JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Friday February
13, 2025
Today’s Exchange Rate
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90.6325 |
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/// Sea Cargo News ///
Chemical tanker arrested at Deendayal Port as charter
dispute escalates
The vessel, the 13,000-dwt Oceanic Dream (built 2008), was operating
under a time charter to BainBridge Navigation when the relationship between the
two parties reportedly deteriorated, leading to early termination of the
charter.
BainBridge Navigation, which operates bulk carriers and tankers, has
alleged that the vessel failed to perform satisfactorily during the charter
period. The claims are understood to relate to operational and performance
issues, though specific details have not been disclosed.
Following the termination, BainBridge initiated legal action, resulting
in the arrest of the tanker at Deendayal Port, formerly known as Kandla Port,
on India’s west coast.
Vessel arrest is a common remedy in maritime disputes, allowing
claimants to secure their alleged dues while arbitration or court proceedings
are pursued.
Sources indicated that the tanker remains under arrest pending the
posting of security or further legal orders. The owner of Oceanic Dream has not
publicly commented on the matter.
The incident highlights the growing number of charter-party disputes in
a volatile freight market, where performance clauses, off-hire claims and early
terminations are increasingly being tested through legal action.
MSC signals potential exit from Vizhinjam hub
The threat comes after the Indian government scrapped three general orders that had relaxed cabotage rules — allowing foreign-flagged vessels to carry certain cargo along the Indian coast without a licence.
The Ministry of Ports, Shipping and Waterways reversed these provisions on January 21 as part of a broader effort to prioritise Indian shipping interests, prompting MSC to signal concern about its operations linked to Vizhinjam’s transshipment activities.
Since commencing commercial operations in December 2024, the deep-water
Vizhinjam port has rapidly handled container traffic, with MSC’s ultra-large
ships accounting for a significant share of vessel calls. More than 95 % of the
1.575 million TEUs handled so far were on MSC ships, underlining the carrier’s
critical role in the terminal’s early growth.
Officials said MSC raised the possibility of relocating its
transshipment base if the cabotage relaxation was reversed, arguing that
restricted coastal runs could affect vessel deployment and feeder operations
critical to transshipment activity.
While the government maintains that the regulatory shift aims to
strengthen domestic maritime interests without disrupting trans shipment at
Vizhinjam, the threat from MSC highlights tensions between policy goals
and commercial strategies at a port seen as pivotal to India’s ambition of
reducing reliance on regional hubs such as Colombo and Singapore.
Union Government signs MoU to establish Bharat
Container Shipping Line
The agreement was signed among the Shipping
Corporation of India, Container Corporation of India, Jawaharlal Nehru Port
Authority, V.O. Chidambaranar Port Authority (VOCPA), Chennai Port Authority,
and Sagarmala Finance Corporation Limited (SMFCL), under the aegis of the
Ministry of Ports, Shipping and Waterways.
In addition, a tripartite MoU was inked for
financing the Outer Harbour Project at V.O. Chidambaranar Port with up to Rs
150 billion in joint funding to expand port capacity under the Sagarmala
Programme and PM Gati Shakti Master Plan. This agreement was signed between
VOCPA, Indian Railway Finance Corporation Limited and SMFCL.
International cargo and cruise ships now welcome at
Vizhinjam wharf
The move follows the notification of the wharf as a customs-enabled
facility, allowing it to handle foreign-going vessels, including mid-sized
cargo ships and cruise liners.
Officials said the decision is aimed at improving regional connectivity,
supporting tourism, and easing cargo movement along India’s southwest coast.
With international access now permitted, Vizhinjam is expected to
attract cruise traffic, breakbulk cargo, and project shipments, complementing
the container transshipment operations underway at the adjoining deep-water
port. The wharf is strategically located close to major international shipping
lanes, offering time and cost advantages for vessel calls.
State authorities said the development will help generate local
employment, boost ancillary services such as bunkering and ship services, and
strengthen Kerala’s role in coastal and international maritime
trade. Cruise operators, in particular, are seen as a near-term
opportunity, given Kerala’s growing popularity as a tourism destination.
The opening of the wharf adds momentum to Vizhinjam’s broader
development plan, as policymakers position the port as a multipurpose maritime
hub capable of handling containers, cargo, and passenger vessels, while
gradually reducing India’s reliance on foreign transshipment ports.
Hapag-Lloyd revises port rotation for Bangkok Maersk
Under the revised rotation, the vessel will
call Vado Ligure prior to Genoa.
