Operations and the Environment
As a global company, our products are transported thousands of miles from factories through distribution centers to retail stores. We contract with a vast logistics network, which includes trucks, railroads, barges, and container ships, and requires large quantities of energy and produces related GHG emissions. We work closely with our carriers and manufacturers to minimize this impact.
Hasbro continues to achieve emissions reductions through transportation initiatives including container load maximization, off-peak loading and unloading, use of the closest port, and a shift to rail in China, the United States, Europe, Canada, Mexico, and Russia. At the same time, regional shifts in demand for our products, the availability of certain shipping methods, and production schedules present considerable challenges to further shrinking our logistics footprint.
Hasbro continues to use Southern California’s PierPASS program, which relieves congestion, shortens waiting times at security checkpoints, and helps improve air quality at the ports of Los Angeles and Long Beach in California by encouraging off-peak activity. Reducing container movement during peak hours means fewer trucks on the road during heavy traffic periods, reducing fuel consumption and emissions. During the year, 50 percent of our containers at these ports were moved during off-peak hours.
A simple way to cut transport costs and emissions is to use fewer trips. With this in mind, in 2013 Hasbro launched a “milk runs” program – loading products from several factories in a single container – in China for shipments going to the United States, Canada, and Europe. This program eliminates the need to have multiple trucks going to our consolidator, and then a single truck leaving the consolidator for the port. Instead, one truck takes a container from one warehouse to another, and then takes the full container directly to the port. In 2014 and 2015 we expanded the “milk runs” program to include our Latin America and Asia Pacific markets..