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Navigating the Green Revolution: How the Logistics Industry Helps Drive the Transition to Clean Energy Resources

By
January 26, 2024
The logistics industry plays a key role in the transition to clean energy.
The logistics industry plays a key role in the transition to clean energy.

In recent years, the global community has witnessed a significant shift towards renewable energy sources, driven by a growing awareness of environmental sustainability and the need to address climate change. This shift is particularly pronounced in the oil and gas industry, where companies are increasingly focusing on sustainability and environmental responsibility. The logistics industry now plays an increasingly vital role in addressing the distinctive freight forwarding requirements that accompany this energy transition.

Supply Chain and Logistics Companies as Key Enablers

Behind the scenes of this shift towards renewable energy, supply chain and logistics companies like JAS are helping the adoption of clean energy become a reality. These companies are responsible for helping facilitate the specialized transport of needed resources.

Key Contributions of Logistics Companies

  • Specialized Transportation: The sheer size and weight of components such as solar panels and subsea cables for electric offshore platforms, wind turbines for on or offshore farms, as well as the specialized equipment needed to capture, transport, and store carbon dioxide in Carbon Capture and Storage Facilities necessitate specialized logistics solutions. This involves careful planning, route optimization, and adherence to strict safety standards.
  • Comprehensive Trade Compliance: Logistics companies also contribute significantly by ensuring comprehensive trade compliance. These large projects often involve sourcing materials and components from around the world which means navigating complex international regulations, managing documentation, and adhering to trade laws. By facilitating seamless and compliant cross-border movements, logistics companies play a crucial role in supporting the global transition to cleaner energy practices.
  • Global Supply Chain Management: When transitioning to more renewable energy resources, the projects often involve coordinating materials and components from various locations worldwide. Logistics companies are adept at managing complex global supply chains, ensuring that all necessary parts arrive on time and in optimal condition for assembly.
  • Supply Chain Visibility through Advanced Technologies: To help companies manage and optimize their supply chains, logistics companies are leveraging smart digital platforms and tools. In the weeks and years to come, energy supply chains will increasingly rely on advanced track and trace tools. This increased enhanced visibility ensures real-time tracking of shipments and better overall efficiency in the supply chain as issues can be identified and addressed proactively, contributing to a more seamless transition to cleaner practices.

Embracing Innovation

In addition to their operational roles, logistics providers also embrace innovation to reduce their carbon footprint. The adoption of electric and hybrid vehicles in transportation fleets, the implementation of sustainable packaging practices, and the integration of renewable energy sources into their own operations showcase the commitment of logistics companies to environmental stewardship.


As renewable energy sources develop and expand across the globe, the logistics industry will play a pivotal role in ensuring a smooth transition away from fossil fuels. Supply chain logistics companies' specialized skills and resources will become increasingly important as renewable energy resources become more widespread. As we celebrate International Clean Energy Day, JAS is excited to play a part in creating a greener world, not only today but every day.

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With job actions suspended and ports resuming operations, efforts are now focused on clearing the significant backlog caused by the three-day strike. Full recovery is expected to take most of October, as dockworkers manage the accumulated vessels and cargo.

Carrier Actions: Force Majeure and Surcharges

In response to the disruption in the past days, major carriers like COSCO, ONE, CMA CGM, and Evergreen declared force majeure, which could lead to additional fees for shippers in the coming weeks. As the strike forced many carriers to divert containers to alternative ports, delays and added complications may persist.

With port operations now resuming, shippers should remain alert to detention and demurrage fees, as the previous suspension of these charges during the strike has ended, with trucks waiting outside the gates also those charges are to be expected. The ongoing congestion is expected to exacerbate these costs. Many carriers have also announced disruption surcharges, set to take effect by mid-October. However, shippers should not be surprised if these charges do not always materialize, as carriers often announce such fees without clarifying when they will be withdrawn. Shippers are encouraged to review their contracts and force majeure clauses to better understand potential additional costs.

Global Market Disruptions Ripple On

Although the strike is over, its effects are expected to ripple across global markets. In about two weeks, there may be a temporary reduction in export capacity from Europe, further driving up freight rates. This disruption could spread to other regions with a delayed impact. Global logistics networks will take time to fully stabilize, and rate volatility is likely to continue.

Air Freight Surge as Ocean Capacity Tightens

With ocean freight constrained, shippers are turning to air freight, causing rates to rise sharply. Time-sensitive shipments, in particular, are facing higher costs as air freight capacity is stretched. Businesses relying on fast deliveries should brace for continued increases in air freight costs.

JAS Worldwide: Supporting Your Supply Chain Needs

JAS Worldwide remains committed to helping businesses navigate these challenges. Our teams are actively monitoring the situation and are ready to provide customized solutions to minimize disruptions. Whether you need alternative air freight services, rerouting assistance, or expert advice, JAS Worldwide is here to support your supply chain. Contact your JAS representative today to create a strategic plan that ensures your operations remain resilient and efficient.

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