The MV BANGKOK MAERSK 551W–605E is
now scheduled to arrive in Vado Ligure on 7 February 2026 at 07:00,
followed by an arrival in Genoa on 11 February 2026 at 06:00.
Hapag-Lloyd confirmed that revised booking confirmations reflecting this change will be issued shortly.
China bites back over Panama ports ruling
In a post on its official WeChat channel, the State Council’s Hong Kong and Macau Affairs Office (HKMAO) branded the court’s ruling “legally absurd, logically flawed, and utterly ridiculous.”
The statement was closely followed by an
announcement from Hong Kong-headquartered Hutchison Ports that Panama Ports
Company has launched arbitration proceedings against the Republic of Panama, seeking extensive
damages. PPC said it has continued to manage port operations at Balboa and
Cristobal, but that the Panamanian state had “declared and broadly deployed
steps to take over the operations of PPC”.
PPC said these steps included unexpected site visits and instructions that the private company grant “unrestricted access to physical, commercial, and intellectual property and information, as well as to employees”.
These demands were made as part of a port
transition plan, PPC said, a plan it has not had access to and that is based on
an unpublished court ruling, which has not come into effect.
HKMAO leaned heavily on the history of smooth
operation and co-operation between PPC and Panama state entities since the
concession was signed almost three decades ago, but its strong words for the
authorities in Panama contain clear messages intended to influence the future
of the nation’s ports sector.
“The fact that Panama has now ruled the
contract unconstitutional means that it can similarly rule other concession
agreements approved at any time in the future as unconstitutional. This sends a
signal to international investors that Panama is incapable of providing any
protection for them,” the statement said.
Earlier this week, the Panama Canal Authority
(ACP) launched
the prequalification stage of its tender for two massive projects: the development of
two new container terminals, one each on Panama’s Pacific and Atlantic coasts,
and construction of a 76 km gas pipeline across the country with a marine
terminal at each end.
At a critical time for Panama’s ports and
logistics sector, HKMAO warned that Panama will “pay a heavy price in terms of
politics and economics” should it continue on its current
course.
When President Trump took office in the US last year, Panama
found itself thrust into the centre of a geopolitical tussle between the US
and China. The Trump
administration alleged the Panama Canal was under the “malign influence” of
China, and while it avoids mentioning the US by name, HKMAO draws a clear line
between the court’s decision and geopolitical events.
“It is clear to all that the ruling
reflects the Panamanian authorities' complete subservience and obsequiousness
to hegemony, “ it said.
For its part, PPC said it had made efforts
over the past 12 months to consult with Panamanian authorities to avoid
disputes during what it called a campaign by the Panamanian State targeting PPC
and its concession.
PPC said the year “has been marked by a range
of abrupt actions by the Panamanian State culminating in grave and imminent
further damage to PPC,” while other similar port contracts have not attracted
the same scrutiny.
Maersk posts ocean loss, 1,000 job cuts as container
boom unwinds
The Danish shipping giant also revealed today (5 Feb) it will lay off 1,000 staff this year as cost discipline rises up the corporate agenda of most global liners faced with a deteriorating freight rate environment.
Vincent Clerc, Maersk’s CEO, conceded 2025
had been a year where supply chains and global trade continued to be
reshaped by what he described as “evolving geopolitics”.
Maersk’s ocean division reported an EBIT loss
of $153m, down from $567m in the previous quarter, and massively down on the
$1.6bn recorded in Q4 24. The shipping group also announced a DKK6.3bn
($1bn) share buyback scheme.
Japanese liner Ocean Network Express (ONE) set off alarm bells last week, reporting an operating loss of $84m and net loss of $88m in the fourth quarter of 2025, with CEO Jeremy Nixon conceding his company faces a “challenging operating environment”.
“Freight rates have continued to slip ahead
of the Chinese New Year holidays and the carriers’ ability to stop the rate
slump will continue to be tested in the coming months,” analysts at Linerlytica
suggested earlier this week.
“Container freight is poised for a downcycle
– putting downward pressure on rates and carrier revenue – as an unprecedented
wave of new vessel capacity continues to enter the market,” states a recent
report from container booking platform Freightos.
Drewry’s recently published 2026 Financial
Health Check for liner shipping has warned that the sector is nearing a
“structural reset” as freight rates normalise and pandemic‑era windfalls
evaporate and a massive newbuilding orderbook delivers. Drewry has
urged liner companies to trade the boom mindset for tighter financial and
operational stewardship to navigate a what it sees as an impending tougher,
lower‑margin cycle.
