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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.

JAS Reference Sheet: IMO 2023 Regulation Reduction of GHG Emissions from Vessels JAS Reference Sheet: Inclusion of Maritime Emissions in EU Emissions Trading System (ETS)
JAS Indonesia leverages impressive network for safe transport of marble, stone, and ceramic tiles

JAS Continues to Build Reputation for Excellence in Marble, Stone, and Ceramic Tile Logistics

By
Achie Sulestari
October 4, 2021
JAS Indonesia transports 11 containers of unpolished travertine blocks
JAS Indonesia transports 11 containers of unpolished travertine blocks

It pays to have strong relationships with manufacturers and importers in the marble, stone, and ceramic tile industry. Since 2017, JAS Indonesia has built a reputation as a premier logistics provider for this vertical market.  

The years of experience and professionalism exhibited by the JAS Indonesia team is unparalleled. Customers requiring the transport of ceramic tiles, marbles, stones, and machinery for processing marble, sanitary ware, bathroom furniture, and accessories know they can receive quality service from the JAS team.  

Years of networking and relationship-building within the industry have led to solid connections with suppliers in Italy, Izmir, and Xiamen. As an additional benefit, JAS Indonesia managing director Franceschino Menconi has lived in Carrara, Italy giving him a personal connection to many suppliers. He goes the extra mile to arrange meetings between buyers and suppliers to discuss how JAS Indonesia’s expertise in the industry can benefit them in the future. With offices in Carrara, it is easier for JAS Indonesia to build buyer and supplier trust.  

Recently, the JAS Indonesia team moved 11 containers of unpolished travertine blocks and 4 containers of unpolished marble slabs for a customer. As part of its services, the JAS team:

  • Picks up blocks directly from quarries using heavy equipment with a capacity of up to 30 tons or via drop-deck trucks with a capacity of up to 60 tons.  
  • Handles blocks in the depots using specialized equipment that loads them into shipping containers.  
  • Sends shipping containers to appropriate ports for transport.  

Customers can rely on JAS Indonesia to provide end-to-end logistics services for their ceramic tiles, marbles, and stones that protect the products at all stages.

Asia Pacific

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Asia Pacific
Cleber Oliveira, JAS LATAM Director of Ocean Consolidation Services
Four Reasons to Consider LCL Ocean Freight

With ocean freight space at a premium, less-than-container-load (LCL) cargo makes sense now more than ever. We continue to experience never before seen levels of demand while facing a reduced availability of space onboard ships, severe congestion in ports, and a shortage of empty containers. This unprecedented environment demands the effectiveness of LCL to keep your supply chain moving. 

LCL shipping, with its numerous moving parts and complex processes, can seem overwhelming and not worthwhile. However, JAS has a global network of dedicated LCL specialists who can provide you with a complete understanding of the process and peace of mind throughout.

Choosing JAS means choosing: 

  • Sailing Integrity: With our less than container load (LCL) services, we offer weekly departures to over 40,000 CFS (Consolidated Freight Stations) pairings around the world, ensuring schedule integrity and some of the fastest transit times in the market to help you keep your supply chain moving. 
  •  Reliability & Allocation Management: At this time, market demand exceeds supply, and the ocean market is suffering from blank sailings, rolled cargo, and a lack of available containers and equipment. However, our global and regional teams are taking proactive actions such as pre-bookings and contract agreements with a guarantee of space, equipment, and loading.
  •  Security & Compliance: Security and confidentiality are ensured. Our experienced consolidation and deconsolidation teams, working from 100% security compliant facilities at both origin and destination. This ensures secure loading, bracing, and blocking, all occur under JAS supervision.
  • Visibility: Visibility is key to your just-in-time supply chain, and through JASTrack you can have visibility and control of your shipments from the time you place your order with the supplier to the final destination. 

JAS LCL experts across the globe bring all these pieces together to provide best-of-class service combined with local knowledge and personal service. Your LCL cargo will travel as safely and reliably as your full-container load (FCL) cargo while still providing economies of scale, and the cost benefits of FCL shipments. 

For more information about our LCL services, reach out to your local JAS office or visit our global LCL schedules.

JAS China Proud to be E-Commerce Solution Provider for Outdoor Sports Client

JAS China has always gone an extra mile in servicing customers with a personal level of care, and this time JAS is pleased to announce the development of a customized E-Commerce solution for a well known outdoor sports client, one of the most popular brands in Europe.

To cope with the brand’s on-going market expansion in China via e-Commerce platforms (e.g. T-Mall and JD), the JAS China logistics team displayed its professionalism by tailoring the customized warehousing and delivery solution for the client’s B2C demands. The e-Commerce solution includes the most complex process among all; system linkage – wherein JAS works closely with the client’s 3rd party system provider in linking up 21 data-interfaces between WMS system and client’s 2 ERP systems. This system network works on 24/7 end-to-end basis in order to enable orders generated and transmitted on real-time basis, where order status can be also monitored transparently. This enables our client to optimize its logistics planning and bring the best and smoothest online purchase experience to its customers.

