JUPITER SEA & AIR
SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Wednesday June 17,
2026
Today’s
Exchange Rates
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/// Sea Cargo News ///
Indian Chilli Exports
Face Chinese Rejection After Rice Import Hurdles
Indian chilli exports have encountered fresh challenges in the Chinese market after authorities reportedly rejected several chilli consignments, adding to concerns that emerged earlier this year when Indian rice shipments faced import-related difficulties.
The latest development has raised concerns
among exporters and traders who view China as an important destination for a
range of agricultural products. Industry sources indicate that the rejected
chilli cargoes were subjected to regulatory scrutiny, leading to disruptions in
trade flows and uncertainty for exporters.
The move comes at a time when India has been
seeking to expand agricultural exports and strengthen its presence in key
overseas markets.
The rejection follows previous hurdles
involving rice shipments in May, prompting exporters to call for greater
engagement between the two countries compliance requirements and prevent
further disruptions. Trade bodies are closely monitoring the situation and
assessing its potential impact on export volumes and pricing.
India is one of the world’s leading producer
and exporter of chillies, a wide range of markets across Asia, Europe and the
Middle East. Any prolonged restrictions in the Chinese market could prompt
exporters to diversify destinations and explore alternative buyers to maintain
shipment volumes.
Officials and industry stakeholders are
expected to engage with their Chinese counterparts to clarify the reasons
behind the rejection and work towards restoring smooth trade in agricultural
commodities. The outcome will be closely watched by exporters as they navigate
evolving regulatory requirements in international markets.
Sea-Intelligence
: Decoding Gemini’s Mediterranean Surge
Sea-Intelligence analysed East/West container vessel deployment, revealing how Gemini Cooperation is executing a reallocation of their fleet. While headline figures show a broad loss of market share across major East/West trades, an 8 week running average in Figure B1 shows a deliberate network strategy: Gemini is systematically sacrificing capacity market share on the Transpacific and Asia-North Europe (Asia-NEUR) lanes to fund an aggressive offensive on Asia-Mediterranean (Asia-MED).
On the Asia-NEUR lane, Gemini’s market share
fell sharply from 25.7% in mid-May to 22.5% by June 2026. This drop was driven
by a structural fleet downgrade on the AE3/NE3 service. Following a two week
blanking in early June, Gemini resumed the service by swapping out 18,000+ TEU
vessels for smaller 14-15,000 TEU ones. This tactical downsizing trimmed weekly
deployed capacity by roughly -5,500 TEU.
Conversely, Gemini flipped the script on the Asia-MED trade lane, where capacity market share is projected to increase to 29.7% by July 2026, up from a 23.4% baseline. This surge stems from a two-pronged strategy implemented in 2026-Q2: launching a forth loop (AE19/SE4) utilizing 14,000 TEU vessels and structurally upgrading the AE15/SE3 service from a 13,100 TEU average to 18,400 TEU.
In fact, the underlying data reveals a direct
cascading mechanism: the 18,000 TEU vessels pulled from Asia-NEUR were directly
re-routed to execute the Asia-MED upgrade. This injected a net +22,402 TEU
weekly into the MED trade, yielding a dominant 28.1% capacity market share.
Ultimately, Gemini is consolidating their
network to build a dense, high frequency Asia-MED footprint, drawing a stark
operational contrast to Ocean Alliance, which continues to expand capacity
across all major trade lanes uniformly.
U.S. Overtakes Gulf
Producers as India’s Leading Gas Supplier
The United States has emerged as India’s largest supplier of natural gas, overtaking traditional Gulf producers as shifting geopolitical dynamics and supply disruptions reshape global energy trade flows.
The development reflects India’s growing
efforts to diversify its energy import sources and enhance supply security amid
uncertainty in key producing regions. Recent trade data shows a rise in
liquefied natural gas (LNG) shipments from the United States to India,
supported by competitive pricing, flexible contract structures, and ample
export availability.
At the same time, concerns over regional
instability and potential disruptions to energy transportation routes in the
Gulf have prompted Indian buyers to seek alternative supply sources.
The shift marks a significant change in
India’s gas import landscape, which has historically relied heavily on
producers in the Middle East. Increased imports from the US are helping Indian
energy companies secure stable supplies for power generation, industrial use
and city gas distribution networks.
