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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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Jenna Naylor

Meet Jenna Naylor, a luminary at JAS Charleston, whose journey from a customs entry writer to an award-winning business development manager represents the boundless opportunities for growth within JAS. 

Jenna's path into logistics was more serendipitous than planned. Initially set on a career in journalism, envisioning herself as a frontline reporter or news anchor, she pursued this track through her college studies. However, a pivotal moment a month before graduation saw her reevaluating her aspirations. "I understood the communications industry, I had success in my work in college, but I didn't want to be a reporter anymore," she reflects. So, in what many can describe as "typical Jenna fashion," she embraced change and dared herself to explore new uncharted waters, literally.  

As fate would have it, her first post-college interview landed her a role at a logistics company, where she started as an ocean import specialist. After mastering this role in 1 year, she eagerly transitioned to export, driven by her innate thirst for new challenges.  

In 2014, Jenna joined JAS as a customs entry writer, eventually expanding her responsibilities to manage the Charleston branch's air imports while also diving into the intricacies of the quoting process. Her growing expertise across various domains fueled her hunger for growth. "I had worked in customs entry writing, ocean import, ocean export, air import, and quoting. So, I asked myself again, what can I do next?" 

Fueled by her desire to tackle new challenges, Jenna set her sights on sales, leveraging her deep understanding of JAS's services. Her dedication was unmistakable as she pursued and earned her customs brokerage license, underscoring both her ambition and JAS's commitment to nurturing internal talent. She continued her path of success, earning new business and slowly growing her client base.  

In a proactive sales approach, Jenna launched the #JavawithJenna series on LinkedIn, leveraging her communication background to attract new audiences and generate leads, flipping the traditional cold-calling approach on its head. 

Now, in her newly acquired role as the Head of Country Sales for the Automotive Vertical, Jenna continues her quest for growth, always seeking the next challenge to conquer.  

In her nearly ten years at JAS, Jenna has flourished in an environment that she describes as eclectic and welcoming—a true melting pot of diverse backgrounds and perspectives. She credits the unique culture of JAS for fostering an environment where collaboration and growth thrive.  

Jenna's leadership style is marked by patience—a quality she believes is integral to navigating the complexities of the logistics industry. Her mentor, Brandon Miller, Vice President of Automotive Sales - Americas, has played a pivotal role in shaping her journey, emphasizing the importance of perseverance and passion in achieving success. 

Looking ahead, Jenna's focus is on expanding the automotive vertical, a challenge she embraces with enthusiasm, of course. She finds fulfillment in the dynamic nature of logistics, a field that demands constant learning and adaptability. Her advice to aspiring salespeople echoes her own journey: always be closing, challenge yourself to grow, and find joy both in and outside of work. 

Jenna Naylor's story embodies the spirit of Women@JAS, showcasing not just her individual achievements but also the collective strength and support that define the JAS culture. Congratulations, Jenna, on your well-deserved recognition as JAS USA's 2023 Salesperson of the Year and the #1 Global Business Development Manager Earner. Your journey inspires us all to reach greater heights and embrace every opportunity for growth. 

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.

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