Every year, cargo shipping and freight transportation companies move tonnes and tonnes of stuff across the globe.
All this moving around is responsible for about 8% of the greenhouse gases in the atmosphere. And that number goes up to 11% when you factor in all the warehouses and ports. 3/4 of the world’s cargo is carried by ships and road vehicles. Together they make up 65% of all freight’s emissions. Not surprisingly, the logistics industry is facing mounting pressure to adopt sustainable practices. Nowadays, embracing sustainability in business is gradually transitioning from being an ethical issue to a strategic advantage that brings with it operational efficiency and cost reduction.So, what exactly can logistics companies get from moving away from paper-based processes to digital systems; for example, through the adoption of electronic Bills of Lading (eBL)?
Well, they can eliminate waste, speed up operations, and position themselves as sustainability leaders.
Not convinced? Then, read on to find out how being sustainable can be profitable in logistics, and why being eco-friendly actually means being eco-efficient – all done by simply ditching paper-based documentation and switching to digital solutions.
The environmental cost of paper documentation
It’s a fact: traditional logistics operations produce and consume a lot of paper documentation.
Just one international shipment can create a mountain of documents – sometimes as many as 50 pages, including bills of lading, bills of exchange, certificates of origin, customs declarations, and various other forms. And when you consider how many shipments happen worldwide every year, it adds up to a pretty staggering amount of paper (and negative environmental impact).
Let’s take a look at some telltale numbers:
- Each tonne of paper requires 17 trees, 26,000 litres of water, 4,000 kWh of power and 240 litres of fuel to produce
- Paper production contributes to deforestation and generates significant CO2 emissions and about 12% of greenhouse gas emissions
- 15.8 million paper bills of lading circulate annually in shipping
- Each paper bill generates 27.9 kg of CO₂ from printing, courier flights, and road transport
- Document storage requires physical space, often in climate-controlled environments
- Paper disposal and recycling consume additional energy and resources
As you can see, the carbon damage of paper documents is super high. The “paper problem” is bigger than we realise.
Environmental benefits of digital documentation
Paper has reigned over the international trade and the logistics industry in particular for far too long. We’re talking centuries of undisputed domination.
Unsurprisingly, it became a habit to trust only printed and signed paper documents. That’s why eco-concerns, like deforestation, water pollution or increased carbon emissions, haven’t bothered traders so much until recently.
But today the “paper problem” is way too real to ignore.
By switching to digital documents (i.e. opting for eBLs and electronic document systems), companies can:
- Reduce paper consumption up to 80%
- Achieve CO2 emissions saving of 440,820 metric tonnes per year
- Become compliant with ISO 14001 and other environmental standards
Reputational benefits of ditching paper documentation
Eco-friendliness is a popular trend today.
The companies that invest and promote sustainable practices can improve their reputation and get more trust from consumers, especially among younger generations.
In the US alone, 80% of Millennials and 66% of Gen Z respondents said sustainability was a driving factor behind their purchasing decisions. And since Millennials, 75% of whom are ready to change their buying habits to favour environmentally-friendly products, are currently the largest consumer group – winning their approval is very important.
The shift toward eco-friendly operations is also taking place among international regulatory bodies. Governments increasingly mandate emissions reporting.
One of the ways to amp up your brand’s reputation and reduce the damage caused by excessive use of paper documentation in logistics is digital transformation. Its main goals are to reduce reliance on resource-intensive paper processes and support circular economy principles.
Turns out – what’s good for the planet is great for your business reputation. And your bottom line!
Operational improvements behind digital documentation
Going digital with documents has a lot of perks, and it’s not just good for the planet. There are other benefits too, including potential cost savings and enhanced operational efficiency.Did you know that adopting electronic Bills of Lading could save $6.5 billion in direct costs and enable up to $40 billion in new global trade volume?
And when it comes to operational improvements, logistics companies are likely to benefit from:- 60% faster document retrieval through cloud-based systems
- 25% faster invoice processing through automated workflows
- 98% error reduction in customs paperwork using automated validation
- Enhanced document security and tracking
- Improved compliance and audit trails
- Faster customs clearance and reduced delays
Going digital isn’t just a nice-to-have anymore – it’s becoming a must-have for staying competitive in logistics, because it helps reduce manual efforts, minimises errors, and accelerates processing times.
How digital docs slash carbon footprint
In 2023, a major global shipping company implemented eBLs across 120,000 shipments. The digital transition eliminated 3,348 metric tonnes of CO₂ equivalents annually, which equals to removing 730 passenger vehicles from roads.
After switching to eBLs, one company also enjoyed a number of significant operational benefits:
- 40% reduction in document-related customer complaints
- $2.1 million annual savings in courier fees
- 15% increase in shipment processing capacity
In general, a study by the Global Shipping Business Network (GSBN) found that switching to eBLs could save 27.9 kilogrammes of CO2 per shipment, not to mention significant time and expense cuts.
| Metric | Before Ebl | After Ebl | Improvement |
|---|---|---|---|
| Document processing time | 7 Days | 24 Hours | 71% Faster |
| Courier costs per shipment | $85 | $12 | 86% Savings |
| CO2 per bill of lading | 27,9 kg | 0,8kg | 97% Reductiom |
Source 1; Source 2; Source 3
The future of sustainable logistics
The logistics industry’s future belongs to companies that are actively embracing digital document solutions.
Being eco-efficient is becoming more than just a requirement.
As CO2 emissions from freight transport are projected to grow by 290% by 2050, electronic trade documents are the only way forward.
Environmental responsibility and business performance no longer compete – they unite through technological innovation to create a more viable model for growth.
Digital documentation systems can help companies grow and expand sustainably. Because the switch to digital documents not only significantly reduces paper usage and lessens contribution to deforestation and energy-intensive paper production, but also offers significant cost savings and operational enhancements.
To sum up, logistics companies that opt for digitalisation of their trade documents position themselves as industry leaders in sustainability, while also enjoying more efficient and profitable operations that are future-proof.
Put simply, going paperless is not just good for the planet – it’s good for business.Ready to go digital? Contact Enigio to see how trace:original can help you achieve a fully digital end-to-end workflow with electronic original documents.
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