NEWS FROM jas wORLDWIDE

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.

Ao entrarmos em 2024, é fundamental que as empresas estejam cientes de dois feriados que podem afetar as operações. Dois grandes eventos, o Ano Novo Chinês e o Carnaval, estão programados para coincidir, afetando as cadeias de suprimentos em todo o mundo.  
 
O Ano Novo Chinês, um feriado tradicional chinês que marca o início de um novo ano no calendário lunar chinês, começa em 10 de fevereiro e é observado em muitos países asiáticos. Durante essa semana, fábricas e empresas fecharão, pois o feriado traz uma semana de folga para os funcionários viajarem e comemorarem o início de um novo ano com suas famílias. No entanto, espera-se que a desaceleração das fábricas ocorra no início ou em meados de janeiro, com a retomada das operações normais no final de fevereiro.  
 
Simultaneamente, o festival de Carnaval estará em pleno andamento, especialmente no Brasil, onde as festividades ocorrerão de 9 a 17 de fevereiro. Assim como no Ano Novo Chinês, as consequências das comemorações podem ser sentidas em todas as cadeias de suprimentos no Brasil e no exterior, pois muitos fabricantes e fornecedores reduzirão as horas de trabalho ou interromperão as atividades, já que os funcionários tirarão folga para comemorar.  
 
Com duas grandes economias, a China e o Brasil, comemorando feriados importantes simultaneamente, é fundamental que as empresas planejem e se preparem adequadamente, pois a sobreposição dessas festividades deverá impactar as cadeias de suprimentos globais.  
 
Para mitigar efetivamente o impacto dessas comemorações em sua cadeia de suprimentos, recomendamos as seguintes medidas proativas:

• Planeje com antecedência: Antecipe o aumento da demanda por serviços de logística e planeje as remessas com bastante antecedência para reduzir possíveis atrasos. Para evitar interrupções desnecessárias e aumentos de preços, é recomendável fazer as reservas com bastante antecedência, de preferência quatro a seis semanas antes do Ano Novo Chinês.  
• Diversifique as rotas e os métodos de remessa: Explore rotas de remessa alternativas para evitar congestionamentos e possíveis interrupções nas rotas tradicionais. Além disso, considere o uso de várias formas de transporte caso um método sofra interrupções durante esse período.  
• Ajuste os cronogramas: Seja flexível com as programações de produção e entrega para acomodar a desaceleração temporária das operações durante os feriados.
• Mantenha-se informado: Monitore regularmente as atualizações e avisos de autoridades relevantes e fontes do setor para se manter informado sobre quaisquer mudanças ou desenvolvimentos que possam afetar as operações.  
  

A ocorrência simultânea do Ano Novo Chinês e do Carnaval este ano ressalta a importância de medidas proativas e de uma abordagem bem coordenada. Ao integrar esses insights à sua estratégia de planejamento, as empresas podem garantir uma transição mais tranquila durante esse período e manter a eficiência operacional. Para obter mais informações, entre em contato com o escritório local ou com o representante da JAS.

JAS Worldwide has been honored with the ZF Supplier Award in the Digitalization category. The award  acknowledges JAS’ commitment to excellence as it implemented a standardized process for digital container ordering, an initiative that has helped streamline operations and enhance efficiency.

As a key player in the logistics sector, JAS Worldwide operates in over 100 countries, with a widespread network of offices and official representatives. The company has emerged as the primary sea freight forwarder for ZF, one of the world's leading technology companies in the automotive industry.

The award is a testament to JAS’ commitment to innovation and its ability to leverage cutting-edge technology to optimize logistics processes. The standardized digital container ordering process implemented by JAS Worldwide has not only garnered industry recognition but has also strengthened the partnership between JAS and ZF.

"We are thrilled to receive the ZF Supplier Award for Digitalization, which underscores our dedication to embracing and driving digital transformation in the logistics landscape," said Jim Ryan, Senior Vice President, Automotive at JAS Worldwide. "Our team has worked diligently to develop and implement a standardized process for digital container ordering, and this recognition from ZF is a validation of our commitment to delivering excellence in every aspect of our services."

David Bang, Chief Commercial Officer of JAS Worldwide, accepted the award on behalf of the JAS team at the ZF Global Supplier Summit. His address highlighted the collaborative efforts and innovative spirit that propelled JAS to this achievement, emphasizing the company's commitment to staying at the forefront of digital advancements in logistics.

