Danish tanker company TORM has successfully reduced the number of airfreight deliveries to its vessels from 14% to 3%, over the past years.
TORM achieved this by developing a new digital tool which helps the company to predict in which geographical region each vessel will trade in the future – way ahead of available schedules.
This digital tool is fed with input from TORM’s Operations and Chartering Teams, enabling the company’s Purchasing Department and Vessel Management to plan and frontload deliveries.
The result of the new tool is more deliveries by sea and less by air. This change has had a positive effect on both TORM’s operating expenses and on the CO2 impact within the company’s supply chain, and thereby reducing its scope 3 emissions.
TORM notes that the future involves an even more efficient setup where the company works with local entities to source locally, wherever possible, eliminating the majority of transportation from abroad.