NEWS FROM jas wORLDWIDE

In a world facing pressing environmental challenges, the need for carbon reduction has become a priority for industries worldwide. The Transport and Logistics sector plays a key role in global trade and commerce, and the Science Based Targets Initiative (SBTi) serves as a framework for empowering companies within this sector to establish ambitious carbon emission reduction targets.

Let us explore the significance of SBTi and how it is shaping the future of the Transport and Logistics industry.

What is SBTi?

The Science Based Targets Initiative (SBTi) is a collaborative initiative driven by several prominent organizations, including CDP, World Resources Institute (WRI), the United Nations Global Compact (UNGC), and the World Wide Fund for Nature (WWF). Its overarching mission is to support companies in aligning their emissions reduction targets with scientific evidence to hold global warming at 1.5°C above pre-industrial levels. SBTi provides a comprehensive framework for the setting and validating such targets for companies across various industries.

The Transport and Logistics Industry's Role

The Transport and Logistics industry significantly contributes to global emissions due to the substantial fuel consumption of ships, trucks, airplanes, and other vehicles within the supply chain. As such, this plays a critical role in mitigating climate change, and companies are increasingly recognizing their environmental responsibilities and have started developing carbon reduction targets.

These carbon targets can cover emissions from various scopes, including direct emissions (Scope 1), energy consumption (Scope 2), and indirect emissions from the upstream and downstream supply chain (Scope 3).

Commitment to Net-Zero by 2050 

As the Transport and Logistics industry continues to transform, JAS Worldwide has proactively embraced sustainability and carbon reduction. We are fully committed to establishing a science-based target in alignment with the Science Based Targets initiative (SBTi) aimed at achieving Net Zero emissions by the year 2050. 

Through our commitment to SBTi, JAS is setting clear and measurable targets and taking tangible steps towards combatting climate change.

Recognizing our industry's role in advancing and strengthening the global economy and understanding that collective action yields a greater positive impact, we invite our business partners to join us in making strides toward a more sustainable future.

Committing to becoming net zero by 2050 -or earlier- is a step in the right direction. By leveraging the SBTi framework, our efforts contribute to a healthier planet and inspire positive change while creating value for stakeholders.

As the European Union (EU) heightens its climate ambitions, there are increasing regulations related to "carbon leakage." This phenomenon occurs when EU-based companies shift carbon-intensive production to countries with less strict climate policies, potentially increasing emissions. To address this, the EU has introduced the Carbon Border Adjustment Mechanism (CBAM), an environmental regulation designed to establish a fair price for carbon emissions associated with the production of carbon-intensive goods entering the EU. Its purpose extends to encouraging cleaner industrial practices in non-EU countries. 

Goods Covered in the Initial Phase: 

The CBAM's scope encompasses products like cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen in the transitional phase. Moreover, there are plans to evaluate the possibility of expanding the range of covered products by 2030, potentially including additional sectors. 

Impacts: 

• Importers must carefully track and report emissions data for their imported goods. The European Commission is developing IT tools to help importers report and manage this data. 
• Non-compliance with reporting requirements may result in financial penalties. 
• The regulation introduces an additional layer of complexity in the import process. 

Timeline: 

As the CBAM unfolds between 2023 and 2035, it will have significant implications for industries, global competitiveness, and the fight against climate change. Here are some key dates to keep in mind: 

• October 1, 2023: The CBAM enters its transitional phase. Importers of carbon-intensive goods begin reporting embedded greenhouse gas (GHG) emissions. 
• January 31, 2024: The first reporting period for importers concludes. Flexibility in reporting methodologies is allowed. 
• January 1, 2025: Reporting using only the EU method becomes mandatory. 

Benefits: 

• Importers disclosing emissions data enhances transparency about the carbon impact of goods. 
• The regulation incentivizes importers to choose lower-emission products, driving sustainable choices. 
• Imported goods are subject to emissions reporting similar to domestically produced goods, leveling the playing field. 
• The regulation raises awareness about carbon emissions associated with international trade. 

How Can JAS Support You? 

• EU Import Customs Clearance: Our team of customs experts consult you and assist you in expediting the customs clearance process and the complexity of tariff codes, duties, taxes, and international trade regulations.* 
• EU Regulation Monitoring: We keep you informed about CBAM updates and evolving regulations, ensuring you remain compliant and adaptable to changes. 

*The importer is at all times responsible for providing all documentation related to customs clearance, including correct shipment/tariff and emission-related data. 

JAS Indonesia, in partnership with the Bruni Foundation, marked International Literacy Day (ILD) by organizing the "Book Donations for World Literacy Day" event on September 8, 2023. Led by JAS Sustainability Ambassador Sigit Yulianto, this event exemplified the team's dedication to championing literacy as a fundamental human right and their commitment to positively impacting the community.

