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UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
March 15, 2024
Containers at port.
Containers at port.

Current Situation  

The Red Sea crisis enters its thirteenth week with escalating concerns about extended delays and widespread disruptions impacting the global container shipping network. Terminations of voyages and congestion surges at regional port terminals are happening with short notice, further complicating logistics. The underlying geopolitical tensions continue to cloud the situation, hindering a swift resolution. 

Industry Insights, Facts & Market Developments

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

  • Drewry's WCI composite index shows a further but slowed decline of 4% this week. Drewry expects spot rates ex-China to continue declining in the coming weeks, whereas freight rates on transatlantic will remain stable.  
  • US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, drones on land before they are being utilized. While successful engagement is cited, the past week has seen one of the largest and heaviest number of attacks from the Houthi militia. 
  • UKMTO (United Kingdom Maritime Trade Operations) reported today that a vessel has been struck by a missile causing damage, the vessel continued its voyage and the crew reported being safe.  
  • This past week has seen the highest number of attacks on commercial merchant vessels, container and breakbulk/conventional ships alike.  
  • The European Union (EU) expresses growing concern about the impact of the Red Sea Crisis on global supply chains and calls for a diplomatic solution. 
  • The Yemeni government accuses the Houthi militia of obstructing potential solutions to ensure safe passages in the Red Sea. 
  • Industry reports highlight a rise in insurance premiums for vessels traveling the Cape of Good Hope route due to the increased voyage time.  
  • The Houthi militia has today stated their intent to increase the geographical scope of attacks and in addition, potentially use hypersonic missiles, which they claim to have access to. If true, this would lead to further escalation of the current situation.  

Our Commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
February 16, 2024
Ships docked at the port during breathtaking sunset.
Ships docked at the port during breathtaking sunset.

Completing nine weeks of the Red Sea crisis, a tentative new normal emerges. While the timeline for re-routing through the region remains unclear, ocean carriers have largely adapted their schedules and ports of call, suggesting fewer operational disruptions on both primary and backhaul routes going forward. However, experts urge caution, emphasizing the inherent volatility of the situation and the potential for future flare-ups. 

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation.  

  • Leading analysts predict a prolonged Red Sea closure, which could last through 2024. Shippers should remain vigilant for further supply/demand disruptions. The only remaining carriers who traverse the Red Sea are smaller Asian carriers. 
  • The Houthi claim to be attacking only US, UK, and Israeli ships, but experts state this is rather subjective, and all ships are at risk in the Red Sea. 
  • US CENTCOM successfully intercepted missiles launched by Houthis in the past week, as well as launching several counterattacks.  
  • All major carriers continue to go around the Cape with extended Transit time and higher costs to follow. The supply chain has started to adjust to the new reality.  
  • More information has come out on EU Operation Aspides, which is set to last for one year, be purely defensive in nature with no attacks on Yemeni soil, and based on Greece.  
  • Hapag Lloyd is reducing their Operational Recovery Surcharge from US East and Gulf Coast to Asia effective February 16th, today, which was initially implemented February 5th only. While back haul related, a sign of relief. 
  • Drewry’s WCI, released yesterday, indicated that from Asia to Europe and the Mediterranean, it continued to decline, but the pace of decline slowed compared to the past week.  
  • Backhaul rates from Europe and the Mediterranean to Asia seem to be catching up, reacting to the crisis. Xeneta reported a 68% rise in North Europe to Asia and a 45% increase in Mediterranean rates since December 31st, 2023.  

Our Commitment 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

EMEA

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Containership at Port.
UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

Current Situation  

Eight weeks into the Red Sea crisis, a tentative new normal emerges. While the timeline for re-routing through the region remains unclear, ocean carriers have largely adapted their schedules and ports of call, suggesting fewer operational disruptions on both primary and backhaul routes going forward. However, experts urge caution, emphasizing the inherent volatility of the situation and the potential for future flare-ups.

Industry Insights, Facts & Market Developments
Below are some additional key facts and market developments surrounding the situation.  

