Hidden cost of cross-border shopping

ONLINE shopping habits in countries around the globe, including Malaysia, have been altered by free shipping and ultra low-cost e-commerce. It may appear to be a cost-saving move for consumers, but there’s a less obvious price – carbon emissions resulting from long-distance transport.

Transportation is already one of the largest contributors to global warming. The transport sector accounts for approximately 24% of global energy-related carbon emissions, with freight and logistics being significant contributors.

With the growth of cross- border e-commerce, an increasing number of products are being transported thousands of kilometres from origin to destination via air, sea and land transport.

A major concern is the use of air freight to deliver low-value parcels quickly.

According to logistics and sustainability research, air freight is one of the most carbon-intensive modes of transport, emitting up to 50 times more carbon per tonne-kilometre than sea freight.

Further emissions are incurred in the last-mile delivery, whether by sea or land vehicle, particularly if parcels are being sent one by one and not in bulk.

Compared with buying from local retailers, cross-border online shopping often includes several steps of delivery – from factories to international warehouses to customs clearance to door-to-door distribution.

This system has a higher energy consumption per item due to its fragmentation. In contrast, local retail distribution usually has the advantage of bulk transport and a shorter supply chain, leading to lower emissions per product.

Furthermore, free shipping offers are used to stimulate high frequency, low-cost buying. So, rather than reducing the number of products purchased, consumers also tend to place more frequent smaller orders, which creates more packages and delivery trips.

This indirectly increases the carbon footprint for each product delivered.

While the Internet may help people get good deals, it does beg the question as to whether they are aware of the impacts of their shopping habits on the environment.

A more sustainable solution would be to implement more environmentally friendly logistics systems, improve shipment consolidation and raise awareness of the environmental costs of “free” shipping.

Otherwise, today’s convenience could result in increased carbon load for tomorrow.

PENNY CHONG PEI NEE

Penang