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Held at a local school, the ILD event showcased the incredible potential of collective community action. Its success was driven by a joint effort: prior to the event, the JAS office initiated a book donation campaign among its employees, and a group of JAS Indonesia colleagues volunteered to represent JAS at the local school. However, the event went beyond mere book donations; the team also shared food, drinks, and moments of joy, fostering an atmosphere of unity that enriched the day.

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The teams' actions serve as a reminder that when individuals and organizations unite for a common purpose, they can create positive change. Literacy is not merely about reading; it is a pathway to a brighter future for all.  

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The Sustainability Ambassadors at JAS play a key role in spearheading and executing sustainability initiatives. They are driven by a passion for creating a more sustainable organization and work closely with the Worldwide sustainability team and key stakeholders. Their expertise and influence serve as catalysts for transformation, inspiring and guiding others to contribute to a greener and more inclusive future.  

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International Literacy Day has been observed globally on September 8 since 1967, emphasizing the significance of literacy as a basic human right. It also serves as a call to advance progress towards achieving Sustainable Development Goal 4 (SDG4) on education and lifelong learning.

As part of ongoing efforts to combat climate change, the European Union (EU) has extended the Emissions Trading System (ETS) to include CO₂ emissions from all large ships entering EU ports. Starting in January 2024, this move will hold shipping companies accountable for their carbon footprint, fostering energy efficiency and incentivizing low-carbon solutions within the maritime logistics industry.

Inclusion of Maritime Emissions in the EU ETS:

In May 2023, the EU officially adopted amendments to the ETS Directive and the Regulation on the Monitoring, Reporting, and Verification (MRV) for maritime transport. These amendments will integrate maritime emissions into the ETS, encompassing 50% of emissions from voyages starting or ending outside the EU and 100% of emissions between two EU ports or when ships are within EU ports. This step will apply to all large ships of 5,000 gross tonnage and above, irrespective of their flag.

Transition Period and Compliance:

To facilitate a smooth transition, shipping companies will gradually be required to surrender emission allowances for a portion of their reported emissions:

• In 2025, they have to surrender allowances for 40% of their emissions reported in 2024.
• In 2026, the percentage will increase to 70% for emissions reported in 2025.
• From 2027 onwards, they must surrender allowances for 100% of their reported emissions.

Impact on the Maritime Logistics Industry:

• Compliance Costs and Financial Implications: Companies will face extra expenses as they are now required to purchase and sell emission allowances. In order to stay within their allotted allowances, substantial capital investments will be necessary for the adoption of emission-reducing technologies and sustainable fuel alternatives.
• Operational Adjustments: Shipping companies must optimize vessel routes, reduce idle times, and adopt slow steaming practices to align with emission reduction targets. This will require careful planning and coordination to maintain the efficiency and effectiveness of supply chain logistics.
• Market Competitiveness and Differentiation: Companies embracing sustainable practices will gain a competitive edge as eco-conscious customers and businesses are increasingly prioritizing environmentally responsible shipping solutions.
• Collaboration and Information Sharing: Close collaboration with authorities, port operators, and stakeholders will help ensure accurate emission reporting and progress monitoring.

Conclusion:

Including maritime emissions in the EU Emissions Trading System marks a significant shift for the maritime logistics industry. While compliance with the regulation will present challenges, it also creates opportunities for the sector to embrace sustainability, foster innovation, and collaborate effectively to contribute to a greener future.

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.

In a display of cross-functional teamwork, several internal teams at JAS worked closely to execute a seamless transportation operation. The collaborative effort aimed to transport a large number of Lithium-Ion Batteries (UN 3480, Class 9) from Chicago O'Hare International Airport (ORD) to Frankfurt Airport (FRA), supporting a leading European Original Equipment Manufacturer (OEM) producing electric vehicles (EV).

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Challenge:

The automotive landscape is transitioning towards sustainable solutions, with electric vehicles leading the way. However, sourcing the necessary components, such as Lithium-Ion Batteries, often poses significant logistical challenges due to their hazardous nature, requiring compliance with stringent regulations and safety protocols. A leading OEM in Europe required a substantial shipment of batteries from the US to support its EV production. Blue World Atlantic charter flight operations presented an opportunity to avoid relying on a market yielding minimal results with minimum quantities per flight.

JAS's Response: 

Recognizing the urgency and importance of the situation, the JAS teams quickly created a plan. The batteries were carefully packed, labeled, and documented in accordance with local and global regulations. Additionally, a plan using JAS' existing Blue World Atlantic weekly charter was organized, allowing for direct transportation and minimizing the risk associated with intermediate stops. 