American consultancy AlixPartners has also
called on liners to maintain strict capital discipline this year.
“With freight rates reverting toward pre-Suez
crisis lows and shippers pressuring liners to transition back to the Suez
Canal, carriers must execute aggressively on cost-saving programs while
managing capacity through slow-steaming and vessel idling,” the company
advised, adding: “The carriers’ strong balance sheets provide a crucial buffer,
but capital discipline will be needed to avoid repeating the value-destructive
boom-and-bust cycles of the past.”
Much of this year’s liner fortunes will
depend on how quickly the industry returns en masse to transiting the Suez
Canal.
A large-scale return to shorter sailing
distances via the Suez Canal would effectively free up 6-8% of global container
shipping capacity, according to data from Xeneta, a freight rate
platform. Maersk, for instance, has a wide range in its full-year
2026 group EBIT forecast predicated in no small part on the timing of a return
to the Suez. Maersk is forecasting an EBIT for 2026 ranging from a $1.5bn loss
to a $1bn profit.
“The ranges reflect the expected overcapacity
in the shipping industry and scenarios of a gradual Red Sea reopening in 2026,”
the company explained today.
Finnair
Cargo to insource handling operations at Helsinki Airport
Finnair Cargo will insource the operations of
the Cargo COOL terminal at Helsinki Airport as part of efforts to improve
end-to-end processes. The terminal is currently operated by Swissport
Finland, but Finnair Cargo said this partnership would be terminated at the end
of the year.
Gabriela Hiitola, senior vice president of
Finnair Cargo, said: “This change is based on continuous evaluation of our
operations, and the aim is to improve Finnair Cargo’s end-to-end processes,
ways of working and efficiency, as well as to enable growth.”
All Swissport Finland staff working at the
terminal will transfer over to Finnair Cargo on 1 January 2027. According to
the current estimate, the transfer of business will affect approximately 150
Swissport Finland employees who work for Finnair Cargo.
Following the transfer of business, they will
join Finnair as employees, retaining their existing employment status. “We warmly welcome the transferring employees
to Finnair and look forward to continuing the excellent Cargo COOL operations
as one team,” said Hiitola.
The warehouse and transport operations of
Finnair Cargo were outsourced in 2009, and Swissport Finland has been the
contractor for those operations since 2019.
Finnair Cargo currently employs approximately
110 air cargo professionals, so the transfer of business will more than double
the number of Finnair Cargo’s employees. Finnair Cargo opened its COOL terminal
at Helsinki Airport in 2018.
AfA
welcomes US-India trade deal and tariff reductions
The Airforwarders Association (AfA) has
welcomed the trade deal between the US and India, describing the reduction in
tariffs as a positive step for global trade and supply chain stability.
The AfA said lower tariffs will support trade
flows between two of the world’s largest economies, reduce costs for businesses
and consumers, and create more predictable conditions for forwarders, shippers,
and airlines.
“Any move that lowers tariffs and reduces
friction is good news for trade, jobs, and helping to ease cost of living
pressures,” said Brandon Fried, executive director, AfA.
The US and India have deep and growing commercial ties, with air cargo playing a critical role in moving high-value, time-sensitive goods between the two markets.
The AfA also renewed its call for a more
stable and predictable policy environment, warning that shifting tariffs have
made it difficult for forwarders and their customers to plan, invest, and price
services with confidence.
“Forwarders can adapt to change, but constant
uncertainty helps no one, and consistent, transparent trade policy is essential
for maintaining resilient supply chains,” added Fried.
The Association said it will continue to
engage with policymakers to advocate for trade policies that support growth,
competitiveness, and long-term planning.
Tariffs dominated discussions about global
supply chains throughout last year. In the fourth quarter, US airfreight
forwarders expressed concern that a proposed new tariff on imports from Canada
could drive up supply chain costs.
At the beginning of this month, Canada and
the US agreed to a 30-day pause on additional tariffs.
WCS
to include Lithium Battery Forum for first time
IATA’s 2026 World Cargo Symposium (WCS) will
include a Lithium Battery Forum for the first time. The Lithium Battery Forum
will provide vital insights on lithium battery safety as the air cargo industry
faces intense scrutiny over the handling and transportation of lithium
batteries.
Delegates at WCS will also be able to learn
more LAR Verify, IATA’s automated compliance solution for live animal
shipments. The 2026 WCS, held in Lima from 10-12 March, has the theme
‘Advancing Air Cargo in a Dynamic World’.
