Green transformation strategy of pallet logistics in China based on the life cycle analysis

Abstract

The Anthropocene is a new geologic epoch defined by the significant impact of human activity on the planet. Industrialisation and population growth have altered the natural environment. The logistics industry, which facilitates economic development and enhances human well-being, relies on logistic carriers as essential equipment. Pallets, the most representative tools of logistic carriers, transport more than 80 % of the world's trade. The conventional pallet market structure is largely determined by economic and convenience factors, but in light of the global environmental changes, the leading users of pallet products have raised their environmental standards, making environmental performance a key factor in the pallet industry. While China is the second largest pallet holder and accounts for 25 % of the global pallet holdings, it lacks an in-depth understanding on the pallet market structure, the environmental effects, and the barriers for developing pallet sharing system in China. This study conducts comprehensive field studies to reveal the pallet market structure in China, applies life cycle assessment to present a cradle to grave environmental evaluation of the five widely-used pallet material types that account for 99 % of market share, and compare various end-of-life treatment methods using scenario analysis. Results show that the current market structure does not align with the optimal environmental outcomes, but would be improved by establishing the circulation-sharing system. Therefore, there is an urgent need for the pallet industry to undergo a green transition. The focus for developing a sharing system should be on engaging the leading user enterprises in the supply chain, rather than merely relying on the pallet manufacturers who have limited bargaining power. Additionally, the environmental impacts can be reduced by 20 % to 300 % via choosing the appropriate end-of-life treatment method for each pallet material type.