Road transport: a key link in the supply chain
Trucks remain essential to the movement of goods. They cover long distances, but more importantly, they handle the first and last miles between production sites, ports, warehouses, stores and consumers.
Road freight transport still relies heavily on petroleum-based fuels, particularly diesel. The high energy density of liquid fuels, rapid refueling and the existence of an extensive distribution network are among the main reasons for this situation.
For transport companies, fuel therefore represents a major operating expense. A significant rise in oil prices can increase operating costs and ultimately affect the prices charged to customers.
An essential part of maritime trade
Global trade also depends heavily on container ships, bulk carriers and other commercial vessels transporting goods between continents.
Maritime transport mainly uses petroleum-derived fuels, although the industry is gradually seeking to diversify its energy sources. Given the enormous quantities of goods transported by sea, oil continues to play a strategic role in international trade.
From clothing and electronic devices to raw materials and industrial equipment, many products travel thousands of miles before reaching their destination markets.
Aviation remains highly dependent on oil
The situation is similar in air freight. Aircraft mainly use petroleum-derived jet fuel. Air transport represents a relatively small share of the total volume of goods transported worldwide, but it plays an important role for certain products.
It is particularly useful when delivery must be extremely fast or when goods have a high value relative to their weight. Pharmaceuticals, electronic components, urgent industrial parts and perishable goods can therefore be transported by air.
For this sector, finding a large-scale alternative to oil is particularly challenging because of the considerable amount of energy required for aviation.
Oil is used for more than just fuel
The role of oil in logistics is not limited to powering vehicles. It is also a raw material used in the manufacture of many products required for transporting and storing goods.
Some of the plastics used in packaging are produced from petroleum- or gas-derived raw materials. Protective films, foams, certain containers, adhesives and various packaging components may therefore depend on the petrochemical industry.
Oil is also used to produce lubricants that are essential for the operation of many engines and industrial machines.
Logistics’ dependence on oil is therefore both energy-related and material.
Oil prices influence logistics costs
This dependence explains why changes in oil prices are closely monitored by companies in the logistics industry. When fuel prices rise sharply, transport operators can see their costs increase rapidly.
These additional expenses can then gradually spread throughout the supply chain, affecting carriers, wholesalers, manufacturers, retailers and eventually consumers.
The impact is particularly noticeable for goods traveling long distances or requiring several modes of transport. A product may, for example, be transported by truck to a port, cross an ocean by ship and then return to the road before reaching a warehouse or store.
Each stage can be directly or indirectly exposed to fluctuations in energy costs.
A resource at the heart of geopolitical issues
Global logistics is also sensitive to the geopolitics of oil. Since petroleum resources are unevenly distributed around the world, many countries depend on imports to meet their energy needs.
Conflicts, economic sanctions, decisions made by major oil-producing countries or disruptions to infrastructure can influence both supply and prices.
The main maritime routes used to transport oil are themselves strategically important. A disruption affecting a strait, port or major trade route can have consequences extending far beyond the energy market.
For companies, the security of energy supplies is therefore one of the risks that must be considered when managing supply chains.
A dependence that is gradually being challenged
Faced with climate concerns and the need to reduce greenhouse gas emissions, the logistics industry is seeking to reduce its consumption of petroleum products.
In road transport, electric vehicles are becoming increasingly common for urban and regional deliveries. Electrified railways also provide an alternative for certain types of freight and specific routes.
The transition is more difficult in maritime transport and aviation. Several solutions are being explored, including synthetic fuels, biofuels, hydrogen and other alternative fuels. However, their availability, cost, required infrastructure and actual environmental impact remain significant challenges.
Companies are also working to improve logistical efficiency. Optimizing routes, increasing vehicle load factors, reducing empty journeys and positioning inventories closer to consumers can reduce the amount of energy required to transport goods.
A role that remains difficult to replace
The energy transition is therefore gradually transforming the sector, but oil continues to be extremely important to global logistics. Its high energy density, ease of transportation and storage, and the infrastructure developed over several decades make it difficult to replace.
However, the situation is likely to evolve differently depending on the mode of transport. Delivery vehicles, for example, can be electrified more easily than long-haul aircraft or some large commercial ships.
The challenge for the coming decades will therefore be to maintain the efficiency of a logistics system that is essential to the global economy while progressively reducing its dependence on fossil fuels. Oil remains one of the pillars of this system today, but energy diversification could profoundly change the way goods are transported in the future.