Results and Impact: 

After taking over the project as airlines simultaneously announced embargoes on cargo containing Lithium-Ion Batteries, the team successfully transported the Lithium-Ion Batteries on JAS Blue World Atlantic weekly charter, allowing the customer's supply chain to remain uninterrupted.

Recently, JAS successfully executed a large air freight project connecting China, the United Kingdom, and France. The project catered to a prominent French pharmaceutical company's highly anticipated product launch, highlighting JAS's ability to handle large shipments with precision and efficiency. The Toulouse Branch Manager of JAS France, Khalid Aabiza, played a key role in securing the business and overseeing the project's execution.

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The French pharmaceutical company's product launch in the United Kingdom required the transportation of a vast number of paper containers/cups from China. With over 400 pallet cargoes divided into three lots, each carrying strict deadlines, the challenge was immense. The urgency to meet these deadlines and the need for high visibility and real-time updates on cargo status presented critical objectives for the customer.

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Addressing these challenges head-on, JAS provided a comprehensive solution that showcased its expertise and commitment to excellence. Through effective communication with the shipper in China, the JAS team optimized the capacity plan, ensuring flexibility and streamlined execution. The JAS team offered a full solution within just five days, leveraging optimal carrier combinations and strategic partnerships with multiple large airlines.

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To meet the customer's requirements for real-time updates and high visibility, the JAS Shanghai team collaborated closely with teams in France and the United Kingdom, sharing daily planning and monitoring sheets. This seamless communication and coordination played a key role in the project's success.

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The project culminated in the safe and timely delivery of over 500 pallets and 700+ CBM of cargo to London Heathrow Airport (LHR). JAS's execution and dedication earned appreciation from the customer, solidifying its position as a reliable partner for complex logistics operations.

With this success, JAS reaffirms its position as an industry leader capable of handling large-scale logistics with precision and timeliness. As the logistics landscape continues to evolve, JAS's commitment to customer satisfaction and operational excellence remains strong.

In an exciting move to better serve its clients and tap into the growing market potential, JAS Germany is excited to announce the launch of its new fully operating branch in Leipzig, Germany. The branch, which started business on July 1st, represents JAS' third location in eastern Germany and a significant addition to its expanding network.

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The newly established branch is strategically positioned in Leipzig, a booming city with a strong presence industry presence. With a comprehensive range of services covering both Air and Ocean Freight, JAS aims to provide its clients in the local market with unparalleled, high-quality service.
Heading the branch is Patrick Herrfurth, an experienced professional with extensive experience in the freight forwarding industry and an in-depth understanding of the local market. As the Branch Manager, Herrfurth brings with him a proven track record of success and a commitment to delivering exceptional logistics solutions to JAS clients.

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"We are thrilled to open our doors in Leipzig and mark this as an essential milestone in our growth strategy," said Herrfurth. "This new branch not only strengthens our presence in eastern Germany but also underscores our dedication to meeting the market's rising demands and offering the best possible services to our customers."

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The Leipzig branch currently boasts a team of six skilled employees, including dedicated sales personnel. JAS is confident that this dynamic and well-equipped team will play a key role in providing efficient and reliable logistics solutions to businesses in the region.

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"The decision to expand our operations in Leipzig was driven by the city's fast-growing and high-potential market," said Manuel Kießling, Director Sales & Marketing, JAS Germany. "We believe that our extensive global network, combined with the expertise of our local team, will make JAS the preferred choice for businesses in this area seeking seamless freight forwarding solutions."

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With a commitment to innovation, customer satisfaction, and sustainable logistics practices, JAS continues to cement its position as a leading player in the freight forwarding industry. The new branch in Leipzig is a testament to JAS' dedication to staying at the forefront of the logistics sector and providing best-in-class services to its customers.

JAS Germany, is delighted to announce the commencement of an initiative that underscores its commitment to fostering international talent and promoting cross-cultural exchange. On July 5th, five trainees, Anna (MHG), Anabel (BER), Bennet (HAJ), Georgette (FRA), and Simona (CGN), from JAS Germany headed to the United States, aiming to gain valuable experience abroad while training in the USA during the next eight weeks.

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The journey began at Frankfurt airport, where the trainees, filled with enthusiasm and a spirit of adventure, embarked on their transatlantic voyage. Prior to their departure, the trainees were given the opportunity to visit JAS’ headquarters in Germany. The tour offered valuable insights into the company's operations and culture laying a strong foundation for their upcoming experiences abroad. Additionally, they were given words of encouragement from Managing Director, Volker Werner.

