Supply Chain Performance
Supply Chain Performance

How does the energy crisis affect the logistics sector?

The logistics sector has not had its best years recently, despite the fact that during the COVID19 pandemic it was called a sector of prime necessity and its importance in…

On October 14, 2022

The logistics sector has not had its best years recently, despite the fact that during the COVID19 pandemic it was called a sector of prime necessity and its importance in supplying the population was demonstrated. First there was the crisis in the international supply chain due to the pandemic that affected global container transport.

The energy crisis in Europe and Asia followed. And, as a result, we suffered a dramatic rise in electricity and fuel prices. This was coupled with numerous strikes by drivers and carriers demanding an improvement in their conditions.

In recent years we have been feeling the ravages of climate change, which is advancing at a much faster pace than it should. We are suffering a considerable increase in temperatures, very hot summers, intense storms, more constant and notorious droughts, etc.

Alternatives to the energy crisis

The energy crisis and climate change make it necessary to look for alternatives. Both operational alternatives, to reduce costs in the short and long term, and to combat climate change. We must act for the good of all, taking care of the planet and reducing our carbon footprint. The price of electricity in the first half of 2022 rose 265% compared to the same time last year. The same happens with gas where gasoline and diesel have reached figures above 2 € / L. According to Cores data, gas from Russia already represents 14.7% of our total reserves, which corresponds to 35% more than last year. With this increase, Russia is the fourth largest importer, behind only the United States, Algeria and Angola. We must act and be energy independent as a country and we must continue to invest in infrastructure to make this possible. We have the right conditions to go for alternative fuels. Governments, public institutions and private companies from any sector must be committed to change.

REPower plan to combat the energy crisis in logistics

The European Commission has recently launched the REPower Plan. This plan aims to make available 10 million tons of hydrogen from renewable sources produced within the European continent. The aim of this plan is to decarbonize the logistics and transport sector by 2030. As for data from Europe, it has been known in recent days that Spain is the country that has proposed more green hydrogen projects.

FM Logistic’s business strategy is framed within the horizon we call Powering 2030. Through this strategy we seek to decarbonize our activity and be leaders in terms of innovation and sustainability. We are strongly committed to hydrogen. FM Logistic has implemented and registered the first hydrogen plant in a logistics warehouse in Spain and the second one taking into account all global activity sectors. We are also immersed in more projects related to hydrogen: together with Técnicas Reunidas we are creating the first hydrogen-powered tractor unit and we are going to build an ecological warehouse in the south of Madrid which will have, of course, a hydrogen plant for our vehicles and which will also be open to the public.

Promotion of renewable sources

Similarly, it is very necessary to bet on energy from renewable sources for warehousing and other logistics services and thus combat the energy crisis. It is interesting to bet for example on energy from photovoltaic panels on the roof of logistics warehouses, since it is a space that in general is not exploited or used for other uses. Similarly, if we use hydrogen both for transport and for internal use within the warehouse, it is essential to know where it comes from, by what process it is produced and how it has reached us. For example, at FM Logistic we say that we produce green hydrogen because the energy we use in the hydrogen generator to obtain this hydrogen is obtained through the solar panels that we have operating on the surface of the warehouse. Other companies in the logistics sector such as Amazon are following in our footsteps and have short-term plans to decarbonize their logistics. Amazon plans to power its activities with 100% renewable energy by 2025.

On the other hand, the logistics sector needs alternative energy sources for heating, cooling and lighting systems in warehouses. With this measure we are able to optimize storage areas and reduce the consumption of non-renewable fuels and, likewise, costs.

Perhaps betting on innovation and sustainability for which types of alternative sustainable fuels may not give good short-term benefit figures. What we will be able to see are long-term benefits and quick results in terms of carbon footprint reduction.

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