Industry analysts note that the growing role
of U.S.LNG aligns with India’s long-term strategy of broadening its supplier
base and reducing dependence on any single region. The trend also highlights
the increasing importance of trans-continental energy trade links as global
markets adjust to evolving geo-politcal and economic conditions.
As demand for cleaner-burning fuels continues
to grow, India is expected to remain a key destination for LNG imports. The
strengthening energy partnership between India and USA could further support
trade growth and reinforce energy security for one of the world’s fastest
growing major economies.
China Begins
Construction of World’s Largest LNG Carrier
China’s Hudong-Zhonghua Shipbuilding has commenced construction of the world’s largest liquefied natural gas (LNG) carrier, marking a significant milestone in the country’s drive to strengthen its position in advanced shipbuilding.
The new “QC-Max” vessel will feature a record
cargo capacity of 271,000 cubic metres, making it the largest LNG carrier ever
built.
Measuring 344 metres in length, the vessel
will be equipped with China’s domestically developed NO96 Super+ membrane
containment system, designed to safely store and transport LNG at extremely low
temperatures.
The carrier is expected to transport 57 per
cent more cargo than the conventional 174,000-cubic-metre LNG vessels that
currently dominate the global fleet.
The ship will also incorporate a dual-fuel
propulsion system and an optimized hull design aimed at reducing fuel
consumption and lowering carbon emissions. Built to comply with IMO Tier-III
environmental regulations, the vessel will be capable of calling at most major
LNG terminals worldwide.
The project highlights China’s growing
capabilities in the highly specialized LNG carrier sector, which has
historically been dominated by a handful of international shipbuilders due to
the complex engineering requirements involved in transporting super-cooled
natural gas.
According to industry reports, China has now
secured more than 30% of the global LNG carrier market. Hudong-Zhonghua
currently leads the sector with an orderbook of 60 LNG carriers, with its
production slots fully booked through 2030.
The ultra-large LNG carrier is scheduled for
delivery in 2028 and is expected to enhance LNG transportation efficiency while
supporting the stability of global energy supply chains amid ongoing
geopolitical uncertainties.
Maersk Deploys
Electric Heavy-Duty Container Trucks at Shanghai Logistics Hub
Global shipping and logistics company Maersk has deployed its first batch of electric heavy-duty container trucks at its Lin-gang Flagship Logistics Centre in Shanghai, marking a significant step in its efforts to decarbonize inland logistics operations.
The trucks will operate between the logistics
centre and Shanghai Yangshan Port, supporting both import and export cargo
movements. The initiative is aimed at reducing greenhouse gas emissions while
improving the efficiency of cargo transportation.
Officially launched in November 2025, the
Lin-gang Flagship Logistics Centre has enhanced Maersk’s ability to manage
domestic and international cargo flows from one of China’s major trade and
logistics hubs.
The deployment of electric trucks further
strengthens the integration of warehousing, inland transportation and ocean
freight services within the company’s logistics network.
Maersk said the move underscores its
commitment to sustainable logistics solutions and the development of
lower-emission supply chain operations.
Somali Piracy Resurges
in 2026 as Seven Hijackings Raise Maritime Security Concerns
A resurgence of Somali piracy is raising fresh concerns across the global shipping industry, with seven hijackings recorded since the beginning of 2026 involving cargo dhows, fishing vessels, and tankers operating in the western Indian Ocean.
According to discussions between maritime
industry representatives and EU Naval Forces, three hijacked vessels and their
crews remain anchored off the Somali coast as of early June, with pirates
reportedly holding them for ransom.
The recent spike in attacks comes amid a
period of heightened military activity in the Red Sea, Gulf of Aden, and Somali
Basin linked to regional conflicts involving Iran.
Security experts note that naval assets in
the region have been stretched, reducing the deterrent presence that had helped
suppress piracy over the past decade.
Recent incidents have followed familiar
Somali piracy tactics, with hijacked dhows being used as “motherships” to
extend the operational reach of pirate groups. Attacks have been reported as
far as 250 nautical miles from the Somali coastline, as well as in nearshore
waters.
Maritime security analysts believe the
increase in piracy activity suggests that criminal networks in Somalia have
rebuilt their operational infrastructure and strengthened relationships with
local communities and clan networks, enabling them to sustain hostage-for-ransom
operations.