The event will take stock of changing global
trade conditions as it examines regulatory priorities, developments in special
cargo, and progress on digitalisation as part of its specialist cargo,
regulations and digitalisation conference themes.
In addition to its main conference streams,
WCS will feature three spotlight sessions exploring practical pathways for the
supply chain to improve sustainability practices, accelerate the adoption of
new technologies and processes, and enhance operational efficiency and
resilience.
“Tariffs and geopolitical uncertainty have
reshaped global trade and supply chains,” said Willie Walsh, IATA’s Director
General.
“The 3.4% growth pattern in air cargo demand
in 2025 was strongly influenced by these developments and we can expect more of
the same for 2026.
“This year’s WCS will focus on further
strengthening air cargo’s ability to respond quickly and effectively as trade
lanes shift and the value of speed and reliability across the supply chain
grows.”
Andres Bianchi, chief executive, LATAM Cargo,
said: “Air cargo plays a vital role in connecting South America to global
markets and supporting the region’s trade and economic development. “Hosting
the World Cargo Symposium in South America for the first time is a recognition
of the region’s growing importance in global air cargo.
“LATAM Cargo is proud to support a forum that
brings the industry together to advance regulatory priorities, digitalization,
and the evolving demands of special cargo in a dynamic global environment.
“We look forward to connecting with our
partners and stakeholders in Lima to drive meaningful progress across the
industry.”
The WCS programme will be complemented by a
series of workshops and recognition ceremonies including:
·
The
Future Air Cargo Executives Summit (FACES), which looks at building the next
generation of talent.
·
A
focus session on the benefits of competency-based training through IATA’s
Competency-Based Training and Assessment Center (CBTA Center) and how it
helps to improve workplace safety and performance.
·
A
practical session on ONE Record – covering the technical foundations,
airline use-case implementation, and a live system demonstration from Lufthansa
Cargo, and CHAMP.
·
The E-Commerce
Forum, which will identify how more visibility between e-retailers and cargo
operators would improve efficiency.
·
The ULD
Forum, which will focus on ULD Design, opportunities for AI, and how ULDs can
collect and report sustainability-related data.
Fruit
Logistica tabled new priorities
From 04-06FEB26, Berlin was the epicenter for
representatives of the global fresh produce industry. It was a colorful event,
with halls full of participants attending interesting presentations where a
multitude of innovative ideas from experts, companies and business associations
were unveiled. Carriers such as Condor Cargo or Turkish Airlines Cargo, the
world’s major shipping lines, forwarding agents and hundreds of fruit producers
or traders showed their face to the customer at stands or during panels. In a
nutshell: Berlin was worth the admittance fee. It provided new and valuable
inspiration for the industry.
2,600 exhibitors from 90 countries presented
their products or showcased business ideas and innovations at the Berlin-held
trade fair. In addition to the suppliers, organizer Messe Berlin welcomed more
than 67,000 visitors from 151 countries. With all due journalistic objectivity,
it was a trade show of superlatives.
The products were visible and could be
experienced firsthand by anyone interested, and exhibitor staff were always
present at stands to answer questions raised by attendees. Fruit Logistica 2026
offered ample food for thought for industry or the broad public in
presentations, lectures, and discussion forums – on topics such as improved
quality control, greener supply chains, and intelligent packaging and
technological solutions, to name just a few highlights of the extensive
program.
Climate change, rising production costs,
volatile markets and shifting consumer behaviour make face-to-face exchange
more important than ever. “Especially in challenging times, the
industry needs places where it can look ahead together,” emphasized
David Ruetz, “FRUIT LOGISTICA provides exactly that framework.”
The official thus sent out an optimistic
signal right from the start.
AI dominated the agenda
For the very first time and in contrast to last year’s Fruit Logistica,
artificial intelligence played a prominent role. Whether in automation,
production, transport solutions, or predictive planning, AI has emerged at this
year’s fair as a true game changer, emphasized David Ruetz, SVP Messe Berlin
GmbH, in his welcoming address.
AI and automation are reconfiguring global
supply chains, making them faster, more connected and more resilient. Practical
examples from production, logistics and trade illustrate that technological
innovation is already part of everyday operations and is increasingly
influencing strategic decisions.
Fresh perspectives were also provided by
StartupWorld. Young companies from various countries presented practical
solutions to real-world challenges, ranging from automated quality control and
disease tracking to robotics and new packaging materials. In pitch sessions,
innovative ideas meet decision-makers from retail, production and logistics
directly.
