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New IMO Regulations: Introducing Carbon Intensity Measures into Ocean Freight

By
JAS Sustainability Team
September 12, 2023
In a bold move to address the need for reducing carbon emissions in the shipping industry, the International Maritime Organization introduced groundbreaking regulations concerning energy efficiency and carbon intensity for all ships.
In a bold move to address the need for reducing carbon emissions in the shipping industry, the International Maritime Organization introduced groundbreaking regulations concerning energy efficiency and carbon intensity for all ships.

In a bold move to address the need for reducing carbon emissions in the shipping industry, the International Maritime Organization (IMO) introduced groundbreaking regulations concerning energy efficiency and carbon intensity for all ships. These measures require ships to calculate their attained Energy Efficiency Existing Ship Index (EEXI) to determine energy efficiency and to initiate data collection to report their annual operational carbon intensity indicator (CII) and CII rating. 

Understanding the Energy Efficiency Existing Ship Index (EEXI):

The EEXI is a score given to ships based on their energy efficiency. Ships attained EEXI will be compared to a required EEXI based on an applicable reduction factor expressed as a percentage relative to the Energy Efficiency Design Index (EEDI) baseline. Each ship's calculated attained EEXI value must be below the required EEXI to meet the minimum energy efficiency standard. 

Exploring the Carbon Intensity Indicator (CII) Rating:

The CII is set to rank and monitor the carbon efficiency of each vessel concerning the cargo carried, and the distance traveled. The actual annual operational CII achieved must be documented and verified against the required annual operational CII, allowing the operational carbon intensity rating to be determined. The rating ranges from A to E (where A is the best), and the threshold requirements will become stricter year over year.

Impact:

  • Environmental Benefits: The primary goal of these IMO regulations is to reduce greenhouse gas emissions (GHG). By measuring and monitoring energy efficiency, shipping companies can identify areas for improvement and optimize their operations to minimize carbon footprints.
  • Technological Advancements: These regulations will encourage the development and adopting of cleaner technologies within the maritime sector, fostering innovation and creating a demand for sustainable solutions.

Challenges:

  • Compliance Costs: Implementing the EEXI and CII measures will require investments in ship upgrades, retrofitting, and enhanced operational practices. For shipowners and operators, this could pose a significant financial challenge, particularly for older vessels.
  • Disruptions to Shipping Schedules and Supply Chains: As the cost of technological advancements is high, ships implement fuel-saving measures like slow-steaming, which can lead to longer transit times, affecting the predictability and reliability of cargo delivery.
  • Data Collection and Reporting: The accurate measurement and reporting of a vessel's carbon intensity require reliable data collection systems. Shipowners must adapt to new reporting standards and overcome potential technical barriers in gathering and transmitting data.

Conclusion:

Implementing the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) measures marks a significant step towards reducing carbon emissions in the shipping industry. While they offer environmental benefits, they also present challenges, including compliance costs and potential disruptions to shipping schedules. Collaboration among stakeholders, technological advancements, and regulatory support are crucial to navigating these challenges.

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Customer Advisory: Adverse Weather Impacts Southern Brazil

As widely reported by various media outlets, the southern region of Brazil is currently facing a significant weather-related crisis in Rio Grande do Sul, leading to dire circumstances in the state's most severely affected cities.

The impact of this weather event extends beyond individual homes, affecting critical infrastructure and logistics. Major disruptions have been observed in transportation networks, with 85 sections of 38 highways either wholly or partially blocked.

Current updates are as follows:

  • Band-Deicmar is scheduled to resume operations on May 14, 2024, for DTA shipments bound for Canoas/RS post-import.
  • Operations in Novo Hamburgo remain suspended until further notice.
  • The closure of Porto Alegre airport is due to flooding in the capital of Rio Grande Sul, with operations indefinitely halted.
  • Import cargo is being accepted in Rio Grande, and ongoing efforts are in place for export shipments of cargo that were delivered before road blockages occurred. However, new processes face challenges due to restricted access and road closures.

We are commited to closely monitoring developments and sharing relevant information with everyone affected.