  • Leading analysts predict a prolonged Red Sea closure, which could last through 2024. Shippers should remain vigilant for further supply/demand disruptions.
  • US CENTCOM successfully intercepted seven missiles and four drone boats before they could be used to target the shipping industry.
  • Two attacks on commercial vessels occurred in the Gulf of Eden and Bab al-Mandeb since our last update, causing minor damage but no injuries.
  • EU Operation Aspides expands under Italian leadership, adding a German frigate. They focus on intelligence, logistics, air warning, cyber, and communication support due to the "Information Warfare" dimension.
  • Eastbound spot rates to North Europe and the Mediterranean continue softening slowly, while backhaul rates to Asia see a delayed increase. Rates remain above pre-crisis levels with surcharges in effect. Expect continued volatility.

Our commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Container Ship
UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

Current Situation: 

Seven weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community started to announce network changes with more permanent routing changes around the Cape of Good Hope, with new transit times and an alteration of port calls. As more carriers get organized daily, we will see more of those actions being taken, which should bring a more consistent approach for the time being.  

  • Since our last update, there have been several attacks carried out by the Houthis, as well as an increased risk of piracy attacks from Somalia to add to this crisis. The latest attack occurred on February 1st on a UK flag tanker vessel, the “Marlin Luanda.”
  • The conflict has also moved into land where US troops have been attacked, which causes further instability and uncertainty in the region. So far, the attacks from US and UK armies have not slowed down the attacks by the Houthis.
  • US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen, and this is expected to continue. 
  • Leading maritime security firm Ambrey advised that Maritime security concerns continue to escalate in the Red Sea, Gulf of Aden, Arabian Sea, Gulf of Oman, and the Indian Ocean, with threats growing significantly more complex and widespread.  

Key Facts & Market Developments: 

Below are some key facts and market developments surrounding the situation.

  • Carrier Hapag Lloyd, given the on going dangerous situation and current security concerns, will continue to divert all vessels until further notice.  
  • Maersk Line Limited still states that transit through the Red Sea will be suspended until further notice. 
  • Carrier CMA-CGM still shows no change to its transit policy; we highlight again the need to carefully monitor vessel sharing agreement carrier shipments that may continue to transit on the same vessels.
  • Ocean Network Express (ONE) CEO Jeremy Nixon stated earlier this week that the ongoing attacks against commercial shipping will have a material impact on transit times on the Asia – Europe and Asia – US East Coast trade lanes at least through the second quarter of 2024.  
  • Rate levels continue to be higher than pre-crisis with new charges being announced such as Equipment Imbalance surcharges, however minor softening on spot rates has also been seen in certain pockets. Rate development remains dynamic and volatile.  

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Containers at Port
UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

Current Situation: 

Four weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The world’s largest container carriers (VOCC’s)continue to reroute, with a few exceptions, their vessels around the Cape of Good Hope. 

  • Three days ago, the Houthis launched their biggest attack yet, with very little overall impact. It has demonstrated the effectiveness of the coalition’s presence in executing area defense operations. 
  • Yesterday, the RAF and US Navy launched the first counterattack by the coalition in response to Houthi aggressions since this conflict started. Over one dozen vessels in the area made instant route changes, based on AIS data, to reach safe points or pursue the Cape of Good Hope.  
  • The situation and the future direction of this conflict remain dynamic and therefore unclear; however, expectations are that rerouting will continue. 

Carrier Responses: 

Below is a recap of the current situation as announced by carriers this week; however, the situation is very fluid and continues to evolve. 

  • Carriers at large continue to reroute vessels with scheduled services from the Suez Canal around the Cape of Good Hope. Vessel sharing agreements (VSA) need to be carefully monitored, as the vessel operator’s choice will include alliance partners. 
  • Several ocean carriers have stopped offering new long-term rate agreements in Asia to Europe and Mediterranean trade, as well as India Sub-continent services via Suez to the US East Coast. The reasons cited include the need to assess additional cost factors, a lack of clarity based on long diversions and rerouting, as well as equipment imbalance and berthing window impact. 
  • Global benchmarking platform Xeneta has reported space guarantee/premium surcharge offers being presented by ocean carriers up to $1500 per container to ensure priority services prior to Chinese New Year holidays, starting February 10th. 

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website will be updated once per week, every Friday. 

For any more detailed and/or shipment-specific information, please contact your local JAS office. 