Should the fresh food industry refrain from
air transport?
A high-level panel discussed how the fresh produce trade can establish
sustainable supply chains by avoiding flying fresh fruit halfway around the
world for climate protection reasons? “Sustainability is no longer a
buzzword, but a reality,” said Dorra Zairi, Expert Sourcing &
Markets at Import Promotion Desk.
Agriculture in particular is feeling the
harsh consequences of the overexploitation of the planet, explained Simon
Derrick, Head of Sustainability at Blue Skies Holdings and co-founder of the
Fairmiles initiative: “Climate change is here, and it is already
determining how and where food can be produced.” Biodiversity is
declining and the depletion of resources is accelerating. And there is
something else to note: “For decades, poverty in the world has been
declining, but now it is rising again, and that shows that sustainability as we
have approached it so far is not working for everyone in this world.”
Sweden leads the way in climate protection
ICA Sverige, Sweden’s largest retail chain, decided a few years ago to stop
using air freight. Swedish consumers care deeply about sustainability and
climate protection, explained ICA Business Area Director Maria Wieloch, and air
freight is part of the emissions problem.
For the ICA chain, this meant that it could
no longer offer some fresh products with a short shelf life. The company
weighed up the options and prioritized its sustainability mission over some of
the products in its range, but the question remains: “This may be fair
for the planet, but is it also fair for people?”:
No, exclaimed Jeremy Knops, Délégué Général
at COLEAD, a network for sustainable and inclusive agriculture and partner
organization of Fairmiles. The problem is he reasoned that such sustainability
initiatives by industrialized countries often deprive producers in poorer
countries and communities of their livelihoods.
These are the people who are already
suffering the most from climate change – even though they are the least
responsible for global warming and pollution. If these producers were cut off
from supply chains, it would mean the loss of their livelihoods – money for
food, healthcare and their children’s education. This must be weighed against
the actual climate impact of transporting fresh fruit by aircraft. “Yes,
aviation is growing, but fresh fruit transport is not the driver here,” Jeremy
summarized.
“We need more research to understand the
consequences of our sustainability decisions,” warned Simon
Derrick. “We must ensure that any measures we take in the name of
sustainability do not disproportionately and unfairly harm the most vulnerable
people or communities.”
Fairmiles and COLEAD have therefore
established five “just transition” principles to ensure that environmental
sustainability does not destroy families’ livelihoods: business fundamentals,
impact on people, proportionality, responsible data collection and fairness in
change.
Fruit
Logistica 2026 cemented its role as prime trade show of fresh produce
For anyone working in the fresh produce
industry, attending last week’s three-day Fruit Logistica event was an absolute
must. Walking through the halls, a bubble of different languages could be
heard, mainly Spanish, German, English, Italian, Mandarin, French, and Dutch,
complemented by a variety of African languages and idioms.
An initial evaluation by organizer Messe
Berlin shows a high level of satisfaction: 93.8% of the participants surveyed
had anoverall positive impression of the trade show. 86.3% of the 2,600
exhibitors rate their attendance as a positive commercial success; and 87.7% of
the exhibitors will run stands again at Fruit Logistica come 2027.
To obtain more detailed information about
exhibitors’ motives to attend the Berlin-held show we spoke with managers
representing different sectors: fruit trade, air freight, and ocean freight.
Here are their inputs:
Ignacio Caballero, Director Marketing, Frutas
de Chile
Our organization represents 90% of fresh fruit exports from Chile to the world.
Of our 200 members, representatives from 60
fresh produce companies came to Berlin to showcase their products to visitors
and industry professionals at a joint exhibition stand.
Combined, our member companies generate
annual turnover of USD 8.5 billion in this product segment. This makes our
alliance the second-largest exporter in Chile in terms of value. Speaking about
markets, the Fareast ranks first with just under 50% in terms of value,
followed by the USA with around 25%, Latin America (15%) and the EU (10%). For
the months and even years ahead, we see growth potential, particularly in
transcontinental trade of fresh produce with the EU.
Most of our goods (80%) are transported by
reefer sea freight containers, air freight accounts for 10% as do road services
to neighboring Latin American countries such as Brazil.
As far as the current year is concerned, we
expect a further increase in exports, at least for some fresh products,
although cherries suffered a decline last year. However, in agribusiness, which
is very diverse, it is impossible to make precise forecasts. This is because
weather conditions can be very favorable one year and rather critical the next.
