shipment level is very complex and costly. The most commonly used tool for this is Excel, where uncertainties arise due to a lack of know-how and a high error rate.
First, our managed carbon analytics approach makes calculating and analyzing your multimodal transport-related CO2 emissions as simple as possible. We provide a fully integrated service that goes beyond the calculation by monitoring your emissions, managing the data involved, sharing the information with your partners, and operating on the data to analyze and optimize your emissions. Compared to your TMS or telematics system, shipzero provides multimodal analyses and CO2 emission allocation to single products or clients as well as optimization potentials via modal shift or switch to renewable propulsion.
Second, we believe in collaboration and also integrate service offerings from other 3rd parties to increase adoption and climate action within the industry.
Third, we do not strive for having the single best „model“ in the market, but to support the best decisions to actively avoid and reduce greenhouse gas emissions. Therefore, we build up a joint movement of organizations willing to share the most reliable form of primary data and act on the biggest challenge of the upcoming century.
Can I directly compensate my transport emissions?
Yes, our methodology enables you to take the results directly for compensation of carbon emissions. Through our collaboration with ClimatePartner or other partners of your choice, this can be done directly on the basis of our results. However, we strongly recommend to use compensation as last option to reduce a carbon footprint, and always aim to enable avoidance and reduction first. Secondly, we advise to look out for strict compliance with verified high quality standards for compensation.
What does it cost?
The cost for one ton of CO2e depends on the project you want to select for compensation. More information
Who is responsible for the compensation?
The compensation project is conducted by ClimatePartner or any other offsetting vendor you might already be working with. shipzero is not involved in any carbon compensation projects.
Do I get a certificate?
Yes, a certificate that proofs the amount of carbon dioxide that was compensated for will be automatically provided by the compensation partner. More information
What benefits do I have as a carrier?
1) Save time through convenient, reliable, and secure transport emission management.
shipzero takes care of the data collection, correct calculation, allocation of your transport activities and provides professional reporting on a monthly to annual basis to your customers.
2) Market your competitive advantage.
By being transparent and showing the willingness to decrease emissions, you will benefit in future tenders and contract negotiations as shippers will increasingly set minimum requirements to the partners they work with as part of their own climate strategy.
3) Benefit from data-driven insights.
Even if you have a sound reporting on fuel statistics for your fleet in place, with granular analysis on an individual transport leg level, shipzero can identify patterns and areas of comparably high energy usage that can save a lot of money and reduce transport emissions.
Who stands behind shipzero?
We are the shipzero GmbH from Hamburg, Germany. We develop digital services and solutions for the freight transportation industry. With outstanding records in sustainability accounting and data analysis and integration, we provide the optimal service for working effectively with emission data. We are not owned or controlled by anyone and highly value our independent market position as data intelligence provider.
For us, it is key to serve the industry with reliable insights in a long-term and trusted relationship. We are not and will never engage in any competitive business model with our clients such as brokering transports.
Which data do you need from shippers?
We need the following information from shippers at a minimum:
- Start of the transport (geolocation, city, postal code, or street address)
- Destination of the transport (geolocation, city, postal code, or street address)
- The payload of the freight (weight and unit, e.g., tons, or volume and unit)
- Transport mode (main mode of transport, e.g., maritime, road, rail, air)
- Date (date and potentially time of the scheduled transport start and arrival)
- Sufficient IDs to identify single shipments or tours.
The calculation and later analysis can be significantly improved by adding further available information such as:
- Packaging unit (e.g., TEU, FEU, pallet, IBC)
- Waypoints of the transport (additional geolocations e.g., Shanghai to Rotterdam via Dubai)
- Product shipped (as part of further lifecycle analysis, e.g., name or ID)
- Transport specifications (e.g., cooled, heated, or hazardous goods)
- Carrier / LSP (name/ID of the transporting company for primary data integration and further analysis)
- Load information (groupage cargo/LCL vs. full-container load (FCL)
Which data do you need from carriers?
Movement and consumption data of the transport fleet, ideally connected via data interfaces (API) of the service provider (e.g., Daimler Fleetboard, Scania, Spedion, Samsara, RIO, TomTom, Trimble). Additional vehicle master data or transport information from the transport management system can substantially improve the data quality and enable additional analysis for optimization. Almost all modern transport management systems also offer the possibility to connect via APIs to the shipzero platform, without complex IT integration.
How do you access the data?
To access the shipment data on a regular basis, multiple ways are possible.
- Direct interface (API/EDI) If data is stored in a central data warehouse, transport management system or ERP that supports an external data interface such as REST API, SOAP XML, SFTP or EDI we can directly access standardized data sets without further efforts.