The e-Commerce solution has been kick-started at JAS China’s Shanghai warehouse starting toward the end of June 2021. JAS is confident that projects like this will bring success to the brand in China’s ever-growing consumer market.

Nose Knows Best

Air cargo security is constantly evolving. The latest regulations from the International Civil Aviation Organization (ICAO) require that, by June 30 2021, all air cargo on international all-cargo flights be screened at the same level of scrutiny given to cargo flying on passenger planes.

Therefore, freight forwarders such as JAS must adapt to find ways to screen air cargo safely and efficiently. While X-Ray technology, Explosive Trace Detection (ETD), and physical screenings can be used to help ensure the safety and security of air cargo, these processes can be inefficient as the cargo must be screened at an individual piece level. This requires palletized cargo be taken apart, screened, and put back together, which can slow down a Certified Cargo Screening Facility (CCSF) and add unnecessary labor and time to the screening process. While technology still serves a purpose, one of the most effective and efficient ways to screen cargo has a fur coat, four paws, and a powerful nose.

For years canines have been used as a part of the passenger-cargo screening process due to their natural ability to identify individual odors and their source. With over 300 million sensory receptors in their nose, the canines can use their powerful sense of smell to serve as bio-sensors to detect the presence of explosives.  If a threat is detected, the dog alerts its dedicated handler to assess the cargo further.  

Due to this powerful sense of smell, the canine teams can add efficiency to the cargo screening process by screening cargo that is too big for machine screening. Furthermore, the canine teams can screen palletized cargo without the cargo having been taken apart to screen, therefore cutting the cargo screening process from hours to minutes. This minimizes the potential for backlogs and delays, all while maintaining freight integrity from start to finish.

Behind these amazing dogs is the company Global K9 Protection Group. They ensure each canine and handler team is well trained and able to pass the TSA certification each year which allows them to provide screening in a variety of environments. Sommer Sampson, JAS USA Corporate TSA PSC (Primary Security Coordinator), notes “We have been extremely pleased with Global K9‘s unparalleled customer service.  We are a happy client and look forward to our continued working relationship with their team as the ICAO mandate approaches!”

As we move towards meeting the requirement of screening 100% of international all air-cargo flights, we are thankful for our canine friends who help us ensure that air cargo is screened efficiently without sacrificing security.

Navigating Port Congestion After the Suez Canal

Even before the Suez Canal blockage the shipping industry was facing extreme congestion levels in many ports across the globe, including those in the USA, Canada, South Korea, China, Singapore, and the United Kingdom. With demand remaining high, port congestion challenges will continue for months to come with increased volumes, restrictions due to COVID-19 requirements, and missed berthing windows.

Even if the Suez Canal is now open, the operational impact of a week blockage will have a ripple effect lasting for weeks:

  • A further deterioration of schedule reliability and additional equipment unbalance is to be anticipated even on Trade-Lanes not directly related to the Suez Canal.
  • Some steamship lines have stopped accepting new bookings from Europe to USA until end of April.

Marine terminals at the U.S. ports of Los Angeles and Long Beach are experiencing some of the worst congestion, with anchorage times often exceeding a week. In March, the United States passed another stimulus bill, while at the same time, COVID-19 infection rates are decreasing, multiple states are relaxing COVID-19 restrictions, and the number of people vaccinated continues to grow. Consumer spending and retail imports are predicted to remain high, and even increase, throughout the spring and summer months, providing the ports with no relief when it comes to congestion.

While it can be challenging to avoid port congestion, there are some ways to minimize the impact of port congestion and plan for success.

  1. Explore alternative gateway ports that face less congestion. With the congestion on the U.S West Coast, many are exploring other port options such as the Port of Seattle. Alternatively, some are choosing to bypass the U.S. West Coast altogether in favor of going through the Panama Canal and up the East Coast.
  2. Plan ahead. At this time, planning ahead is key and booking shipments as soon as possible can help keep your supply chain moving. With the current equipment shortages and severe congestion at ports, some levels of delays are almost unavoidable. Therefore, it is important to build extra time into your schedule to account for the current conditions.
  3. Consider utilizing other shipping methods. As in non-pandemic times, ocean freight affords the opportunity for cost reductions when compared to airfreight. However, the lead time is much longer than airfreight. When facing time constraints, air freight may be a more viable option. Another option to consider is LCL Ocean freight, smaller but more frequent shipments can keep your supply chain moving. While LCL also faces congestion issues it is much easier to be flexible and by splitting product on more vessels, better chance that cargo gets moved using multiple vessel/ports to get product through. Talk to your JAS representative for options on alternative shipping methods that fits your needs.
  4. Stay in contact with your JAS representative. With the increased port congestion, it is more important than ever to stay in contact with your local representative so that you are aware of arrival times, equipment availability, and market conditions.

For more information on how to navigate the current port congestion, contact a JAS representative.

For more information about current ocean market conditions, read our most recent ocean market update: https://www.jas.com/market.