JAS Brazil announces the appointment of Karin Schöner as its new Managing Director/President.

JAS Brazil proudly announces the appointment of Karin Schöner as its new Managing Director/President, effective May 2, 2024.

Karin Schöner is a native Brazilian executive recognized for her extensive expertise and leadership in the logistics industry. With a distinguished career , Karin has held key roles in sales, general management, and strategic leadership across various countries and sectors, including airlines, freight forwarding, contract logistics, and maritime operations. Prior to joining JAS Brazil, Karin served as the President for a company in the East Coast of South America, where she successfully led transformation initiatives.

Karin's track record is a testament to her exceptional capabilities in navigating complex challenges, fostering strategic partnerships, and driving innovation in supply chain management. Her deep understanding of market dynamics, regulatory frameworks, and industry best practices positions her as a leader in the logistics landscape.

Throughout her career, Karin has demonstrated a commitment to developing and empowering her teams. Her leadership philosophy emphasizes mentorship, collaboration, and continuous learning, resulting in high-performing teams that consistently exceed expectations and deliver outstanding results. Karin's passion for nurturing talent and fostering a culture of excellence aligns seamlessly with JAS's core values and vision for sustainable growth.

"Karin's unparalleled expertise, strategic acumen, and commitment to excellence make her the ideal leader to propel JAS Brazil forward. We look forward to her transformative leadership and contributions to our continued growth and success in the region," Adrian Emmenegger, Executive Vice President of JAS Americas, expressed with confidence.

Karin Schöner's appointment as Managing Director/President reinforces JAS's commitment to delivering superior logistics solutions, driving innovation, and exceeding customer expectations across Brazil and beyond.

JAS team members around the world celebrated Earth Month.

JAS team members worldwide celebrated Earth Month through various activities aimed at promoting sustainability and conservation. From beach cleanups to tree planting, each activity reflected JAS's dedication to making a positive difference in local communities and beyond. 

In Germany, China, and Panama, JAS team members joined forces to plant over 1,300 trees. In Germany's Lower Saxony, to promote ecological resilience, employees chose a diverse range of tree species that they knew would thrive in the local climate and soil conditions. Similarly, in Xiamen, China, the JAS branch organized a poignant tree planting event aimed at enriching urban greenery and enhancing the cityscape, reflecting the team's commitment to sustainable development. Meanwhile, in Panama, JAS Panama collaborated with local organizations to plant native trees within the Camino de Cruces National Park, a vital initiative aimed at restoring habitats and preserving the region's rich biodiversity. 

Simultaneously, in Taiwan, the Netherlands, Lithuania, and Sweden, JAS team members united their efforts as they cleaned up costal shorelines and forests, embodying their shared commitment to environmental preservation. With gloves on and bags in hand, they combed the beaches, collecting everything from plastic bottles to cigarette butts, restoring the natural beauty of the their local communities. 

In Brazil, JAS team members partnered with the NGO Iracambi, and headed into the Atlantic rainforest to engage in various volunteer activities aimed at preserving this vital ecosystem. Through hands-on experiences like tree planting for reforestation and participating in educational workshops on sustainable practices, the Brazil team demonstrated their commitment to protecting biodiversity and promoting environmental awareness. 

Andrea Goeman, Senior Vice President of QHSE & Sustainability, commented, "From tree planting to coastal cleanups, our collective actions reflect our dedication to making a real and tangible difference in the communities we serve. Through collaboration and shared responsibility, our teams contribute to a more sustainable and resilient future for generations to come." 

As Earth Month ends, JAS Worldwide stands proud of the collective efforts made by our global team to champion environmental stewardship. From tree planting endeavors in Germany, China, and Panama to coastal cleanups in Taiwan, Netherlands, and Sweden, and conservation efforts in Brazil's Atlantic rainforest, each initiative underscores our commitment to safeguarding the planet for future generations. These efforts exemplify the spirit of collaboration and shared responsibility that defines JAS, inspiring us to continue our journey towards a more sustainable world. Together, we are paving the way for a greener, cleaner tomorrow. 

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