Trends to Watch
- Recommend booking two or more weeks prior to Cargo Ready Date (CRD) to secure space and minimize CRD changes as much as possible. Alternatively, leverage premium products to guarantee equipment and loading for your most time sensitive cargo.
- We previously reported that runway work was being conducted at Beijing Airport, which was incorrect. The maintenance work is happening at Shanghai Pudong Int’l Airport. Estimated impact (per Shanghai Airport): ~10% capacity on PVG-US, and ~25-30% capacity on PVG - EU, and work will be ongoing through June.
- Passenger traffic is beginning to pick up and flight frequencies will continue to increase on Trans-Atlantic routes. The summer schedule of major European and US airlines is already significantly higher from mid-April onwards.
For more details, please visit Flexport’s Ocean Timeliness and Air Timeliness indicator pages.
According to the Flexport’s weekly market freight update report on April 19, 2023, the global maritime sector is responsible for nearly 3% of global greenhouse gas (GHG) emissions according to the International Maritime Organization (IMO), a UN regulatory body that oversees global shipping.
Since the 1950s the primary source of these emissions is heavy fuel oil (HFO), which has been the primary fuel for the large diesel engines and marine boilers that propel commercial vessels. In the maritime sector it is often referred to as residual fuel oil because it is literally what is left over from the refinement of raw petroleum and is just one step above bitumen—which we use to pave roads.
Increased scrutiny, more stringent regulations, and public demand are pushing the maritime sector towards solutions that reduce greenhouse gas emissions. At Flexport.org, we believe replacing fossil HFO and marine diesel oil (MDO) with alternative fuels that result in fewer, or zero, GHG emissions is the most impactful path forward.
Enter sustainable marine biofuels. Biofuels are any number of liquid or gaseous fuels derived from virgin or waste biomass feedstocks—for example plants, algae, or municipal solid waste. The latter option, waste feedstocks, or organic matter that would otherwise be disposed of, typically offer the greatest reduction potential.
Expert Voices
The global maritime sector is responsible for nearly 3% of global greenhouse gas (GHG) emissions according to the International Maritime Organization (IMO), a UN regulatory body that oversees global shipping.
Since the 1950s the primary source of these emissions is heavy fuel oil (HFO), which has been the primary fuel for the large diesel engines and marine boilers that propel commercial vessels. In the maritime sector it is often referred to as residual fuel oil because it is literally what is left over from the refinement of raw petroleum and is just one step above bitumen—which we use to pave roads.
Increased scrutiny, more stringent regulations, and public demand are pushing the maritime sector towards solutions that reduce greenhouse gas emissions. At Flexport.org, we believe replacing fossil HFO and marine diesel oil (MDO) with alternative fuels that result in fewer, or zero, GHG emissions is the most impactful path forward.
Enter sustainable marine biofuels. Biofuels are any number of liquid or gaseous fuels derived from virgin or waste biomass feedstocks—for example plants, algae, or municipal solid waste. The latter option, waste feedstocks, or organic matter that would otherwise be disposed of, typically offer the greatest reduction potential.
Flexport is keen to support the maritime energy transition to new fuels that help reduce GHG emissions. This is why we have partnered with GoodShipping, a decarbonization service that helps cargo owners reduce emissions by switching from fossil to sustainable biofuels. GoodShipping, through its sister company and biofuel supplier GoodFuels, enables the use of low-carbon marine biofuels in ships. This allows vessel owners and operators to reduce their Scope 1 emissions, with Scope 3 emission reduction allocated to the cargo owners who help fund the fuel switch.
GoodFuels produces their biofuels using waste feedstocks, offering emissions reductions upwards of 80% relative to HFO when the fuel is assessed on a full lifecycle basis according to the company. This process is called ‘insetting’ as it directly reduces emissions within the sector from which they originate.
Through our partnership with GoodShipping, our clients can purchase the carbon emissions reductions associated with the production and consumption of marine biofuels, which sends a critical demand signal to create more biofuel to displace HFO. The GHG reductions purchased by shippers ensure that the sustainable marine biofuel is used by a vessel, and while it may not be the specific vessel carrying the reduction-purchaser’s cargo, the net benefit for the climate is the same.
Please get in touch if you would like to learn more about how Flexport or sustainable marine biofuels can contribute to your company’s emission reduction targets. You can also read the full version of this article on the Flexport blog.
Upcoming Webinars:
- North America Platform Demo Weds, May 10 @ 12:00 pm PT / 3:00 pm ET
- North America Freight Market Update Live Thurs, May 11 @ 9:00 am PT / 12:00 pm ET