JAS looks forward to building on this success and driving innovation in the logistics sector. The company remains dedicated to exceeding client expectations and contributing to the growth and success of its partners.

JAS Chile proudly announces a significant milestone in the 2023 cherry season, having successfully exported more than 500 tons of premium fresh cherries to the Chinese market.

Key to this accomplishment was JAS Chile's strategic approach, built on the pillars of quality, speed, and reliability. The collaboration and trust placed in us by partners Ocho Fuegos and Harvest Time played a pivotal role in achieving this milestone, and we express our gratitude for their support.

Facilitating the seamless transportation of our cherries, JAS Chile engaged in a critical partnership with Qatar Airways Cargo. The utilization of two full Boeing 777 freighters, each loaded with over 120 pallets and 96 tons of cherries, was instrumental in ensuring the swift and secure delivery of the produce to China. This collaboration underscored JAS's commitment to meeting the high standards demanded by the market.

“We are proud of our achievement, and we anticipate new challenges and opportunities in the future,” said Phillip Reid Air Freight Manager for JAS Chile.  

As JAS Chile reflects on the success of the 2023 cherry season, it looks forward to embracing new challenges and opportunities on the horizon. This accomplishment serves as a testament to JAS Chile's dedication to quality service and its commitment to being a reliable partner in the global supply chain.

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. 

[ATLANTA, GA., January 16, 2024] – JAS Worldwide, a global supply chain and logistics company, has announced its partnership with Lune, a leading provider for funding high quality climate projects. This collaboration will enable JAS customers to contribute to climate projects and compensate for difficult-to-abate logistics emissions.

As the transport and logistics industry contributes approx. 11% of global CO₂ emissions, JAS sees that it has an important role to play in tackling the challenge of reducing the industry’s impact. In addition to reducing CO₂ emissions from freight, JAS aims to extend its influence beyond the logistics value chain and enable its customers to take action by contributing to impactful climate projects around the world. However, navigating this commitment with credibility poses a unique challenge, given the carbon credit market's prevalence of projects with questionable impact and limited transparency.

To enable its customers to contribute to climate projects in a credible way, JAS has selected Lune as its partner for carbon offsetting, because of its shared commitment to transparency and positive impact. By leveraging a rigorous vetting process and comprehensive six-point evaluation criteria, Lune curates a list of high quality climate projects, such as reforestation, mangroves restoration, concrete mineralization, or enhanced rock weathering. The initial projects chosen by JAS Worldwide are aligned with the Oxford Offsetting Principles best-in-class portfolio.

JAS customers will receive transparent information about the projects and their impact as well as a dedicated carbon credit certificate for completed purchases. Transparency and accountability are crucial in today’s complex and ambiguous voluntary carbon markets.

“By offering our customers not only biofuel insetting and network optimization solutions, but also offsetting opportunities through our partnership with Lune, we help them achieve their environmental goals while keeping our promise to make a positive impact.” said Andrea Goeman, SVP QHSE & Sustainability at JAS Worldwide.

“Working with JAS Worldwide, we are excited to bring a new level of integrity and clarity to end-to-end sustainable logistics. Our collaboration sets a new standard for how the logistics sector can contribute to a climate positive world,” added Erik Stadigh, Co-founder and CEO at Lune.

Driven by customer demand and incoming regulation, this partnership is a significant step for JAS Worldwide and Lune as they continue to champion sustainable practices in logistics.

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.

About Lune:
Lune is on a mission to make every product and service climate positive by default. Consumers are demanding businesses take climate action. With Lune, companies are delivering by calculating scope 3 emissions and purchasing carbon credits with peace of mind. It provides the only API that combines emission calculations and high quality climate contributions. Lune is trusted by leading companies worldwide such as JAS Worldwide, Visa, Salesforce, and Forto. Learn more at www.lune.co.

JAS Argentina is proud to announce that it has been recognized as a Great Place to Work for the fourth consecutive year. This certification is a testament to JAS Argentina's ongoing commitment to fostering a positive and inclusive workplace culture.

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The Great Place to Work certification is awarded based on employee feedback and an in-depth assessment of workplace policies and practices. JAS Argentina has consistently demonstrated a dedication to creating an environment where employees feel valued, engaged, and motivated.