Container Ship
UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

Current Situation  

Three weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. The world’s largest container carriers (VOCC’s) have chosen most of their voyages utilizing re-routing of their vessels around the Cape of Good Hope.

  • Vice Admiral Cooper, the NAVCENT commander, advised that the coalition of navy’s named “Operation Prosperity Guardian” has now doubled to 20 nations with more expected to join.
  • While there are challenges determining exact number of attacks, due to differing definitions, we continue to witness on / off reports daily citing attempted attacks, suspicious activity, or inconclusive incidents. Today, reports indicated “Drone Boats” being deployed by the Houthis for the first time.
  • Media outlets reported on December 24th, that over 120 ships carrying +1.7 million TEU’s had been impacted, compared to latest reports, 12 days later advising an impact of over 400 vessels carrying +5 million TEU’s.

Carrier Responses 

Below is a recap of the current situation as announced by carriers this week; however, the situation is very fluid and continues to evolve. 

  • The carriers at large continue to re-route vessels with scheduled services from the Suez Canal around the Cape of Good Hope. Vessel sharing agreements (VSA) need to be carefully monitored, as the vessel operator’s choice will include alliance partners.
  • Maersk, previously considering routing more vessels through the Suez, has decided to take the long voyage around Cape the Good Hope, after suffering more attacks in recent days.
  • In addition to even more surcharges being announced by carriers in direct and indirectly impacted trade lanes, carriers are now offering additional premium products, citing priority equipment release and loading.

Going Forward

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.

For more detailed and/or shipment specific information, please contact your local JAS office.

Dubai
DUBAI SEA/AIR GATEWAY SERVICE

All major US, European, and Regional Carriers operate directly out of Dubai to American and European destinations, making it an ideal Hub for a unique cost saving advantage.

The DXB and DWC cargo terminals and the JEA sea ports are designed and equipped to meet the needs of specific Sea Air products by combining the best features of air and sea services.

Capacity

The Sea Air acceptance docks at DXB, DWC, and JEA have the capacity to turnover in excess of 35 to 40 tons per hour.

Benefits

  • Lower cost option to air freight
  • Faster transit times than ocean freight
  • Reduced lead times
  • Comparatively lower C02 emissions

Ideal for Clients Who Ship:

  • E-goods
  • Mid-fashion goods
  • Retail goods
  • Controlled transport
  • Automotive from areas where uplift is scarce

JAS is committed to providing a high quality of services and competitive ranges. Today, our global network encompasses over 100 countries between JAS offices and official agents, and has over 7,000 employees globally.

For more information, contact your local JAS office.

Including maritime emissions in the EU Emissions Trading System marks a significant shift for the maritime logistics industry.
Introduction of the EU ETS (Emission Trading System) in the Maritime Industry

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 introduced groundbreaking regulations concerning energy efficiency and carbon intensity for all ships.
New IMO Regulations: Introducing Carbon Intensity Measures into Ocean Freight

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.

Peter Sinka, Vice President, Global Head of LCL
JAS Worldwide Expands to Drive Ocean Freight Consolidation Services

JAS Worldwide, a leading global logistics company, is thrilled to announce the appointment of Peter Sinka as the Vice President, Global Head of LCL. Sinka is a seasoned professional in the logistics industry, with over 17 years of experience in Ocean Freight and LCL product.

Sinka's career has taken him to various countries and cities, such as Slovakia, the USA, and Canada, where he has held multiple positions in operations, product and commercial development, and P&L responsibility. His wealth of knowledge and expertise in LCL product and Ocean Freight will be invaluable in driving JAS's strategy and development of one of the most critical products in Ocean Freight.

Sinka will be reporting to Lars Huebecker, Executive Vice President, Global Head of Ocean Freight. He is excited about his new role and the opportunity to work with JAS, saying, "I am very excited to join JAS to drive the strategy and development of one of the most important products in Ocean Freight. Supply chains are changing rapidly, and the demand for the LCL product will continue to rise at higher rates than ever before. JAS is well positioned to handle the increasing demand and to create value with LCL services to its customers."

With Sinka's appointment as Vice President, Global Head of LCL, JAS is well on its way to revolutionizing the seas and expanding its Ocean Freight Consolidation Services.

