LOGISTICS firm UPS is keeping its commitment to invest in alternative fuel and modern vehicles, as well as the engagement of its people in the coming years.
In its 13th annual Sustainability Report, the company reported its enhanced refleeting program with a 61-percent increase in the number of delivery trucks to over 5,000, including an addition of over 1,100 natural-gas vehicles.
Last year UPS logged 154 million miles. By 2017 it aims to reach 1 billion miles with advanced technology fleet.
The company is now more than halfway of the goal, according to UPS Chief Sustainability Officer and Vice President of Environmental Affairs Rhonda Clark.
“With continued investments in this fleet, we are doing our part to help transform the transportation industry,” she said.
Alternative fuels, such as natural gas, propane, ethanol, biomethane, renewable diesel and electricity were also tapped as replacements to 5.4 percent, or 25 million gallons, of the overall gasoline and diesel purchased by UPS in 2014.
Such initiative forms part of its thrust to lessen its annual use of gas and diesel by about 12 percent in the next two years.
The study also revealed that growth in consumer e-commerce and rapid urbanization are emerging trends now being faced by global transportation and logistics industry.
E-commerce shipments are usually business-to-consumer and carriers often deliver fewer packages per stop compared to business-to-business deliveries.
Given this, carriers may be driving a longer distance and fueling more just to deliver fewer goods.
Although e-commerce drove a 6.8-percent hike in package volume globally last year, UPS released fewer greenhouse-gas emissions per package, with aggregate carbon emissions growing merely 3.3 percent.
Its 14.1-percent reduction in carbon footprint since 2007 is like freeing the road from over 380,000 passenger vehicles for a year. Seeing that consumer deliveries will be equal to 50 percent of the 2019 business volume of UPS in the US, the company addresses this with Orion routing system, UPS My Choice service and UPS Access Point locations to enable consumers control the time and sites to get the deliveries and aid UPS in avoiding unnecessary miles.
Mindful of urban migration, the logistics firm is working closely with its clients, government officials and other stakeholders to develop new ways of delivery to reach highly populated cities.
In London, for instance, the company has 28 electric trucks operating. It plans to add 40 more units in the next few years to achieve an all-electric fleet there.
Also, UPS uses 80 electric vehicles in European cities, such as Amsterdam, Rotterdam and Hamburg. In some urban centers, on the other hand, it operates bikes for deliveries.
“Urbanization and e-commerce growth create unique challenges for us, our customers and the communities we serve,” Clark said. “UPS is committed to meeting those challenges, minimizing our impact on the environment and paving the way for a more sustainable future.”
Consistent with its corporate citizenship, the global firm is devoting 20 million volunteer hours by the end of 2020, translating into nearly $500 million in economic impact to nonprofit organizations worldwide.
UPS is on track to achieving this given that its employees and retirees, friends and families already have logged 7.2 million volunteer hours since 2011.
In relation to its services, the company’s employees and its global logistics network coordinated more than 263 humanitarian relief shipments of food, health and emergency goods in 43 countries, including areas affected by the Ebola epidemic, the Syrian refugee crisis and severe weather in the Philippines and the US.
Locally, the logistics provider works with Haribon Foundation, Earth Day Network Philippines and Clean Air Asia, among other organizations, according to UPS Philippines Managing Director Tim Gohoc.