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Throughout their eight-week stay in the USA, the trainees will immerse themselves in various facets of international logistics, freight forwarding, and supply chain management. They will have the unique opportunity to interact with industry professionals, collaborate on real-world projects, and gain hands-on experience in diverse operational settings. Moreover, the apprentices will be maintaining a comprehensive diary, documenting their professional experiences and personal reflections, providing an account of their journey.

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JAS is dedicated to nurturing the growth and development of its employees, and this initiative exemplifies the organization's commitment to investing in young talent. JAS firmly believes that such immersive international experiences not only enrich the trainees' professional acumen but also foster a broader global perspective, essential in today's interconnected world.

In the pursuit of a greener future for transportation, JAS Worldwide, in collaboration with GLC - Göteborgs Lastbilcentral, proudly unveiled their first electric truck in Sweden earlier this year.

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Operating within the greater Gothenburg area, this electric vehicle uses clean, renewable electricity, delivering remarkable results in terms of environmental impact. Compared to traditional diesel trucks, the VOLVO FM6x2T TE achieves an impressive 92% reduction in CO2 emissions when considering the entire Well-To-Wheel (WTW) cycle.

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The successful implementation of this electric truck marks an important milestone for JAS Worldwide and GLC, as they introduce greener transportation options for their customers. By collaborating with manufacturers, suppliers, and customers, JAS Worldwide aims to bring about benefits for all parties involved while setting an example for the industry.

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JAS Worldwide remains at the forefront of sustainable initiatives and continues to explore additional solutions and collaborations as it works towards an even more sustainable future.

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JAS Worldwide is excited to announce its sponsorship of the Dana Open. This annual event, one of the longest-running on the LPGA Tour, is set to take place from July 10th to July 16th, 2023, at the Highland Meadows Golf Club in Sylvania, Ohio, United States.

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Founded in 1984, the Dana Open has become a significant philanthropic force, raising funds for numerous local children's charities. Throughout its more than 30-year history, the tournament has raised over $13.5 million, benefiting more than 215 organizations, such as the Ronald McDonald House Charities and Read For Literacy which are dedicated to supporting the well-being of children within the local community.

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As a family-owned business committed to giving back, JAS recognizes the impact that the Dana Open has on the lives of those it serves. By participating in this event, attendees and sponsors alike are actively contributing to the well-being and success of the community's youth, helping to shape a brighter future for generations to come. We hope to inspire others to join us in our mission to make a positive difference in the lives of those who need it most.

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JAS extends its gratitude to the organizers, volunteers, players, and sponsors of the Dana Open.

In today's fast-paced world of logistics, staying ahead requires constant innovation and optimization. JAS understands the significance of utilizing cutting-edge technologies to improve efficiency and drive productivity. That's why we have fully embraced automation and seamlessly integrated robots into our warehouse operations at our Contract Logistics facilities. This includes our recently opened warehouse in Memphis, Tennessee, USA. This exciting technology benefits both our picking teams and the overall logistics process.

Enhancing Productivity: One primary advantage of incorporating robots into our warehouse operations is their ability to work alongside our picking teams, improving their productivity and efficiency. Collaborating with our human team members, these robots take on repetitive and time-consuming tasks, allowing our team members to focus on the more complex and value-added tasks. This dynamic partnership increases productivity levels, enabling us to meet customer demands quickly and accurately.

Reducing Non-Value-Added Travel Time: Deploying robots in our warehouse significantly reduces non-value-added travel time. Instead of pickers manually pushing carts and transporting goods long distances, our automated helpers efficiently transport them from the picking area to the shipping station. By reducing non-value-added travel time, we can optimize workflows and increase overall operational efficiency resulting in time and cost savings for our customers.

Versatile Performance: Our robots excel in various order scenarios, accommodating both batch picking for e-commerce orders and big orders with oversized items and high unit counts. Their versatility and adaptability make them invaluable assets in handling diverse order volumes and requirements, enabling us to meet customer demands across a wide range of industries efficiently.

Real-Time Data Visibility and Analytics: With the help of our robotic team members, we have achieved real-time data visibility and analytics. This data-driven approach allows us to optimize our operations, identify bottlenecks, and implement continuous improvements while maintaining the highest standards of accuracy and efficiency. Our teams can monitor, troubleshoot, and expand robot functionality from anywhere in the world.  

At JAS, we believe that embracing automation and integrating robots into our warehouse operations is key to driving efficiency and meeting the needs of today's rapidly evolving industry. With robots as our trusted teammates, we are well-equipped to meet the needs of today, all while providing exceptional service to our valued customers.

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To learn more about our services and how they can benefit you, please visit our contract logistics webpage.