- Remote database connection. If the data sits on your local server or database, an alternative way is to access the relevant information via secured remote database connection (VPN).
- For testing and / or special IT restriction, we also offer to upload the required data set in comma-separated file format (CSV).
Do I need to integrate all my carriers to use your service?
No, you do not necessarily need to integrate any carrier data, as a standardized reporting can already be built upon the shipment data. However, the more carrier data is available, the more precise we can analyze and define optimization potentials.
Usually, transport buyers of large companies work with hundreds or thousands of different carriers. Integrating all of them at once is a great challenge. To start with the highest leverage, shipzero identifies the high-impact partners based on the input data.
With more primary data on the platform, shipzero is able to also improve the calculated results by using advanced analytics and machine learning algorithms. Reliable, high-quality results are therefore possible even with a relatively small percentage of partners integrated.
Is there a way to test your service?
Yes, we can set up a test reporting for you to benchmark the results with your internal calculation efforts and get a clear understanding of the results provided by the shipzero platform. Please understand that the number of transports we can calculate for you as part of a test reporting is limited. Furthermore, we need the input data as stated here to perform a test calculation for you. If you need more information, please contact us.
What modes of transport are supported?
With shipzero you can get insights and manage all ocean, rail, road and air, and inland waterway shipments. Shipzero supports a wide range of different vessel and vehicle types that can be derived from order data or modeled from other transport characteristics. Furthermore, each mode of transport can reflect a diverse range of fossil and renewably powered propulsion types. More detailed information can be retrieved from our methodology.
Does shipzero provide actionable insights to decarbonize the transport chain?
Based on your logistics profile and the available data, shipzero provides you with tangible insights about your emissions. Our API enables the discovery of emission hotspots in the supply chain and provides you with actionable information to reduce emissions. Calculating with primary data enables more accurate, realistic greenhouse gas profiles on an individual trip-level to identify idling patterns or inefficient driving behavior. In addition to the general transparency of all calculated transports, a tradelane perspective provides a direct comparison of individual routes and transport modes. This makes optimization potentials directly visible and supports the simulation of relocating freight volumes to more efficient routes.
Which methodology do you adhere to?
Our detailed methodology, including all references and sources, can be downloaded here. Our methodology is aligned and accredited with the ISO 14083 and the GLEC framework of the Smart Freight Centre and will be updated accordingly (Accreditation). If you have any further questions, please contact us.
How reliable is your calculation?
The reliability of the calculation is influenced by the amount and quality of the available input data. By comparing the usage of default emission factors with a minimum level of detail to the actual vehicle/vessel used, empty run factors, load factors, fuel used, or tour routing, we found deviations to precisely measured fuel consumption of 400-800%.
Therefore, shipzero is designed to automatically integrate as much valuable information as possible to increase the precision of calculation. The most reliable source of information is of course the integration of primary data, which makes shipzero stand out from other tools in the market.
Do you include transshipment emissions in your calculation?
Transshipment emissions are not included by default in our calculation as they differ a lot depending on the category of products or goods shipped (storage space, weight, cooling, etc.). A standard model for transshipment models will be available soon as it becomes part of the new ISO 14083 standardization. Until then, on-demand requests for transshipment emissions can be integrated individually but require eventually additional information about the size or energy consumption of the involved logistics sites.
What standards for transport emission reporting exist?
For reporting transport emissions, multiple guidelines were developed over time to give guidance and conversion factors to shippers and carriers. the most widely used ones are:
- GHG Protocol (2011)
- EN 16258 (2012)
- GLEC Framework (latest from 2023)
- ISO 14083 (2023)
All standards are based on each other and have become more sophisticated over time. shipzero is aligned with the guidelines of the GLEC Framework and ISO 14083.
Are logistics hubs included in your calculation?
Yes, we enable the carbon accounting of logistic hubs – country-specific and based on energy records. While transportation is dominating the conversation when discussing the environmental impact of supply chains, the environmental impact of logistics hubs is vital for a change towards a sustainable freight sector. Real estate such as warehouses is estimated to account for 15% of the freight sector’s carbon emissions in Germany, a high proportion of total emissions emanate from heating and cooling. Latest emission quantification schemes, such as the ISO 14083 and the GLEC 3.0, also include logistical hubs in their methodology. It is our goal to enable transportation companies to understand the sources of emissions and improve the efficiency of transshipment and warehousing operations within distribution networks. In addition to the calculation of transshipment and warehouse emissions, shipzero supports calculations of tank cleaning procedures.
How do you manage routing and distance calculations?
