A study by McKinsey & Company identify six steps to reduce transportation energy consumption by as much as 8 million barrels a day.
1. Increase the value density of shipped products: Optimizing the value density of products by redesigning products and packaging could reduce energy usage by 2 to 3 percent. For some products transport volumes can be reduced by as much as 30 percent.
2. Reduce the distance that a product travels: Locating suppliers and production sites close to consumption locations could reduce fuel consumptions. The paper suggests that when oil reaches $100 a barrel, the higher costs of transportation outweigh the additional cost of near shore production for many lower-value goods.
4. Change the mix of transport modes: By shipping more goods by railroads or oceans (instead of air or truck), energy consumption can be reduced by as much as 5 percent by 2020.
5. Improve the energy efficiency of transportation: Through better design and advanced technology carriers can increase the size of the transportation equipment, reduce drag (surface friction), increase payload, and use more fuel-efficient propulsion systems.
6. Improve the collective use of transport assets and infrastructure: "Smart" traffic management systems and use of route-planning software can help in reducing traffic congestion.
The study suggests that at 2008 shipping volumes, if the price of oil is $100 per barrel, the above listed steps could reduce transportation energy consumption by 30 percent by 2020. At $250 per barrel, the savings could reach 51 percent.
Source: Bette, H., Meyer, T., and Stuchtey, M. 2009. An Energy Efficiency Revolution in Supply Chains. McKinsey Quarterly, McKinsey & Company, August 2009.