In some cases, trade agreements or tariffs also play a supportive or
restraining role. These external factors are beyond our control.
Thilo Schäfer, Director Cargo, Condor
Flugdienst GmbH
Since I became responsible for the cargo business at Condor in NOV2023, we are
running a stand at the Fruit Logistica trade fair every year. The Berlin-held
show is an extremely important event for us, as 60% of all import shipments we
fly in the lower decks of our passenger aircraft to Germany are perishables.
This makes us the second-largest air freight carrier of these special time and
temperature critical items on international routes to Germany. Given the market
importance of these goods, we really wonder why some of our major competitors
who had their own stands at Fruit Logistica in the past are not represented at
the current Berlin trade show. But that is their decision.
In order to maintain the quality of this
fresh produce throughout the entire supply chain, we have set up cold storage
facilities at central transit airports like Cancun in the Dominican Republic,
or, as in Frankfurt, we utilize existing facilities such as the Perishable
Center. We also use a special vacuum cooler that extracts heat from shipments.
This allows us to quickly reach the temperature required for the onward
transport of shipments. This is particularly important for the subsequent
transfers of temperature critical berries, asparagus, cherries, salads or
grapes from Frankfurt to other final destinations in Europe, like Amsterdam for
instance. There, we no longer deliver the goods to freight terminals at
Schiphol airport, but hand them over directly to a local wholesaler. This
shortens the transit time from origin to shelf and adds to product integrity.
Another important factor worth mentioning is
the fact that we meet many clients face-to-face at the trade fair, including
many established customers. They remain loyal to us because of the ongoing
quality of our air transport services, they repeatedly told us.
And here comes a major news we just announced
at Berlin’s trade show: In Latin America, we have decided to collaborate with
the Panama-based cargo airline Uniworld. The carrier connects our local hub in
Cancun with a multitude of destinations in Central and South America, such as
Quito, Lima, Bogota, San Jose de Costa Rica, Caracas, and Havana operating
B737F aircraft. Hence, our regional partner Uniworld closes an important gap in
our global network by offering important feeder services enabling us to widen
our market reach. As a matter of fact, on 03FEB26, a day before Fruit Logistica
was kicked off, Uniworld flew our first joint shipment from Cancun to Panama
City. As it looks, many more will follow. We will intensify this strategy of
collaborating with local partners at important transit stations.
Thorsten Welter, Director Trade Management
Latin America – South Europe, Hapag-Lloyd AG
Attending Berlin’s Fruit Logistica is an absolute must for our shipping
company. The trade fair is a platform for connecting with our global customers
in the fresh produce logistics sector, whether they are producers,
manufacturers, or freight forwarders. They are all gathered here. From this
perspective, Fruit Logistica is the place to be for us.
Not widely known is the fact that Hapag-Lloyd
is the number 5 worldwide in reefer container shipping services, keeping
perishables fresh and cool, from loading to delivery. That is another
reason why trade fairs like this one here in Berlin or their counterparts in
Madrid, Sao Paulo, or Shanghai, each with their own industry-specific focus,
play such an important role for us to let people know.
These are places where contacts are made and
strengthened, which then ideally lead to concrete business deals. In addition,
as here in Berlin, innovations in packaging, project ideas from start-ups,
application models for artificial intelligence, and new business concepts are
presented exclusively to a specialist and wider audience, which makes this fair
very attractive.
What most visitors don’t see is the fact that
attending trade shows requires a great deal of organizational planning by the
exhibitors. Customer meetings must be arranged and appointments coordinated.
FRUIT Attraction in Madrid, which always takes place at the end of September
or, as this year, from October 6 to 8, is a fixed date in Hapag-Lloyd’s
corporate calendar.
Alongside Berlin’s FRUIT Logistica, it is the
international epicenter for operators, retailers, and traders in the fruit and
vegetable sectors. It is therefore of enormous strategic importance to us. So
see you in Madrid next time.
“Net
Zero Logistics” – easier said than done
ESG is now a regulatory obligation with
legal, financial, and operational consequences. Forwarders are being pushed to
prove environmental, social, and governance compliance across global supply
chains while operating in a market that remains cost-driven.
This gap between expectation and reality is
where “net zero logistics” starts to break down.
ESG has become a compliance regime
Modern ESG requirements are no longer abstract. They demand evidence. Companies
risk high penalties and customer backlash when they take shortcuts. ESG
regulations for supply chain management have shifted from voluntary guidelines
to mandatory, legally binding requirements, focusing on human rights and
environmental due diligence.
