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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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JAS completes the Acquisition of IAA

ATLANTA, February 20, 2025 – JAS, a global leader in logistics and supply chain solutions, has successfully completed its acquisition International Airfreight Associates B.V. ("IAA"), a specialized provider of Air, Ocean and Road Freight services headquartered in the Netherlands. This milestone follows the signing of the Share Purchase Agreement (SPA) announced in December 2024 and marks the official integration of IAA into the JAS network.

"The acquisition of IAA strengthens the JAS global logistics portfolio and access to key markets, particularly in the time-critical perishable goods sector," said Marco Rebuffi, CEO and President of JAS. "We are proud to welcome IAA's talented highly experienced team to JAS and are looking forward to delivering excellent service to our customers together."

Jur de Graaf, Managing Director of International Airfreight Associates, added, "Joining JAS allows us to expand our services globally and continue delivering high-quality logistics solutions for our customers. We are confident that our partnership will create new opportunities for our employees, partners and clients.”

IAA is one of the top 3 IATA forwarders at Amsterdam Schiphol Airport with Warehouses and Operations in the Netherlands, Belgium and Germany. IAA specializes in managing time-sensitive perishable fresh goods and livestock shipments as well as multimodal general cargo.

The acquisition strengthens JAS global service portfolio by enhancing the footprint in the European logistics market and beyond. Together, JAS and IAA teams will drive customer value through expanded service offerings, operational excellence, and an even broader global network.

About JAS

JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, and supported by 7,000+ team members in more than 100 countries, JAS focuses on creating solutions that are innovative, sustainable, and tailored to customer needs. As a privately owned company, JAS is committed to creating opportunities for communities, customers, and colleagues to thrive.

About International Airfreight Associates B.V.

International Airfreight Associates B.V. ("IAA") is a specialized provider of Air, Ocean and Road Freight services headquartered in the Netherlands. With nearly 100 employees and strategic locations and operations including Amsterdam, Aalsmeer, Rotterdam, and Frankfurt, the company specializes in moving fresh perishable goods, livestock and multimodal supply chain solutions for a diverse range of clients.

JAS Poland proudly took home three awards at the Lufthansa Cargo Partner Event in Warsaw, recognizing our outstanding performance in 2024.

On January 24, 2025, industry leaders gathered at the Renaissance Warsaw Airport Hotel to celebrate a year of collaboration with Lufthansa Cargo.

The evening brought together key partners to reflect on past achievements, discuss future opportunities, and recognize outstanding performance across the logistics sector.

JAS Poland had a standout night, earning three awards for exceptional performance in 2024:

  • 1st Place – Jumper of the Year 2024
  • 2nd Place – Performer in Revenue
  • 3rd Place – Performer in WACD Market Share

The event featured an inspiring speech by Ashwin Bhat, CEO of Lufthansa Cargo AG, and a panel discussion on the evolving landscape of e-commerce. The awards gala was a testament to the strong partnerships and shared success within the industry.

A heartfelt thank you to Lufthansa Cargo for their continued trust and collaboration. Here’s to another year of reaching new heights!

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The European Union's Sustainable Aviation Fuel (SAF) mandate is set to reshape the aviation industry, requiring airlines to incorporate a minimum of 2% SAF in their fuel mix starting in 2025. This regulation represents a major step toward reducing carbon emissions, but it also brings substantial cost challenges for carriers operating across Europe.

Impact on Freight Costs and Sustainability Surcharges

The implementation of the SAF mandate is driving up operational costs for airlines, directly influencing freight rates. To offset these additional expenses, airlines are introducing mandatory sustainability surcharges on shipments departing from or transiting through European airports. While this presents immediate financial challenges, it also serves as a catalyst for innovation and investment in alternative fuels, paving the way for a more sustainable aviation sector.

Balancing Cost and Sustainability

As airlines adapt to these regulatory changes, they must navigate the delicate balance between cost management and environmental responsibility. The evolution of SAF production, along with advancements in supply chain logistics, will play a critical role in determining how efficiently the industry can meet these mandates. Collaboration between fuel suppliers, airlines, and logistics partners will be essential to ensuring a smooth transition.

Stay Informed with JAS

To help our customers understand the implications of this new regulation, we invite you to download HERE the JAS One-Pager on the ReFuelEU Aviation Regulation. This resource provides a clear and user-friendly overview of the changes and their impact on airfreight logistics. Additionally, you can visit the ReFuelEU Aviation Regulation website for further details (ReFuelEU Aviation Regulation website )

At JAS, we are committed to clear and transparent communication regarding regulatory changes affecting global supply chains. If you have any questions or concerns, please do not hesitate to contact your nearest JAS representative for more information and tailored support.

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