Table of contents
Topic of the week:
The European Parliament are implementing the EU Climate Law which has set targets to reduce emissions, with the aim of reducing emissions by 55% when comparing 1990 emission levels to 2030. The overarching goal is for the EU to have reached net zero emissions by 2050.
This will be facilitated through a range of legal measure spanning across all industries, one of which being the logistics and transport industry. We are seeing the implementation of more EV and sustainable energy sources particularly in road freight but this plan aims to reduce emissions produced by ships by 2% by 2025 and a further 80% by the year 2050.
Following preliminary agreements, both container and passenger vessels will use power supplied onshore for all electrical facilities when stationed at major EU ports from 2030, with these parameters to be applicable to all EU ports from 2035 as long as they have the means to supply onshore power. There will however, be limitations and exceptions to these rules that will apply if vessels are using their own zero-emission fuel supply, and for short port visits that are less than two hours or emergency dockings due to extenuating circumstances.
In supporting this the new ISO 14083 standard has been published which covers “Greenhouse gases — Quantification and reporting of greenhouse gas emissions arising from transport chain operations”. The publication of this new industry standard comes with the aim of embedding GLEC (Global Logistics Emissions Council) framework principles into one ISO structure that means there is a single methodology for all companies, governments and investors to follow in the future.
Greener fuel alternatives are being explored more and more within the freight and logistics sector and is something that we can all expect to see expand across the industry in the future.
Sea
- Freightos data suggests that Asia to North America rates have declined by 40% from the end of February – seeing similarities to 2019 rates
- Global container spot prices have seen a slight increase since last week moving from $1463 to $1492 according to the Freightos Baltic Index (FBX)
- However, China/East Asia to North Europe spot rates have continued to decline over the past week dropping from $1414 to $1335 says (FBX)
- Overall, rates have stabilised for the first time in 14 months, symbolising a turnaround in the continuing decrease and possibly a return back to full ships and higher rates.
- Liners are seeing their ships filling up again as an increase in demand on Asia to Europe tradelanes has meant carriers need to secure more tonnage.
- Although spot rates have been eroding, Trans-Pacific rates are now sitting similarly to what they were pre-COVID, whilst Europe to US rates are still holding at over double their pre-COVID levels.
Air
- While market prices continue to fluctuate, rates from all airlines have seen a slight increase this week
- Trans-Pacific rates have increased throughout March, however Hong Kong to Europe and Trans-Atlantic spot rates have dropped
- FBX shows that Europe to Asia, Greater China rates have slightly declined from last week at 2.47 US$/kg as has Europe to Northern America at 2.72 US$/kg
- The largest rate increase from last week was for Europe to Africa with a slight increase, now at 3.32 US$/kg
- Beijing Daxing International Airport (PKX) is a new airport in Beijing operating as of now
- There are also new routings from multiple airlines:
- PEK CA new routing - PEK-LGW-LHR
- CSX HU new direct flight - CSX-LHR
- SZX ZH new direct flight - CSX-LHR
That’s all for this weeks update…
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