In Europe, this shift is being enforced
through CSRD (Corporate Sustainability Reporting Directive) and the CSDDD
(Corporate Sustainability Due Diligence Directive). National regimes such as
Germany’s LkSG (The Act on Corporate Due Diligence Obligations in Supply
Chains) and France’s Corporate Duty of Vigilance law extend these obligations
into supply chain oversight, including logistics service providers.
Supply chain demands focus on:
·
Environmental
(E): Rigorous tracking of carbon emissions, reducing resource waste, minimizing
deforestation impact, and adopting circular economy practices
·
Social
(S): Ensuring compliance with labor laws to prevent child and forced labor,
monitoring health and safety records, and promoting fair treatment of workers
throughout the value chain
·
Governance
(G): Increasing transparency through supplier audits, risk assessments, and
robust data reporting, particularly regarding third-party vendors and raw
material sourcing
ESG demands are outpacing operational reality
In many industries, regulatory frameworks are tightening, making emissions
reporting non-negotiable for forwarders. Data accuracy expectations are
tightening, and penalties for misreporting are increasing. Companies are well
aware of the cost of non-compliance across their supply chains.
However, data collection remains fragmented.
Forwarders often rely on manual processes and inconsistent inputs from other
parts of the supply chain, resulting in uneven data quality and inconsistent
calculation methodologies.
For air cargo specifically, Scope 3 emissions
(all indirect greenhouse gases generated in a company’s value chain) reporting
remains structurally dependent on airline-provided fuel and load factor data,
which forwarders do not control. Sustainability becomes a compliance risk, not
a competitive advantage.
Countries resisting or delaying net zero in
practice
Forwarders operating globally face additional regulatory and cost pressures.
Rather than outright rejection, several major economies are de-prioritizing net
zero in execution. Some key examples by behavior:
·
China. While Climate Action
Tracker considers the overall 2060 target a positive commitment, it rates
China’s interim 2030 Nationally Determined Contribution (NDC) as “highly
insufficient” to meet 1.5°C Paris Agreement limits. On 08NOV2025, the State
Council of the People’s Republic of China released a white paper titled “Carbon
Peaking and Carbon Neutrality China’s Plans and Solutions” mapping out and
coordinating key actions to ensure the safe reduction of carbon emissions. The
document addresses green and low-carbon transport; however, it’s too recent to
assess its impact.
·
India. Prime Minister Narendra Modi announced the 2070 target
at the COP26 climate summit in Glasgow in November 2021. While 2070 is the
official target for net-zero, studies suggest that accelerating the transition
in sectors like transport and power could achieve this goal earlier. The
Climate Action Tracker gives an overall rating of highly insufficient,
specifically noting that the outlines for action areas in transport don’t
provide sufficiently clear policy guidance.
·
The Russian Federation. The country approved its “Strategy
of socio-economic development of the Russian Federation with low greenhouse gas
emissions by 2050” in October 2021 and submitted it to the UNFCCC (United
Nations Framework Convention on Climate Change) in September 2022. It later
submitted an action plan designed to meet the 2050 target. While the action
plan is detailed through 2030, it does not provide quantified emissions
reduction targets for economic sectors or subsectors out to 2050 which could
orient long-term planning across ministerial agencies.
·
USA: The United States formally submitted net-zero targets
to the UNFCCC in 2021 and updated them in 2024. Implementation, however,
remains fragmented. This limits the consistency and enforceability of net-zero
commitments across the logistics and aviation sectors.
These countries are not rejecting climate
action rhetorically—but net zero is secondary to growth and stability.
South Korea shows what enforcement looks like
South Korea provides a clear example of how governments are forcing momentum.
In September 2025, the Ministry of Land, Infrastructure and Transport (MOLIT)
and the Ministry of Trade, Industry and Energy (MOTIE) announced a Sustainable
Aviation Fuel Blending Mandate Roadmap and launched the SAF Alliance.
The key elements include a mandatory SAF
blending of 1% from 2026, increasing to 3–5% after 2030.
SAF and the cost problem the industry avoids
Sources include the International Council of Clean Transportation (ICCT) and
IATA industry reporting
The central flaw in many net-zero narratives
is cost denial. A clear example is SAF (Sustainable Aviation Fuel), the
flagship solution for aviation decarbonization – and its biggest constraint.