In Times of Crisis, Customers Turn to the Agile and Responsive Expertise of JAS

Reduced global air cargo capacity, blank sailings, carrier solvency, increasing port congestion, and last-mile delivery delays are adding to an ever-growing riskier global environment that threatens supply chains.

Uncertain times often require creative measures. As shippers look to replenish inventory levels as well as budget logistics costs in such an unpredictable environment, partnering with a freight forwarder such as JAS helps to reduce such risks and cost concerns.

JAS has always worked closely with shippers to offer solutions that balance planning with responsiveness and agility. The COVID-19 pandemic highlights this need as shippers continue to benefit from the expertise of JAS during this crisis.

For several years, JAS Italy has worked with several Italian Government institutions by serving their logistics requirements. The relationship has become even closer during the pandemic as JAS took charge of a certain Italian Government institution’s import/export distribution process to obtain and distribute Personal Protective Equipment (PPE) commodities.

JAS initially arranged shipments from China, Brazil, and South Africa mainly through general cargo urgent flights. However, as demand dramatically increased, JAS recognized that the available market capacity was not meeting the needs of its customers. As a result, JAS ramped up the use of charter flights to better meet customer requirements.  

Since February, JAS has moved millions of masks along with protective suits, visors, gloves, respirators, pulmonary ventilators, test tubes, and swabs.

By chartering flights, JAS was able to help other customers as well. For example, a German-based provider of medical and hygiene products turned to JAS to supply N95 masks to the governments of Germany, Belgium, Luxembourg, and the Netherlands. JAS utilized multiple chartered flights from Shanghai to Frankfurt to distribute not only to the governments involved but also to pharmacies for wider distribution to non-governmental organizations and the public at large.

JAS was able to support customers in Peru, Colombia, and Mexico building southbound connections with the charter flights arriving to the USA from Asia.

The ability to rapidly charter flights between countries could not have been accomplished in such a quick and efficient manner without the expertise of the JAS World Air Freight Team (WAT) whose close relationship with a number of aircraft owners allowed JAS to find the right equipment, mostly 747-8 and 747-4 cargo planes, at the right time and in the right location for its customers.

Collaboration with JAS China was crucial as requirements for moving Personal Protection Equipment changed almost on a daily basis. Communication was a key success factor with JAS China establishing a daily communication channel to keep the whole JAS network up to date with the latest information.

JAS has now implemented full scheduled flight operations in the transatlantic corridor. Offering weekend flights from Chicago to Frankfurt and back.

JAS is also continuing special charter flights both with cargo aircraft or ghost flights from Shanghai to Chicago and from Hong Kong to Los Angeles.

Milan to Bangkok Perishables Flight Service Map
JAS Thailand Offers Perishable Goods Service By Air from Italy

Located in the center of southeast Asia, Thailand is the second-biggest economy in ASEAN and a major global tourism destination. This dynamic and consumer-driven market is increasing its demand for imported food and beverages, offering many opportunities for Italian exporters. JAS Thailand is proud to launch a weekly air freight consolidation for perishable goods from Italy, catering to the demanding needs of the most reputable hotels and restaurants of the country. We carry perishable goods such as fresh fish, meat, cheese, vegetables, and also ‘super’ fresh cheese (like mozzarella or burrata) and frozen foods to Bangkok.

This JAS AIR Service features the following benefits:

  • Weekly departure on world class carrier
  • Airport to Airport transit time : 11 hours
  • Flexible processes oriented to provide customers tailor-made solutions
  • Integral/integrated : JAS can complement air portion with Origin (pick up/warehouse/consolidation/customs brokerage) value added service solutions to ensure the smoothest release at destination.

Please visit JAS Thailand country website and / or reach out to thsales@jas.com for more information.

JAS China Provides Green Store Delivery Service

JAS China is pleased to announce its partnership with two of the world's top fast fashion groups. Fast fashion refers to fashion retailers who are able to move from the catwalk to retail market quickly.

Starting in 2019 JAS began providing green store delivery using electric vehicles for these businesses, covering more than 40 shops in 5 cities including Beijing, Tianjin, Shijiazhuang, Langfang, and Tangshan in North China. The estimated volume being transported is currently at 20,000 CBM/year, with the the store delivery service in Beijing having an on-time delivery performance of 99% specifically.

All by means of electric vehicles, JAS China picks up the replenishment from the warehouse, delivers to the stores across Beijing city, and sends back the empty recycling boxes to the warehouse.

The service is offered non-stop, year-round, with a maximum of 3-4 deliveries per day for each shop. This model helps our clients to reduce warehouse space in their retail space and receive replenishment of inventory quick enough to support their sales, all while reaching the carbon dioxide reduction target.

Starting in October 2019, JAS China started the second wave of the green energy vehicle store delivery service. JAS picks up cargo from the client at the PEK airport area and then extended the delivery from just Beijing to the client’s additional shops in Tianjin, Shijiazhuang, Langfang, and Tangshan.

Thanks to the fast development of electric vehicle technology, JAS China is helping our clients switch delivery service to a green model in order to protect our environment not only in North China, but also in the whole country.

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