Logistics Quarterly Magazine - Volume 16, Issue 1, 2010

Innovative Empty Miles Service
Enables Efficient Truck Transport

Sustainable transport options have increasingly become a priority for North American businesses. Fluctuating fuel and operational costs, coupled with road congestion and other environmental challenges have sliced into the budgets of freight and shipping companies, often compromising their efficiency and productivity.

By Art Smith

ONE AREA where a growing number of Canadian and U.S. companies face roadblocks is empty miles - the systemic economic and environmental challenge of trucks and trailers running empty once their cargo is unloaded and they are on the return leg of their journeys.

In direct response to industry's need to improve productivity, curb costs and reduce their carbon footprint, the Voluntary Interindustry Commerce Solutions (VICS), GS1 U.S. and GS1 Canada, brought together industry representatives from different sectors across North America to identify a solution, initiating the Empty Miles service.

Launched in Canada in February 2010, Empty Miles is an industry-led, online backhaul solution built to increase the sustainability of a company's supply chain - both operationally and environmentally. The service optimizes the use of trucks and trailers by reducing their emissions and fuel use.

A low-cost, shared technology solution, Empty Miles provides shippers and carriers with opportunities to reduce empty backhauls. The web-based service matches carrier availability (empty miles) with transportation demand (loads) and is delivered through a members-only Internet portal.

Since its initial launch in the United States in 2009, Empty Miles has proven highly successful in reducing greenhouse gas emissions. With 40 participants, including Coca-Cola Supply LLC, Walmart Stores, Inc., JB Hunt Transport, Johnson & Johnson, Best Buy, and other leading organizations,the service's benefits are apparent.

For example, premier American retailers Macy's and Schneider National reduced emissions by over 200 tons during their initial use of the service, and also increased backhaul revenue by 25 percent on specific accounts. In particular, Macy's experienced an increase of 30 backhaul loads per week; that is a projected 1,500 loads per year. As well, for each initial lane opened, Macy's reduced annualized transportation costs, on average, by $25,000.

The Hudson's Bay Company (HBC) is among is among a handful of Canadian companies that took part in a Canadian pilot, which confirmed the potential value of the Empty Miles service for the Canadian market. The pilot included the participation of other leading Canadian organizations such as Rona, XTL Logistics, and Fortigo Freight Services.

The pressing need to address the environmental consequences of empty backhauls has never been greater. A February 2009 survey by the National Private Truck Council revealed 28 percent of all trailers on U.S. highways are currently running empty. Needless road congestion, fuel consumption, and significant costs that companies must pay for outbound freight returning empty trucks all dramatically impact the environment.

The United States Environmental Protection Agency notes that ground freight transportation "contributes 30% of all Particulate Matter emissions, and freight transport is expected to produce over 450 million metric tons of carbon dioxide by 2012 - a 25% increase over today's levels."

An additional benefit to companies evaluating engagement in Empty Miles is access to a return on investment (ROI) calculator. The calculator was created to help companies define the potential financial benefits of using Empty Miles and also helps them identify their anticipated reduction in CO2 emissions. This capability further supports organizations' efforts to report carbon footprint improvements to management, trading partners and the public, as well as demonstrate their commitment to sustainable business practices.

Empty Miles is offered by VICS, GS1 Canada and GS1 U.S. to all North American businesses. As not-for-profit organizations, VICS, GS1 Canada and GS1 U.S. operate the service on a model of cost recovery to ensure organizations of any size can participate.