About JAS Worldwide

JAS was founded in 1978 in Milan, Italy, and its global headquarters is located in Atlanta, Georgia, USA. Over the last four decades, JAS has grown from regional roots to a global force in logistics covering all modes of transportation, including contract logistics and other sophisticated and digital-driven supply chain solutions. Today, JAS covers 100+ countries with over 7000 employees globally and continues to expand with its core culture, “People make the difference,” and its strong commitment to a sustainable future.

Jesper Jepsen, Vice President, Global Ocean Freight
Jesper Jepsen Named Vice President, Global Ocean Freight

The JAS Worldwide Ocean Freight team is pleased to share Jesper Jepsen has been promoted to Vice President, Global Ocean Freight Operations.

Jesper joined JAS in 2019 as Head of LCL & Consolidation Services as part of the USA team. In 2021 he joined the Americas Region as Ocean Services Director.

In his new role, Jesper will focus on leading the collaboration efforts connecting global product and operations, working closely with neighboring internal departments and outside vendors. Furthermore, in his position, he will lead the strategic, operational management roadmap for Ocean Freight Hubs and Capacity Management Teams.

About JAS Worldwide

JAS was founded in 1978 in Milan, Italy, and its global headquarters is located in Atlanta, Georgia, USA. Over the last four decades, JAS has grown from regional roots to a global force in logistics covering all modes of transportation, including contract logistics and other sophisticated and digital-driven supply chain solutions. Today, JAS covers 100+ countries with over 7,000 employees globally and continues to expand with its core culture, “People make the difference.”

As many shippers within the European countries look for innovative and sustainable transport options for moving goods, short sea shipping can be a practical option.
Short Sea Shipping: A sustainable choice

Did you know that shipping by shortsea can reduce your overall carbon footprint by as much 80% when compared to traditional road freight?

For those who traditionally use only road freight to move goods across long distances such as between South of Europe and The Nordics and Baltics, short sea shipping can be an innovative and sustainable transport option that can help reduce a shippers overall environmental impact.

With one feeder vessel carrying the equivalent of 500 truckloads of goods, short sea shipping provides great savings in both in terms of cost and CO2 emissions. Furthermore, it can reduce pressure on heavily congested roads helping mitigate issues associated with the truck driver shortage and increasing fuel rates.

With one organization managing all European transport solutions customers have access to one single point of contact designated to managing your flows regardless of transport mode. This opens up a range of alternatives on the same trade lane allowing for tailor-made solutions that best fit your needs.

Our team members are here to help you navigate the maze of different options and provide professional insights, while helping you implement and manage the transport solutions once a decision is taken.

For more information, reach out to your local sales representative to discuss solutions.

JAS’s LCL direct consolidated container services help customers keep their supply chains moving even when they are tight on time or do not have enough cargo to fill a full-container-load.
LCL Ocean Consolidation from Genoa: A solution to your urgent shipping needs

Needing to keep your supply chain moving but tight on time or don’t have enough cargo to fill a full-container-load?

LCL (less-than-container-load) service is the answer.

“Our LCL services are designed first and foremost with customers in mind. They can support the most immediate needs of our customers who are working on tight timelines or do not need the capacity or cost of a full container load.” said Stefano Castellazzi, Vice President - Sales & Marketing, Italy.

Other advantages of JAS’s LCL Direct Consolidated Container Services Include:

  • Priority boarding
  • Weekly departures
  • Dedicated Customer Service
  • Service under Blue World Line, JAS’s own NVOCC

Now through September, we are offering reduced rates on our services from Genoa, Italy (GOI) to Singapore (SIN), Hong Kong (HKG), Shanghai (SHA), and Busan (PUS).

Secure your space by contacting your local sales representative or emailing IT-Tradelane@jas.com.

As a part of the larger move towards more sustainable wine production, JAS offers short sea shipping services as an innovative transportation alternative to road freight.
Green Solutions for Wine Logistics

Wine has been produced in the Iberian Peninsula for many centuries.

Throughout Portugal, there are fourteen Delimited Wine Regions. Due to unique geography of the area, a variety of quality wines such as sparkling wines, white wines, red wines, rosé wines, and different kinds of vinegar can be found.