Reports have also indicated possible links
between pirate groups, al-Shabaab militants, and Yemen’s Houthi movement,
although the extent of any co-operation remains unclear.
The latest incidents revive memories of the
piracy crisis that plagued international shipping between the mid-2000s and
early 2010s, when hundreds of seafarers were taken hostage and shipowners paid
millions of dollars in ransom to secure vessel releases.
Industry stakeholders are urging ship
operators to maintain strict adherence to Best Management Practices for
Maritime Security 9BMP MS) and regularly consult Maritime Industry Security
Threat Overviews (MISTO) to mitigate piracy risks.
Military authorities continue to assess
piracy as a credible threat along the Somali coast and throughout the Somali
Basin. However, the strengthening southwest monsoon season from June through
August is expected to temporarily hinder offshore piracy operations by creating
rough sea conditions. Despite this seasonal disruption, coastal waters remain
suitable for small-boat activity, leaving a persistent risk of opportunistic
attacks against merchant vessels.
The renewed threat underscores the need for
continued vigilance by shipowners, operators and crews navigating one of the
world’s most strategically important maritime trade corridors.
COSCO Introduces
Emergency Bunker Surcharge on U.S.-Bound Shipments
COSCO Shipping has announced the implementation of an emergency bunker surcharge for cargo destined for the United States, citing rising fuel costs and ongoing volatility in global energy markets.
The measure is intended to help offset
increased operating expenses faced by carriers as shipping lines navigate a
challenging cost environment.
The surcharge will apply to U.S.-bound
shipments across designated trade routes and is expected to affect a wide range
of cargo moving through COSCO’s container shipping network.
The carrier indicated that the additional
charge reflects recent fluctuations in bunker fuel prices, which have been
influenced by geopolitical tensions and uncertainty in key energy-producing
regions.
Shipping lines frequently adjust bunker
related fees to recover fuel expenses when market conditions lead to sharp cost
increases. The latest surcharge announcement highlights the impact that energy
market developments can have on maritime transportation costs and supply chain
planning.
For shippers and logistics providers, the new
fee may contribute to higher freight expenses, particularly for businesses
dependent on trans-Pacific and other U.S. focused trade lanes. Industry
participants are closely monitoring carrier pricing strategies as they assess
the broader implications for shipping costs and trade flows.
The move comes amid heightened concerns over
fuel availability and pricing following disruptions in global energy markets.
As carriers seek to manage operational costs, additional surcharge adjustments
could remain a feature of the shipping industry if energy price volatility
persists in the coming months.
/// Air Cargo News ///
Avianca Cargo opens Direct Cargo Corridor
to Bolivia
Avianca Cargo has launched a new dedicated freighter route to Bolivia, strengthening air cargo connectivity within South America and expanding its regional logistics network.
The
new service is designed to provide shippers with faster and more reliable
transportation options while supporting growing trade flows to and from the
Bolivian market. The route will enhance the movement of a wide range of cargo,
including perishables, pharmaceuticals, industrial products, and general
freight.
By
introducing direct freighter operations, Avianca Cargo aims to reduce transit
times, improve capacity availability, and offer greater flexibility to
customers across the region. Bolivia's strategic location and growing
economic activity have increased demand for efficient air freight services,
particularly for time-sensitive shipments.
The
new corridor is expected to strengthen supply chain links between Bolivia and
key commercial centres in Latin America, facilitating trade and supporting
exporters seeking broader market access.
The
launch forms part of Avianca Cargo’s broader expansion focused on increasing
network coverage and responding to evolving customer requirements. The carrier
has continued to invest in route development and operational capabilities to
meet rising demand for air cargo services across the Americas.
Industry
stakeholders view the new service as a positive development for regional
logistics, enhancing connectivity and providing businesses with additional
transportation options. The direct cargo corridor is expected to support trade
growth, improve supply chain efficiency and reinforce Avianca Cargo’s position
as a leading air freight operator in Latin America.
ILA Berlin was worth attending
ILA
2026 was a record-breaking event that opened a variety of new chapters in
aviation thanks to the broad range of exhibitors and the presentation of
innovative products. A total of 750 exhibitors from 37 countries showcased
their products and provided interested parties with detailed information about
their range of services.