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"We are thrilled to receive the Great Place to Work® certification for the fourth year in a row. This achievement is a reflection of our ongoing efforts to prioritize the well-being and satisfaction of our employees," said Claudia de los Santos, HR Manager at JAS Argentina. "At JAS, we believe that a positive workplace culture is the foundation for success, and this recognition reinforces our commitment to creating an environment where every team member can thrive."

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JAS Argentina's workplace initiatives include corporate social responsibility initiatives, professional development opportunities, and a focus on work-life balance. It believes that a positive work environment not only enhances employee satisfaction but also contributes to overall business success.

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The Great Place to Work certification is a globally recognized standard for workplace excellence, and JAS Argentina is proud to be among the organizations that consistently meet and exceed these standards. The certification reinforces the company's position as an employer of choice in the logistics and supply chain industry.

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JAS Argentina expresses gratitude to its team members for their continued commitment and contributions to creating a workplace that is both rewarding and enriching. It remains focused on maintaining its high standards and looks forward to building on this success in the years to come.

Current Situation: 

Five weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. Given the situation has again worsened in recent days, various maritime research and consulting firms, as well as one global ocean carrier CEO, have communicated an outlook that carriers resuming Suez Canal transits seem more like months than weeks away until the risks of attacks are eliminated.

• Every day this past week, media reported on attacks being carried out, with both the frequency of the attacks and ‘hit ratios’ increasing.
• US forces attacked 14 locations in Yemen during a nighttime operation earlier this week, targeting the location of missile launchers. US officials acknowledged that airstrikes against Houthi militants in Yemen will not deter the group from attacks, yet it does not mean the military campaign will stop anytime soon.
• Today, Maritime Unions urged TRANSCOM for enhanced communication in the Red Sea, pointing out that the severe attacks represent the biggest threat to commercial shipping in over 50 years. At the same time, they expressed gratitude for the support to date to safeguard ships and crew.

Key Facts & Market Developments: 

Below are some key facts and market developments because of the situation.

• In the first two weeks of 2024, transits around the Cape of Good Hope have increased from 77 to 206. Reflecting an increase of 168%. With a few exceptions, all major containership ocean carriers are participating largely in this routing option. CMA-CGM is amongst those that transit, escorted by French warships.
• The market spot rates featured in directly impacted East-West trades, as per the World Container Index, saw a weekly increase from Asia to North Europe of 12% and into the Med of 21%, respectively. While a smaller increase week over week, it is still significant. Backhaul rates to Asia have climbed 50%.
• Global benchmarking and market intelligence platform Xeneta reported yesterday that some carriers make up for the longer transit time by omitting port calls at the start of round trips. Northern-most ports in Asia are affected by this, as services starting in Tianjin or Dalian, now seem to begin in Shanghai or Ningbo.

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. 

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.

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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.

Current Situation: 

Six weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community continues to reroute, with very few exceptions, their vessels around the Cape of Good Hope. The situation and the future direction of this conflict remain dynamic.

• Since our last update, no attacks were noted until Tuesday this week when two US flag vessels came under attack, which then turned around discontinuing their passage.  
• This was followed by a Liberian flagged bulk carrier, which was attacked on Wednesday.  
• We continue to witness that the frequency of the attack has no pattern.  
• According to media outlets, the Iranian Revolutionary Guard, as well as Hezbollah forces, are on the ground in Yemen, working jointly with the Houthis, directing attacks on shipping in the Red Sea. 
• US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen. 

Key Facts & Market Developments: 

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

• Carrier Hapag Lloyd announced two days ago that, given the ongoing dangerous situation and security concerns, they will divert all vessels until further notice. 
• The 2M alliance announced yesterday that network changes for Asia – Europa and Asia – Transpacific Services are being announced.  
• Maersk Line Limited announced today that transit 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, therefore, may continue to transit on the same vessels.
• On the Asia-Europe trade market rates only increased a marginal 1% this past week. Industry experts have pointed out that the rate difference between destinations in North Europe and the Mediterranean is at almost USD 1500.00 / 40’ container. 
• Backhaul rates to Asia from North Europe should equally be monitored closely as benchmarking platforms report +130% increases in rates compared to pre-crisis levels.  

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.