In 2015, Portugal’s Alentejo Region launched its award winning “Alentejo Wine Sustainability Program” (PSVA) in the region’s vineyards, in part, to promote more sustainable wine production environment.

As part of this move towards more sustainable wine production, JAS offers short sea shipping services as an innovative transportation alternative to road freight.

The service operates from Porto in Portugal to the Nordic region. Cargo for the Nordic market is consolidated from all over Spain and Portugal, where it is then shipped to Gothenburg for further distribution in the Nordics.

“This sustainable service option is a way for shippers to reduce direct emissions but also mitigate congested roads and shortage of drivers. It is our ambition to make it simple for our clients to switch to sustainable alternatives without having to recreate their entire supply chain, says Ari Malvela, Head of Road Freight.

Less than container load (LCL) allows you to ship smaller quantities more frequently. With weekly departures and fast transit times it is easier than ever to build supply chains that are both efficient and sustainable.

“Can we afford not to become more sustainable? This logistics solution is part of our initiative “Green Solutions” and reduces your environmental footprint up to 80% when compared to using road freight. One feeder vessel carries the equivalent of 500 truckloads, reducing the pressure on congested roads as well as the environment,” says Stefan Larsen, Ocean Freight Manager.

For more information about the Portugal Nordics Short Sea LCL Service, contact your local representative.

Short sea shipping provides great environmental, social, and economic advantages and plays a key role in sustainable shipping.
Green Solutions : Short Sea Shipping

Over time, the volume of goods being transported on European roads has steadily increased, leading to congested roads, delays, and unnecessary costs. As shippers look to avoid these issues, many are considering short sea shipping as a viable solution.

What is short sea shipping?

Short sea shipping is essentially container movement within Europe, but with a short time on the sea. Short sea shipping is an excellent alternative to road freight. However, it is not a matter of dismantling road transport. It is about environmentally smart alternatives that improve existing supply chains.

What are the advantages of short sea shipping?

  • Increased Reliability: One significant benefit of short sea shipping is that shippers receive goods in a reliable, consistent, and timely manner. Unlike road transport, which is prone to delays and irregular logistics flow due to congestion, short sea shipping allows for scheduled departures and arrivals.
  • A Sustainable Choice: Short sea shipping provides great environmental, social, and economic advantages and plays a vital role in sustainable shipping. Moving a significant volume of goods from road freight to short sea will positively impact road congestion, road safety, and noise levels. One feeder vessel carries the equivalent of 500 truckloads. Compared to using trucks only, this solution provides increased both in terms of cost and CO2 emissions.
  • Buy What You Need: The size of a container often determines the quantity purchased, but it is important to buy and transport only what is needed. A short sea solution enables shippers to avoid producing excess merchandise with no demand and risks being destroyed. Short sea shipping affords the opportunity to book smaller quantities resulting in fewer containers being utilized.
  • Cost-Efficient Alternative: Sea freight rates are considerably lower than road freight rates, especially when transporting larger freight volumes and heavier cargo. Transitioning from road freight to short sea allows shippers to circumvent the high freight rates associated with road transport. In the long term, moving large volumes to short sea and away from the roads of Europe would help restore the capacity imbalance in road freight and eventually remove lack-of-capacity surcharges.

For more information about short sea shipping solutions, contact your local sales representative.

Cargo ship at night
JAS Expands LCL Services

In response to increased demand for Less than Container Load (LCL) services, JAS Worldwide is pleased to announce that it is launching a new weekly LCL service from the Port of Gothenburg (GOT) to Charleston, South Carolina, USA (CHS).  

The global maritime market is continuing to experience high levels of demand while facing a lack of capacity, increased port congestion, and a shortage of empty containers. This environment is driving the need for companies to find ways to optimize opportunities in their supply chains, and one way they are doing so is through LCL services.  

JAS is uniquely positioned to handle these and other ongoing marketplace stressors. Our LCL services are designed to provide the flexibility need in today’s environment helping customers keep their supply chains moving, while offering cost savings when compared to airfreight.  