The
focus was primarily on technological innovations. Unfortunately, cargo airlines
and forwarding agents were largely absent. In contrast, drone manufacturers
were given their own hall area for the first time, which was highly frequented.
And
new developments in the space and defense sectors were also much more
prominently featured at this year’s trade show than in the past. The program
was rounded off by various air shows, during which Airbus’ newest fleet member,
the A350-1000, was presented to a wider public for the first time, both on the
ground and in the air.
“ILA
of new beginnings”
In addition, many participants used the trade show to make business contacts,
network, agree on strategic partnerships, or initiate joint projects. It was
not surprising that the German Aerospace Industries Association (BDLI) was very
satisfied with this year’s ILA, as Marie-Christine von Hahn, CEO of BDLI,
confirmed: “Our members report a level of engagement and negotiation
that we haven’t seen in a long time – it’s broader, more concrete, and more
binding. Contracts, Memorandums of Understanding (MoUs), and product launches
demonstrate that the aerospace industry is being redefined as a key sector for
competitiveness, security, and technological sovereignty. Trade visitor days
have shown that this record-breaking ILA is also an ‘ILA of new beginnings’,” she
said. Beside various jetliners, helicopters and military aircraft, what really
caught the eye was the wide range of flying wing solutions currently being
developed by several companies.
Electrification
of aviation
Take developer Getwing_One, for example, which presented the concept of its
Blended Wing Body. The aircraft, powered by two electric fan motors, is
designed for a range of 300 km and reaches a cruising speed of 185 km/h. The
Getwing_One represents another step toward the electrification of short and
medium-haul air travel.
Another
eyecatcher was Fixar 025, an advanced fully electric VTOL with a unique
airframe design, suitable for complex missions. Its range is 300km and it
offers a payload of 10 kg. It enables a variety of use cases such as mapping,
scanning, multispectral imaging, aerial photography or delivery of small and
urgent packages like medical items. Fixar 025 costs between USD 150-350K,
depending on customer configuration, while manned aircraft / military UAVs cost
USD 1-5 million each, in comparison.
Hindrances
and skeptics
The fact that refueling aircraft with SAF is still not going smoothly at some
airports is illustrated by a demonstration flight of KLM (Flight 1755) from HAM
to AMS shortly before ILA was kicked off. HAM’s local service provider, AFS –
Aviation Fuel Services GmbH, kept raising concerns and piled up bureaucratic
hurdles, with the result that KLM decided to refuel with enough SAF in
Amsterdam to cover the return flight as well. This went off without a hitch.
No
one at AFS in Hamburg was available by phone to answer questions. The current
case was tabled by Mark Siegel at the ILA, an executive of Ineratec, a spin-off
from the Karlsruhe Institute of Technology (KIT). The company converts
greenhouse gases and renewable electricity into sustainable fuels (e-fuels),
including chemical products. It is a contribution to the decarbonization of
sectors that are difficult to electrify, such as aviation and shipping.
Strong
demand for VÆRIDION products
Aircraft developer, VÆRIDION, also announced significant progress for its
Microliner electric regional aircraft at ILA Berlin: The company secured orders
for more than 100 new aircraft in cargo and passenger configurations in Europe.
These
commitments come from leading business and regional operators, a lessor, and an
electric flight training provider across Denmark, Germany, Ireland, the Czech
Republic, and the Netherlands, reinforcing market demand for VÆRIDION’s fully
electric Microliner and further validating the business case for electric
regional flight.
In
addition, VÆRIDION agreed to its first commercial collaboration with General
Atomics Aeronautical Systems for its airborne battery system and successfully
completed the aircraft-level Preliminary Design Review, a major technical
milestone that validates the aircraft.
Attracting
young talent
Also, the States of Brandenburg and Saxony signed a strategic cooperation
agreement. The Memorandum of Cooperation (MoC) between the two German states
and the European Union’s Aviation Research and Innovation Program, aims to
strengthen collaboration on the development of disruptive technologies for more
efficient, competitive and cleaner aviation in Europe.
Finally,
ILA offered a Talent Hub on the exhibition ground for young potential and
junior staff to encourage them to consider careers in aviation. Pilots,
engineers, air traffic controllers and other experts were there to provide
information and answer questions.
