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Freight Brokerage5 min read

Carbon Emissions in Freight: What Canadian Shippers Need to Know

Freight carbon calculations have moved from a sustainability reporting exercise to a real operational and procurement input. Here is how emissions are measured in trucking, what drives the numbers, and how to interpret the output from a freight carbon calculator.

What It Means

Carbon emissions from freight include the greenhouse gases produced by burning diesel fuel to move goods. In trucking, CO2 is the dominant emission. The standard measurement unit is kilograms of CO2-equivalent (CO2e), which accounts for CO2 along with methane and nitrous oxide weighted by their global warming potential. CO2 and CO2e are not interchangeable for an inventory; use factors that cover the gases and lifecycle boundary required by your methodology.

Freight emissions calculations can support sustainability reporting, customer data requests and procurement decisions. Reporting obligations depend on the organization and applicable framework; the GHG Protocol is an accounting framework, not itself a universal legal reporting mandate. Canada's federal fuel charge rates were set to zero effective April 1, 2025. Do not assume an annually increasing federal diesel carbon levy in current freight costs.

Why It Matters

  • Fuel efficiency still affects operating costs, but industrial carbon pricing is distinct from the federal fuel charge on diesel, whose rates have been zero since April 1, 2025
  • Under GHG Protocol, purchased third-party transport, including outbound services you pay for, belongs in Scope 3 category 4; downstream transport of sold goods not paid for by the reporting company belongs in category 9. Allocate the relevant carrier emissions rather than reporting the carrier's entire footprint
  • Major retailers, manufacturers, and government procurement increasingly request or require emissions data from supply chain partners
  • Mode selection can affect emissions significantly, but FTL is not always lower-emission than LTL; compare utilization, consolidation, routing and terminal activity
  • Route optimization and load consolidation are the most immediately actionable levers shippers have to reduce freight-related emissions

How It Works

The Basic Calculation

Freight carbon emissions can be estimated using an emission factor applied to distance and weight. The standard formula for trucking is: CO2e (kg) = Distance (km) x Weight (tonnes) x Emission Factor (kg CO2e per tonne-km). The emission factor varies by truck type, load factor, and fuel type. An illustrative benchmark is approximately 0.085 to 0.11 kg CO2e per tonne-km, depending on load factor; this is not a universal Canadian fleet average or the calculator default. Do not substitute it into a reporting inventory without checking its source and boundary.

Load Factor

Load factor is the percentage of a truck's capacity that is actually used by your freight. In a fixed vehicle-emissions illustration, a full truckload at 100% capacity spreads those emissions over more freight than a partially loaded truck. Actual fuel consumption can also change with payload. LTL carriers consolidate freight, so compare the full network rather than assuming every LTL movement has higher per-unit emissions. In this calculator, FTL loaded emissions are divided by utilization expressed as a fraction; LTL uses the shipment's weight-based share, and entered deadhead adds empty-running emissions.

Using the OTR Logistics Solutions Carbon Footprint Calculator

The OTR Hub Carbon Footprint Calculator provides planning estimates for shipment screening and mode or route comparison, not a verified GHG inventory or regulatory-reporting approval. Its default dry-van factor is 0.155 kg CO2e per tonne-km and its default rail-intermodal factor is 0.028. For 20 tonnes over 1,000 km, dry-van FTL at 100% utilization with zero deadhead gives 3,100 kg CO2e; the rail factor gives 560 kg CO2e for the same mass and distance before adding truck pickup/delivery or terminal activity. Administrators can change factors, so consult the current tool factor table. Before reporting, validate factor provenance and lifecycle boundaries, allocation, refrigeration and omitted transport or storage activities against the applicable framework; the tool does not establish that its default factors meet those requirements.

Common Challenges

  • Using inconsistent emission factors across different reporting periods, making year-over-year comparisons unreliable
  • Reporting only on inbound or outbound freight and missing the other half of Scope 3 transport emissions
  • Treating all LTL movements as higher-emission than FTL without accounting for load factor and consolidation efficiency
  • Not capturing return or repositioning moves that contribute to the total emissions of a freight program

Best Practices

  • Establish a consistent emission factor methodology and document it - year-over-year comparisons require like-for-like inputs
  • Ask carriers for their actual fuel consumption data where available, which produces more accurate calculations than industry-average emission factors
  • Evaluate mode and route options on a total emissions basis, not just a cost basis, when developing the business case for shipping network changes
  • Consider load consolidation as the simplest emissions reduction lever available without changing carriers
  • Archive emissions data by lane and carrier to support annual sustainability reporting

When to Use This Service

  • When screening freight activity and collecting inputs for Scope 3 reporting, subject to methodology and inventory review
  • When responding to customer or procurement requests for freight carbon data
  • When evaluating shipping routes or mode options where emissions are a factor in the decision
  • When benchmarking your freight program's carbon intensity against a prior period or industry standard

Methodology and Policy Sources

Reviewed October 1, 2026: GHG Protocol transportation guidance supports fuel-based and distance-based methods and explains allocation and factor boundaries. Finance Canada confirms the federal fuel charge ceased to apply April 1, 2025. These references do not certify this calculator or endorse its default factors or illustrative benchmark.

Calculate the estimated carbon footprint of a freight shipment using the OTR Hub tool. OTR Logistics Solutions brokers freight across Canada and into the US.

Frequently Asked Questions

What is the difference between CO2 and CO2e in freight emissions?

CO2 is carbon dioxide alone. CO2e (CO2-equivalent) includes CO2 plus other greenhouse gases such as methane and nitrous oxide, each weighted by their global warming potential over a 100-year period. For diesel combustion, the difference is often described as small - typically 2-5% as an approximate illustration, not a universal conversion. It depends on the gases and factor boundary; upstream fuel emissions and refrigerant leakage can change the result. The calculator consumes CO2e factors and does not add a separate 2-5% uplift.

Is LTL or FTL lower-emission for the same shipment?

It depends on load factors. A consolidated LTL network running high average load factors produces lower emissions per shipment than FTL for smaller loads. A partially loaded FTL truck on a long lane can produce lower per-unit emissions than a fragmented LTL routing through multiple terminals. Use actual shipment parameters in the carbon calculator rather than assuming one mode is always better.

How does Canada's carbon price affect my freight costs?

Federal fuel charge rates, including diesel, were set to zero effective April 1, 2025; the former annually increasing federal diesel levy should not be assumed in current freight rates. Industrial carbon pricing remains a separate system. Provincial rules, other fuel taxes, market prices and carrier contracts may still affect costs, so check the jurisdiction and shipment date. The calculator's illustrative voluntary offset cost is not a fuel tax, carbon levy or market quote.

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