Reduction of GHG Emissions in the Supply Chain
- 1 gallon of diesel burned = 11.91 Kg1 of CO2
- The US class 8 fleet drove 297,000,000,0002 miles in 2017.
- If we use a conservative estimate that only half the fleet could utilize the Cargo Carousel System to exclude tanker trucks, hybrids, etc. and only 10% of those miles3 represent tractor/trailers driving empty then: 297,000,000,000 x 50% x 10% = 14,850,000,000 miles of truck/trailers travelling empty.
- Even if we allow 10 miles per gallon4 efficiency for those tractors/trailers which is “extremely” efficient then: (14,850,000,000/10) x 11.91 = 17,686,350,000 Kg of CO2 per year.
- If 1Kg = 2.20462 Lbs., then 17,686,350,000 Kg = 19,495,840 tons of CO2 per year.
- If our system could decrease empty back hauls in those trailers by just 50%5 then: 19,495,840 x 50% = 9,747,920 “tons” of CO2 per year could be eliminated in the US alone. So, if the global class-8 fleet used our system, we could reduce CO2 emissions by 1,218,490,000 tons annually.
Dollar Equivalent of Carbon Credits
- Search the Internet for “what is a ton of CO2 worth” and it ranges from $20/ton to $200/ton but even at $20/ton, that’s still worth 20 x 9,747,920 = $194,958,405 in carbon credits that would be available every year with just 5% of the class-8 fleet using our system in the U.S. alone. If we use the EDF’s value of US $50/ton, the global carbon credits might be worth US $60,924,500,000.
Dollar Equivalent of Fuel Savings
- If we use the same conservative estimate that only 10%3 of those miles represent tractor/trailers driving empty, then: 297,000,000,000 x 50% x 10% = 14,850,000,000 miles of truck/trailers travelling empty
- Even if we allow 10 miles per gallon4 efficiency for those tractors/trailers which is “extremely” efficient and we use the average price for a gallon of diesel at $2.9326 then: (14,850,000,000/10) x $2.932 = $4,354,020,000 in fuel savings per year (use your own updated price per gallon)
- If our system could decrease empty back hauls in those trailers by just 50%5 then: $4,354,020,000 x 50% = $2,177,010,000 worth of fuel per year could be saved in the US alone.
These are not difficult numbers to calculate and their sources come from readily available numbers on the Internet and uses standard figures (i.e. 1 gallon of diesel burned = 11.91 Kg of CO2). This system is simply a new concept that has never been considered before and it doesn’t take into account the recycling, supply chain visibility or other attributes that this system offers.
1 Source: www.fleetnews.co.uk/ (under Fleet Tools/Carbon Footprint Calculator)
2 Source: The American Trucking (ATA) http://www.trucking.org/News_and_Information_Reports_Industry_Data.aspx
3 This figure is used to express conservatism in the numbers. The actual percentage of empty miles travelled is estimated to be higher than 30%
4 The actual efficiency of class 8 vehicles is between 4 and 7.5 miles per gallon
5 We believe that, over time, our system could decrease empty back hauls in those trailers by more than 95%
6 The average price for a gallon of diesel on Dec. 15, 2014 was $3.419 and on Nov. 15, 2015 it was $2.445 (3.419 + 2.445)/2 = $2.932