SAF was a key topic at the ILA
Sustainable
Aviation Fuel (SAF) featured prominently in the various presentations and
panels at the Berlin-held aerospace event. It was also a core topic from day
one to day five at Berlin-Brandenburg Aerospace Alliance’s stand (BBAA) – the
trade association for the aerospace industry in the capital region.
“Will
the SAF quota of 6% mandated by the EU for 2030 be met by the aviation
industry?” was the starting point for debates. This corresponds to a required
volume of approximately 3.1 million tons of SAF. Of this, the eSAF share is
mandated to be 1.6% which translates into 620,000 tons of eSAF, produced from
renewable electricity and CO2.
In the run-up to the ILA, and to spark
discussion at the BBAA, CargoForwarder Global asked three cargo industry
veterans for their views on the EU’s target – whether they consider it
realistic or unrealistic.
Steven
Polmans, Senior Vice President, Cargo Global, Swissport
At the current pace, SAF demand is growing faster than SAF supply, and the gap
will widen before it narrows. Perhaps Europe can meet its mandated percentages,
but the industry is nowhere near producing enough SAF to achieve aviation’s
long-term decarbonization ambitions.
lSAF
currently represents less than 1% of global jet fuel consumption. This might be
a significant increase compared to a few years ago, but it is still tiny
compared to the industry’s net-zero roadmap.
SAFis
scaling far too slowly to meet the ambitions that were set five years ago. And
I do not see the right actions being taken nor the hard commitments being made
to make a solid roadmap towards 2050. I think we do not even talk enough about
it. Which might be the most worrying part of all.
Achim
Martinka: VP Global Air Freight, Commercial + Sustainability, DSV
Reaching the 6% target by 2030 is ambitious, but achievable.
However,
aviation isn’t the only user of SAF. Other industries also have green energy on
their agenda to reduce their carbon footprint. And High Tech has deeper
pockets. So, it could buy up the bulk of the SAF quota.
As
for the share of eSAF, I am very skeptical. The 1.2% quota is an extremely
ambitious target. To my knowledge, there is currently no manufacturer of eSAF.
Hendrik
Bender, VP Group Sales Business Development & Marketing, Sovereign Speed
In terms of availability, the EU target is achievable. For environmental and
climate reasons, decarbonization is an absolute must.
However,
the key question is, who will cover the additional costs? Major freight
forwarders can pass on the extra SAF charges to their customers. Similarly,
members of the pharmaceutical and aerospace industries have the funds to pay
for it as well.
But
small and medium-sized agents are likely to face financial difficulties. Will
they be sidelined and be labelled environmental offenders?
Rounding
it off
Panelists and participants consented that the gap between demand and supply,
leading to high costs, is the main obstacle to achieving a breakthrough in SAF
utilization.Also, it was agreed that the market cannot achieve economies of
scale on its own; so clear government guidelines are needed to steadily
increase the share of SAF in aviation.
However,
this must be done within the framework of a level playing field so as not to
put European airlines at a cost disadvantage compared to competitors from the
Middle East or the U.S. An appeal was also made to the big players among
forwarding agents to purchase large SAF volumes from manufacturers and to
increasingly involve SMEs by selling smaller margins to them. This would create
a broad ecosystem capable of exerting price pressure on SAF manufacturers.
Currently,
39% of the total SAF volume comes from European manufacturers with Neste and
World Energy leading the pack by contributing 60%, 34% stems from North
America, and 27% from the rest of the world, with African producers completely
absent.
Brazil,
the beacon of hope when it comes to SAF
Finally, it was a statement from IATA Chief Willie Walsh, regarding SAF, made
at the organization’s recent 82nd Annual General Meeting in Rio de Janeiro,
that was received positively at the Berlin debate on aviation fuel.
There,
Walsh had predicted that Brazil has all the ingredients to become a global SAF
powerhouse and to become a global leader in aviation’s decarbonization as seen
by its broad feedstock availability and its established refining base.
“Embracing
this opportunity will create jobs, reduce dependence on foreign fossil fuels,
build new energy and agriculture industries and grow the economy. With the
right policies implemented in the right order, Brazil is ready to jump-start
the market,” the official exclaimed.
Can Seaweed Deliver Europe’s
Lowest-Cost SAF?