“Customers taking advantage of our LCL services to Charleston benefit from fixed weekly sailing schedules with secure and flexible service from origin to destination.” said Brandon Miller, CHS Station Manager, JAS USA.  

Additional weekly LCL import services to CHS include:

  • LON (London, England)
  • HAM (Hamburg, Germany)
  • NHV (Nhava Sheva, India)
  • MAA (Madras, India)
  • SHA (Shanghai) and TW (Taiwan) via BUS (Busan)
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.

It Will Never Happen to You, But What if it Does?

On November 30, 2020, the ONE APUS container ship encountered severe weather conditions while in route to California. As a result, at least 1,816 containers were lost overboard in one of the largest container losses on record and several more were damaged due to a significant stack collapse.

The World Shipping Council reports that every year an average of 1,382 shipping containers are lost at sea. While JAS and other service providers do everything possible to mitigate risk the situation with ONE APUS is just one of many events highlighting the unpredictable, and uncontrollable, disasters that can damage or destroy cargo while in transit. In these circumstances, cargo insurance can help protect against financial losses. JAS can provide insurance policies for both international and domestic shipments. Our experts can help guide you in finding the best protection fit for you and your needs.

Many shippers believe that the carriers' will cover any losses incurred. While in some cases this is a possibility, it is easier said than done. To recover the loss, you must prove the cause of the loss and that the carrier directly caused the loss. Losses caused by acts of nature frequently have no legal recourse against the carrier. Even when the carrier is proven liable, the maximum recoverable amount is limited to a fraction of the value of the freight. It rarely covers the cargo's full replacement value, or any damages incurred from losses in productivity.

Considering the number of containers displaced/lost, experts are of the view that this incident on the ONE Apus could be the worst ever containership disaster with potential loss and costs running into hundreds of millions."  Shipping and Freight Resource, Dec.5 2020

Beyond a carrier's liability limits, vessel owners can hold shippers liable for losses incurred to goods transported by claiming General Average. This is a maritime law principle whereby all stakeholders in a sea venture (shippers/consignees and shipowner) proportionally share losses resulting from a voluntary sacrifice incurred to save the vessel and cargo otherwise at risk. Suppose General Average is declared, and your cargo is neither damaged nor lost. In such cases, the marine insurer will cover the contributions you are due to pay before your cargo is released to make the onward journey, but this may be subject to an applicable deductible. Uninsured cargo owners must put up a cash bond before their cargo is released.

Through JAS, you can ship your cargo globally with a cost-effective Shipper's Interest insurance coverage, and in most cases, with zero deductible. In the event of a claim, JAS will administer the claim on your behalf, making reimbursement easy and headache-free. We produce the necessary paperwork, present the claim to insurers for efficient processing, organize and coordinate inspection surveys, and take any other steps required for the particular claim at hand. You need not be concerned with a General Average contribution because JAS's Shippers' Interest insurance also protects you and covers this extra cost without delay. JAS can therefore ensure that undamaged cargo is released to you as soon as possible.

JAS Offers Air-Sea Solutions to/from China

​JAS Worldwide, together with their business partner Global Airlift Solutions, has managed another successful and urgent charter operation from the USA to China carrying important medical and Coronavirus outbreak relief goods.

The Boing 747-400 departed on Saturday Feb 21 2020 from the Chicago O' Hare International Airport and arrived at the Shanghai Pudong International Airport on Sunday Feb 23rd at 16:51 local time. The plane carried 100 tons of freight, of which 50% were relief goods such as facial masks and disinfectants.

“JAS is proud to be a able to provide a quick and reliable solution for our customers that want to support their employees and business partners during a difficult time”, said Senior Director for Air Freight for JAS USA,

Dirk Ravensteiner. Capacity is extremely tight and flight cancellations after the outbreak of the Coronavirus have reduced available cargo capacity from and to China by more than 40%. Making shipping solutions more complicated.

JAS Worldwide is now also offering unique Sea/Air solutions to/from China. JAS Worldwide hopes to ensure that this is a suitable and alternative solution for shipments to cities in the Northern & Central part of China like Qingdao, Beijing, Tianjin & Dalian, Shanghai and Ningbo.

For more details about our charter services & Sea/Air solutions, please contact your local JAS Worldwide representative.

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