For all modes of transport, we rely on mode-specific routing algorithms and engines that provide an exact tour profile, reflecting tracks, roads, waterways, or ocean routes. Increasingly available information for individual cargo asset tracking from primary data is then the alternative to modeled routes. We do not support simple air distance (as the crow flies) for our calculations, as this oversimplifies the approach and does not follow the concept of conservative assumptions.
Are emissions from logistics hubs already allocated to the cargo throughput and single shipments?
Not yet. The currently widely used GLEC Framework offers the possibility to calculate transshipment and warehouse emissions on a high-level approach based on cargo-throughput. But this extended scope of a shipment emission declaration is not commonly used in the industry, which is why we – for the reason of fair comparison – do not include it by default into our calculation. This changes with the new ISO 14083, which puts additional focus on a comprehensive allocation of all logistics emissions. An adaption will be implemented as soon as exact requirements come into force.
Is your calculation in accordance with GHG Scope 1-3 emission evaluation?
Our methodology is in conformance with the GLEC Framework, a guide for shippers, carriers, and logistics service providers which is built on the GHG protocol.
Is your calculation accredited by a recognized third-party / independent standard?
Yes, we are an official partner of the Smart Freight Center (Accreditation), an international non-profit organization focused on reducing greenhouse gas emissions in freight transportation. As an accredited partner of the Smart Freight Center for reporting and accounting, companies can be confident that the GLEC Framework methodology is correctly applied by us.
What emission factors are used for the calculation?
Emissions factors also referred to as conversion factors or emission intensity, are representative values that describe the quantities of a pollutant released into the atmosphere.
Our methodology is aligned with the WRI/WBCSD GHG Protocol and retrieves the emission factors from publicly available, nationally relevant, and regularly updated databanks from recognized sources (such as the ISO 14083 and GLEC 3.0). For the most accurate results, a tiered approach is applied.
Who has access to the data and where is the data stored?
To ensure immediate and cost-efficient data exchange, shipzero stores the data in the cloud. The data centers are located in the corresponding world region of the customer or can be customized on request. As a single client, each customer is completely self-sufficient from other customer activities.
Only authorized personnel of shipzero GmbH have access to data to provide the offered service. Any unauthorized disclosure of data to third parties is prohibited. If data is to be exchanged between parties as part of the service provision, this requires explicit consent.
Who has data sovereignty?
All company-related information that has been entered on the shipzero platform exclusively by the customer and is not generally known will be completely deleted as soon as the service agreement is terminated. Carriers who contribute movement and consumption data of their fleet have an opt-in towards their customers. This means that there is no contractual right to primary data.
Analysis based on movement or consumption data will only be shared with the consent of the data provider. The consent can be changed individually for each partner and applies from the time of the change.
Are there any disadvantages for me as carrier?
No. shipzero is designed to foster collaboration between shippers, LSPs, and carriers. Therefore, our goal is to make all time-consuming activities or technologically difficult tasks of this process easier and faster. Carriers always have data sovereignty meaning that they can opt-out of the data sharing at any time. Furthermore, all information shared is not clearly attributable to individuals (as part of the GDPR) or disclose commercial information (freight rates, etc.).
How can I get access to the results of your service?
Shipzero offers a web application, which you can find at https://app.shipzero.com. You can view the data online, and download the information as a spreadsheet file. If you want to connect your data warehouse or business intelligence solutions to perform your own analysis of the results, we can arrange access through an individual API key. To subscribe to our service please contact us and we'll guide you quickly through a few steps of the onboarding process.
Who is accountable for transport emissions?
The buyer principle applies, meaning that the buyer (the party who pays in the end) of a specific transport service accounts for the emissions. Carriers and freight forwarders play a key role in sharing the relevant information parts with the transport buyer to enable reliable reporting as well as collaborative measures to reduce emissions.
Do I need to pay for my transport emissions?
This depends on your geographical focus of business activities. The European Union has included the Aviation, Maritime (starting 2023), and Road freight (2026) sector under the European Trading Scheme – a market-based unified pricing mechanism on carbon-emitting fuels or energy in transportation. Germany and other countries have nationwide taxes on the underlying energy assets (fuel) to account for carbon emissions. Apart from that, voluntary compensation is always possible to limit global warming on an individual basis.
How are transport emissions regulated today?
Regulation of transport emissions depends on the geographic focus of your business operations. We collect important regulations, regulatory frameworks as well as voluntary programs that deal with transport emission management and lobbying in our climate impact section.
Can I use the results for my sustainability reporting?
Yes, you can use the results to improve your internal or public disclosure of greenhouse gas emissions. All results can be made available to third-party tools or consultants and are transparently documented for external environmental audits. Typical use cases are disclosure and audit, standardization projects, optimization planning or customer reporting. For specific questions on how to integrate your transport emissions into CDP or science-based targets reporting, please contact us