The
EU’s primary legislation governing Sustainable Aviation Fuels (SAF) is the
ReFuelEU Aviation Regulation. By 2030, all aviation fuel supplied to aircraft
operators at EU airports must contain a minimum 6% SAF blend, rising
progressively in the years ahead. For airlines and cargo operators, the
challenge is whether enough affordable SAF will be available.
Will Spanish pioneer MacroCarbon significantly drive down the price of eSAF thanks to Seaweed? – Photos: courtesy of MacroCarbon
Spanish
startup, MacroCarbon, believes that pathway may come from an unlikely source:
marine biomass. Founded by Prof. Dr. Mar Fernández-Méndez and Jason Cole, the
company is currently carrying out a proof of concept with Airbus, Iberia,
Repsol and Vueling, and claims it can produce SAF at around EUR 1,000 per ton
at commercial scale. CargoForwarder Global spoke exclusively with
Fernández-Méndez, MacroCarbon’s Chief Executive and Science Officer.
Not
all SAF is created equal
SAF is often discussed as if it were a single product. In reality, different
production pathways have very different economics, feedstock requirements, and
scalability challenges. Used Cooking Oil (UCO) was initially considered the
easiest route to scaling SAF.
However,
its limited availability has led to widespread concerns about fraud, such as
the case uncovered in Malaysia in 2025, by a joint investigation by The Straits
Times and Climate Home News, where cheap, subsidized virgin oils were allegedly
mislabeled as UCO. SAF commands a substantial green premium, and bad actors
have exploited the supply chain to bypass environmental regulations and drive
deforestation.
eSAF
and iSAF offer significant emissions reductions, but their economics remain
challenging. Producing renewable hydrogen and capturing carbon dioxide requires
large amounts of electricity, making these pathways substantially more
expensive than conventional jet fuel.
According
to Fernández-Méndez, UCO-based SAF currently trades at roughly EUR 2,000–2,500
per ton, while eSAF can reach EUR 7,000–9,000 per ton. MacroCarbon’s target is
approximately EUR 1,000 per ton once fully deployed.
A
third pathway uses biomass. Most projects focus on agricultural residues or
forestry waste. The startup’s approach is different: marine biomass cultivated
offshore. Fernández-Méndez believes the real advantage is not only
environmental. The company argues that the ocean offers a scalable source of
biomass while generating additional high-value products that improve the
economics of SAF production.
According
to IATA, scaling SAF production remains a major challenge for the aviation
industry, with production volumes still far below what will be required to meet
net-zero targets. While MacroCarbon’s target cost would be highly competitive
if achieved, many emerging SAF pathways have historically encountered cost
overruns during scale-up and commercialization.
Building
a SAF supply chain offshore
The Canary Islands-based developer is currently carrying out a proof of concept
with Repsol, Airbus, Iberia, and Vueling. As part of the proof of concept,
Vueling will test SAF blends produced by MacroCarbon in a laboratory-scale
aircraft engine in Barcelona.
Under
the planned deployment, the project consists of approximately 6 km² of
aquaculture farms. This does not mean a single 6 km² installation, but multiple
modules of 40,000 m² each, distributed across different locations and together
totaling 6 km².
“Our
current farm is located in the Port of Las Palmas de Gran Canaria, Spain. The
40,000 m² farm will be situated near the Oceanic Platform of the Canary
Islands, which is located a few miles south of the Port of Gran Canaria,”
Fernández-Méndez explains.
Can
the economics work?
The biomass harvested from these farms would be processed in a dedicated
facility equipped with six gasification lines using pyrolysis technology and a
small-scale Fischer-Tropsch unit to convert the biomass into SAF.
While
MacroCarbon’s feedstock is unconventional, its gasification and Fischer-Tropsch
process relies on established technologies. The key challenge will be
demonstrating that marine biomass can be produced at sufficient scale and cost.
According
to MacroCarbon, the processing plant would require approximately EUR 90 million
in investment, while the aquaculture farms themselves would require around EUR
10 million, bringing total project CAPEX to roughly EUR 100 million.
The
company estimates production costs could reach approximately EUR 1,000 per ton
under its projected operating model. The figure remains subject to validation
through commercial-scale operation. If achieved, that would place the fuel
below current UCO SAF pricing and dramatically below most eSAF pathways.
