Sustainability in Shipping: The Rising Focus for SMBs in 2024

In the past, sustainability earned very little attention from consumers and businesses alike. Businesses knew sustainable practices could help differentiate them from their competitors, and consumers liked having the opportunity to support eco-conscious brands. However, sustainability has rarely been a crucial concern for major brands – until now. 

We’re entering a new era where consumers are actively boycotting unsustainable brands and making purchasing decisions based on an organization’s green initiative. At the same time, government groups and regulators are implementing new guidelines to reduce global carbon emissions. 

To compete in this world, avoid regulatory fines, and improve customer relationships, SMBs will need to take a holistic approach to sustainability, starting with updates to their shipping strategies.

The Rising Importance of Sustainable Shipping 

Running a truly sustainable business isn’t easy. There are numerous factors for organizations to consider, from the materials they use for packaging, to their energy consumption rates. However, global shipping represents one of the most significant challenges for eco-conscious SMBs. 

Up to 80% of the world’s raw materials and goods are now transported by sea, and a maritime vehicle can burn as much as 150 tons of fuel each day. On a broad scale, shipping is a major source of carbon emissions – making up 2% of the global carbon emissions we produce each year. 

Although in the past SMBs may not have been too concerned about their carbon footprints, changing consumer priorities and new regulations will force this to change heading into 2025. The EU Green Deal, introduced in 2020, is pushing organizations of all sizes to implement new sustainability strategies, particularly when it comes to managing shipping and freight. 

The Green Deal, which aims to reduce emissions by 90% across all forms of transportation in 2050, already draws attention to a growing need to find ways to decarbonize the logistics landscape. Organizations that fail to take measures to reduce their carbon footprint could risk being exposed to significant fines and penalties in the years ahead. 

At the same time, for SMBs, embracing sustainable shipping could be the key to facilitating greater profits and growth. According to Bain and Company, a strong approach to sustainability significantly improves profits for businesses of all sizes. 

Strategies for More Sustainable Shipping 

Implementing a sustainable approach to shipping and logistics won’t be easy, particularly for smaller organizations, but it could be crucial to remaining competitive in today’s world. Here are just some of the strategies organizations can implement to become more sustainable.

Choose the Right Shipping Partners

The first step to enabling sustainable shipping for SMBs is to work with logistics partners that prioritize sustainability. Many shipping and freight companies are implementing new strategies to reduce their carbon footprints, as the market continues to evolve. DHL, for instance, has positioned itself as a frontrunner in green logistics and aims to reduce its greenhouse gas emissions to net zero by 2050.

When assessing shipping partners, don’t just focus on their speed or reliability. Look at your partner’s approach to using optimized routes. Effective route planning reduces the amount of fuel vehicles use and reduces greenhouse gas emissions. 

It’s also worth examining whether your chosen vendors offer access to zero-emissions fleets. Logistics companies that use electric or hybrid fleets for last-mile delivery can help significantly reduce your company’s carbon footprint.

Rethink Your Packaging Process

Packaging is a crucial part of the shipping process for SMBs. It’s essential to keeping products protected in transit, highlighting your brand, and delivering positive experiences to customers. However, many traditional packaging materials aren’t always environmentally friendly. 

Studies have indicated that the vast majority of plastic packaging waste ends up in landfills around the world. To position your business as a truly environmentally-friendly company, you’ll need to evaluate your current packaging practices. Ask yourself how you can eliminate the need for extra packaging around your products by adapting to each specific product. 

Consider your inventory and ask your distributor if they have rightsizing tools they can offer to help you select the best possible shipping cartons to reduce waste. On the load‑securing side, switching from ad‑hoc banding to durable manual strapping tools helps keep cartons stable in transit, reducing damage, returns, and the extra emissions that come with reshipping. Think about how products are positioned in bags and boxes. For instance, rolling and folding apparel can save space. 

Additionally, consider using more sustainable packaging options. Packaging made of pre-used or recycled materials, compostable mailer bags, and biodegradable packaging peanuts will all reduce your carbon footprint. 

Consolidate Orders and Shipments with FCL Shipping

Consolidating various orders going to the same address in the same package reduces waste and your carbon emissions. Minimizing the number of boxes you need to load into a container or truck also means less overall last-mile and transit emissions. Similarly, reducing the number of overseas shipments you need to make can substantially minimize your carbon footprint. 

Full container load (FCL) shipping enables SMBs to ship more products in bulk, making the most of each shipment they send overseas. Instead of needing to book multiple shipments over the course of several months, they can transport large volumes of goods at the same time. 

Moreover, SMBs can use FCL shipping to distribute products to warehouses closer to their end-users and customers, reducing delivery times and improving customer experiences in the long-term.

Focus on Minimizing Returns

For SMBs in the ecommerce landscape, returns are a common challenge. When customers buy products online, they can’t see and inspect those items before they purchase them. This leads to a relatively high rate of returns, particularly for certain products, such as home décor and apparel. 

While it might be impossible to prevent returns from happening all together, there are steps you can take to reduce your returns rate. Creating clear product descriptions for all of the items you sell, and using multiple pictures to showcase every part of that product is a good first step. 

Making sure you have strict quality control measures in place for your warehouse and packaging teams is another good strategy. Stronger quality control will reduce your chances of accidentally sending the wrong packages to customers, or sending them damaged goods. 

1. Track your Sustainability Efforts

Finally, gathering data about your carbon footprint and emissions is helpful in various ways. First, it ensures you’ll be able to adhere to new reporting regulations and standards as they’re imposed by government groups worldwide. Secondly, it can help you pinpoint opportunities where you might be able to reduce your emissions, or eliminate unsustainable practices. 

Monitoring your carbon emissions also means you can transparently share insights with your customers about the steps you’re taking to protect the environment. This can give you a significant edge when it comes to promoting your business and earning consumer loyalty. 

Use analytical tools and collaborate with your partners, suppliers, and logistics carriers to maintain constant visibility into your carbon footprint.

Embrace the Era of Sustainable Shipping

Growing demand for sustainable shipping practices will represent new challenges for SMBs to overcome. You’ll need to work harder to find ways of reducing your carbon footprint on a holistic basis by partnering with the right companies, leveraging data, and updating your processes.

The good news is that a sustainable approach will most likely pay off. Not only will you be able to stay one step ahead of new regulations and mandates, but your profits could increase, too. As consumers become increasingly eco-conscious, your approach to sustainable shipping could help boost your conversion rates, differentiate your brand from competitors, and increase your revenue.