·
SAF
costs two to five times more than conventional jet fuel
·
In
Europe, mandate-driven compliance has pushed airline costs to more than four
times traditional fuel prices
·
Under
ReFuelEU Aviation, airlines may pay up to five times the price of conventional
fuel, often without guaranteed supply or consistent certification
Availability is negligible:
·
SAF
usage in 2025 was expected to represent between 0.6% to 0.7% of total global
jet fuel consumption
·
In
2025, SAF output was expected to reach approximately 1.9 million tons (nearly
double the ~1 Mt produced in 2024). In 2026, production growth is projected to
slow, reaching around 2.4 Mt
Estimated 2050 demand exceeds 449 billion
liters.
IATA considers that airlines faced a $2.9
billion premium for available SAF supply in 2025 alone. In air cargo, these
premiums are passed through to shippers via surcharges or SAF contribution
programs. Forwarders do not absorb these premiums. Either shippers pay—or
sustainability commitments collapse at booking.
Other alternatives offer limited relief as
green methanol and biofuels remain scarce and electric fleets work primarily
for short-haul and urban transport.
The reality is blunt: most customers want
greener transport only if it does not cost more. That position does not align
with today’s fuel economics or infrastructure constraints.
Green Corridors Help—But They Don’t Fix the
Math
Green Flight Paths in aviation are designed to concentrate SAF use on specific,
high-volume routes. The logic is scale: create predictable demand, justify
investment, and reduce unit costs over time.
These corridors:
·
Focus
on long-haul routes between major hubs
·
Mirror
“green corridor” concepts already seen in shipping
·
Help
de-risk early-stage SAF production
They are necessary—but they do not eliminate
price premiums or supply shortages. SAF commercialization remains in its
infancy.
Emerging corridors include Southeast
Asia–Europe where SAF is becoming a tradable commodity, but only in regions
with supportive policy frameworks.
Net zero promises vs. operational reality
Day-to-day logistics operations do not behave
like sustainability models:
·
Urgent
shipments override emissions targets
·
Route
changes increase fuel burn
·
Network
inefficiencies erase theoretical savings
Net-zero commitments collide daily with
service reliability, transit-time guarantees, and margin pressure. This is not
a planning failure – it is how logistics actually works.
What Forwarders Can Do – and What They Cannot
What is realistic
·
Improve
emissions visibility and reporting discipline
·
Optimize
networks through consolidation and planning
·
Have
transparent, fact-based discussions with customers about trade-offs
What is not
·
Absorbing
green fuel premiums
·
Forcing
carriers to change fuel strategies
·
Delivering
net-zero outcomes at spot-market pricing
Forwarders that survive the ESG transition
will be those that manage expectations and stop overselling what they cannot
control.
Governance is the weakest pillar—and the most
dangerous
Governance remains the least developed ESG
pillar in logistics, even as its risk profile explodes.
Forwarders now control pricing and customer
data, trade and customs documentation, as well as emissions and compliance
records.
Weak governance shows up as poor data
ownership, missing audit trails, and inconsistent reporting across regions.
Under CSRD and national due-diligence regimes, these failures are no longer IT
issues — they are governance breaches.
In many organizations, ESG accountability is
still diffused across departments, with no single executive clearly
responsible. That works in stable environments. It fails under regulatory
pressure.
The real sustainability problem
Sustainability in logistics is now a core requirement, not optional, and the
economics of decarbonization are already affecting carriers and supply chains;
industry reporting shows that fuel inefficiencies and emission pressures are
costing airlines billions and adding complexity and administrative burden
across logistics networks, illustrating that current incentive structures
misalign operational control with accountability.
I hope you have
enjoyed reading the above news letter.
Robert Sands
Joint Managing Director
Jupiter Sea & Air Services Pvt Ltd
Casa Blanca, 3rd Floor
11, Casa Major Road, Egmore
Chennai – 600 008. India.
GST Number : 33AAACJ2686E1ZS.
Tel : + 91 44 2819 0171 / 3734 / 4041
Fax : + 91 44 2819 0735
Mobile : + 91 98407 85202
E-mail : robert.sands@jupiterseaair.co.in
Website : www.jupiterseaair.com 1Branches : Chennai, Bangalore,
Mumbai, Coimbatore, Tirupur and Tuticorin.
Associate Offices : New Delhi, Kolkatta, Cochin &
Hyderabad.
Thanks to : Container News, Indian Seatrade, Cargo Forwarder Global & Air Cargo News.
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