• Peter Beckman, CEO at Treyd

Why lack of working capital puts the climate at risk

Shipping a tonne of goods from Dongguan in China to Gothenburg in Sweden with air cargo leads to over 6.8 tonnes of equivalents emissions. With sea freight, this would be 125 kg, including the truck transport to the port. Not only would sea freight mean 98% less emission, it would also substantially decrease freight costs. So why isn’t everything shipped using sea freight? The answer is often lack of working capital.

The big disadvantage of sea freight is that it is slower. The journey from China to Sweden takes 7 weeks by boat but less than a week by air. For large import businesses this may not be a problem, but for smaller companies having working capital locked up for so long is not a feasible option. Instead these companies have to invest in expensive air freight costs and 55 times more CO2 emission.

Treyd solves this problem by making it possible for importers to pay later. The savings that the importer makes on freight costs are almost always bigger than the costs for using Treyd’s financing service, so it is a win-win, not least for the environment.

Nowadays there is also the option to use train transport for goods from China. With train freight, CO2 emissions are reduced with almost 94% compared to air freight. The same transport with sea freight would reduce CO2 emissions with 70% compared to train transport.

Interested to check CO2 emission on your next freight? Here is a CO2 emission calculator for freight options.


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