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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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Breaking ground for a sustainable future: JAS Middle East embarks on a new journey with the groundbreaking ceremony for their state-of-the-art 'Build to Suit' Logistics Hub in Dubai South

JAS Middle East recently broke ground on an innovative 'Build to Suit' Logistics Hub in Dubai South.  

This state-of-the-art facility will boast a unique blend of cutting-edge technology and environmental consciousness, aligning with JAS’s Environmental, Social, and Governance (ESG) goals. Spanning a land plot of 212,160 square feet and a built-up area of 127,300 square feet, the ESG-compliant hub will be designed to tailor to specific logistic needs and prioritize eco-friendly practices. 

In addition to its functional aspects, the property will incorporate other sustainability measures such as the installation of solar panels on its roof—allowing JAS Middle East to achieve ESG credentials. These panels will not only offset monthly utility costs but will help JAS Middle East increase its independence from the national grid (DEWA).  

The office space within the hub, spanning 13,347 square feet over two floors, will offer modern amenities such as meeting rooms, open-plan working areas, and recreational spaces, ensuring a conducive environment for employees and clients. 

“This project represents a significant milestone for JAS Middle East and its esteemed customers,” says Erwin Wittemaier, Area VP for the Middle East, “This strategic investment underscores our commitment to our customers and the UAE market. We look forward to deploying new technology to provide best-in-class logistics solutions.” 

With the exciting groundbreaking of the Dubai Logistics Hub, JAS Middle East not only strengthens its position in the logistics sector but also sets a standard for sustainable infrastructure development in the region. 

JAS welcomes Christian Heinze as Global Head of the Technology Vertical.

JAS Worldwide is excited to welcome Christian Heinze as Global Head of the Technology Vertical, effective April 2, 2024. With this strategic addition to the leadership team, JAS reaffirms its push to expand its presence and expertise in the Technology and Semiconductor sector.  

Christian brings over two decades of success serving in senior operational and commercial roles within the global logistics industry. His deep knowledge of the semiconductor and solar industries has shaped critical supply chain transformations for clients across all modes of global transportation.  

Throughout his career, Christian has been instrumental in developing and implementing innovative commercial strategies that have contributed to significant business growth and fostered customer collaboration. His innate understanding of the industry landscape and proven track record of driving operational excellence make him a valuable asset to JAS’s growing technology vertical.

"Christian’s wealth of experience and passion for innovation aligns perfectly with our mission to deliver exceptional services to our Technology clients. His leadership will play a crucial role in expanding our service portfolio and solidifying JAS's position as a key player in the dynamic and fast-evolving semiconductor industry," Manuele Mazzacurati, EVP, Sales & Marketing, JAS Worldwide, expresses with enthusiasm.  

Christian Heinze's appointment comes at a key time as JAS continues its focus on operational excellence, offering innovative solutions, and adopting a sustainable approach to drive growth and create value for its customers globally.

Blue World Line

Dear Valued Customer, 

Due to the recent collapse of the Francis Scott Key Bridge in Baltimore, we are raising awareness that our services and contracts are affected by this situation.  

Therefore, in conjunction with similar actions taken by ocean carriers, Blue World Line hereby provides this notice, in accordance with the clauses 11 and 12 of its bill of lading, of the necessary re-routing of some vessels currently sailing to and from the Port of Baltimore. 

Cargo currently at the terminals in Baltimore will remain at the port until further notice and imports originally set to call the port of Baltimore have been rerouted to other US East Coast ports.  

JAS Worldwide, as agent for Blue World Line, is taking all necessary steps to preserve its transportation services for our customers and to mitigate the impact of this situation on your shipments. 

Lastly, this disruption will continue to impact our services along the east coast of the United States and drive booking and routing changes on both imports and exports calling the port of Baltimore.  We will continue our best efforts to keep you updated on the status of your shipments and any developments as they happen.  

We appreciate your understanding and cooperation in this difficult situation, and we will keep you updated on any additional developments. Please check back often at www.jas.com for the latest news. 

For any questions and concerns, please contact your local JAS office.  

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