The
project is expected to produce around 8,000 tons of SAF annually. At
approximately EUR 100 million in total capital expenditure and an annual SAF
output of 8,000 tons, long-term profitability will depend not only on fuel
sales but also on revenues generated from biostimulants, fertilizers, and other
co-products.
Europe’s
industrial challenge
The implications extend beyond passenger aviation. Air cargo operators face the
same ReFuelEU blending requirements and SAF-related cost pressures as passenger
airlines. Because fuel typically represents one of the largest operating
expenses for freighter carriers, the availability of lower-cost SAF could
directly influence future airfreight economics.
If
marine biomass-based SAF can be produced at the costs MacroCarbon is targeting,
it could help reduce the green premium that cargo operators may ultimately pass
on to shippers through SAF surcharges.
Fernández-Méndez
is blunt about what she sees as Europe’s biggest challenges: fragmented and
lengthy bureaucracy, combined with a venture capital system that remains
heavily focused on software and AI.
The
permitting process alone illustrates the problem. It took nine months to obtain
approval for MacroCarbon’s farm in Las Palmas, despite the project being
located in an area specifically designed for marine innovation and testing.
Financing
is another challenge. While software and AI startups promise investors rapid
returns, industrial projects require larger investments and longer timelines. “We
need patient and non-dilutive capital and governments to get involved,
basically China’s approach,” Fernández-Méndez says.
Europe
has already paid a price for delaying difficult industrial decisions. The
automotive sector is a recent example. Choices that once appeared too expensive
became far more expensive once global competition accelerated.
Aviation
has always been defined by flexibility and speed. The question is whether
regulators, investors, and the industry itself can move fast enough to secure
the SAF volumes it will soon be required to use. The challenge is even greater
when alternative fuels must compete against an incumbent energy system that
continues to benefit from decades of infrastructure, scale, and public support.
The
real constraint may not be feedstock availability, but Europe’s ability to
finance and permit industrial-scale SAF projects before competitors do.
How
major SAF pathways compare
While UCO remains the dominant commercial SAF feedstock today, concerns over
feedstock availability are driving interest in alternative pathways. Marine
biomass is among the newest approaches and could offer competitive economics if
commercial-scale production targets are achieved.
|
SAF
Pathway |
Primary
Feedstock |
Typical
Cost Range* |
Scalability |
Key
Challenge |
|
UCO-based
SAF (HEFA) |
Used
Cooking Oil, waste fats |
€2,000–2,500/ton |
Limited |
Feedstock
availability and traceability |
|
eSAF
/ Power-to-Liquid |
Renewable
hydrogen + captured CO₂ |
€7,000–9,000/ton |
High
potential |
Very
high energy and electricity requirements |
|
Agricultural
Biomass SAF |
Crop
residues, forestry waste, agricultural by-products |
€1,500–3,500/ton |
Moderate |
Feedstock
collection and logistics |
|
Marine
Biomass SAF |
Seaweed
and other cultivated marine biomass |
~€1,000/ton
(MacroCarbon target) |
Potentially
high |
Commercial-scale
validation still pending |
*Industry
estimates and company-reported figures; actual costs vary by technology, scale,
feedstock, energy prices, and location.
Noida Airport Set
to Launch First Cargo Flight Operations on June 17
Noida International Airport is set to achieve a major operational milestone with the launch of its first cargo flight on June 17, marking the beginning of air freight services at the upcoming aviation hub.
The
inaugural cargo movement is expected to pave the way for the airport’s
integration into domestic and international logistics networks ahead of the
full rollout of passenger operations.
The
start of cargo services is viewed as a significant step in establishing the
airport as a key logistics gateway for northern India. Located in the National
Capital Region, the airport is strategically positioned to serve manufacturing,
e-commerce, pharmaceuticals, perishables, and other high-value cargo segments
requiring efficient air transport connectivity.
Airport
authorities and logistics partners have been preparing cargo infrastructure and
operational systems to support freight handling activities. The maiden flight
will serve as an important test of the airport’s readiness and its ability to
support growing demand for air cargo services.
Once
fully operational, Noida International Airport is expected to play a
significant role in India’s aviation and logistics ecosystem, contributing to
trade growth, supply chain efficiency and regional economic development. The
commencement of cargo operations marks the first tangible step toward realizing
those ambitions.
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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