COMMENTARY BY JACK LIU, Senior Vice President, Air Logistics, Kuehne+Nagel Asia Pacific
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Sustainable Aviation Fuel (SAF) plays a huge role in achieving a transition to net-zero flying, and achieving emissions reduction goals across the aviation industry
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Kuehne+Nagel recently became the first air logistics provider to offer its customers the option to purchase SAF for all air freight logistics services
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The company helps customers calculate the amount of jet fuel kerosene that shipments are consuming and then uses SAF to substitute that amount
Air cargo is a key sector that contributes to global economic development and creates millions of jobs, transporting good and products to consumers worldwide. More recently, we have seen the important role air cargo plays in the transportation of temperature and time-sensitive items such as vaccines. Air cargo transports over US$6 trillion worth of goods, accounting for approximately 35% of world trade by value.
As businesses and corporations have begun to shift priorities towards the importance of sustainability, and the focus on sustainable logistics specifically continues to grow, there is an urgency to relook at current solutions, to reduce emissions and achieve net-zero transportation. The air transport industry has committed to reducing 50% in net emissions by 2050, with the IATA Cargo Services Conference adopting the Recommended Practice 1678 for CO2 Emissions Measurement Methodology in March 2014, a methodology to measure the CO2 emissions generated by air cargo at shipment level, in its efforts to reduce the carbon footprint of the industry.
Sustainable Aviation Fuel (SAF) plays a huge role in achieving a transition to net-zero flying, and achieving emissions reduction goals across the aviation industry. Logistics company Kuehne+Nagel recently became the first air logistics provider to offer its customers the option to purchase SAF for all air freight logistics services, across all its platforms and channels – online or offline. The offering of this new SAF option will contribute greatly to the reduction of carbon emissions, and impact the future of sustainable air logistics; however, there are still challenges that have to be addressed, in terms of adoption and the industry’s approach and attitude towards adopting sustainable practices.
What is SAF?
The term sustainable aviation fuel is used to describe a non-conventional (fossil-derived) aviation fuel, for example biofuels, which are derived from biological resources such as plant material, or synthetic SAF.
SAF is a key element to mitigate aviation’s impact on climate change. While the carbon lifecycle of fossil fuels is linear and releases additional CO2 emissions, the carbon lifecycle of SAF is circular aimed at re-using waste or biomass and emissions produced. The result of SAF use is a significantly reduced amount of additional carbon introduced into the global carbon cycle of at least 75%.
Using SAF to achieve sustainability in air logistics
Air cargo is an increasingly important component of global aviation and has seen a record growth – with CO2 emissions forecast to possibly triple by 2050. As such, it is important that companies find sustainable alternatives that will help them minimise their carbon footprints.
SAF is especially relevant in addressing carbon emissions from long-haul flights, as it can be blended with conventional jet fuel, and used and handled in the same way as traditional jet fuel. This means that no major changes or investment are required for building of new refuelling equipment or infrastructure, thus also providing financial advantages.
In the instance of Kuehne+Nagel’s new offering, the company helps customers calculate the amount of jet fuel kerosene that shipments are consuming and then uses SAF to substitute that amount. As part of our efforts, in line with the Science Based Targets initiative (SBTi) and commitment to a low carbon business model, we are continuously developing easy and transparent sustainable shipping options so that our customers have options of how they can minimise the environmental impact of their shipments.
To ensure full carbon neutrality when using SAF, companies also take further measures to neutralise the remainder of carbon emissions produced. At Kuehne+Nagel, the remaining CO2 emissions generated during production, processing, and transport of SAF can be avoided by overcompensating the amount of jet fuel kerosene replaced by SAF up to a ratio of 1:1.33 or offset via Kuehne+Nagel through carbon reduction projects that carry currently the highest quality certification “Verified Carbon Standard (VCS)” and/or “Gold Standard (GS)”.
Challenges in achieving sustainable Air Logistics
Though there are many sustainable options being offered to customers today, this does not mean that sustainable logistics is necessarily on a road to success. There is still a lot that needs to be done to change the culture and mindset of consumers and corporations, with regard to prioritising sustainability alongside profitability, as achieving carbon neutrality does come with a price. Companies need to work towards building and expanding environmental awareness within their own organisation and with their partners.
Beyond the availability of green options, it is our task as providers to work closely with customers, explaining the importance of such sustainable alternatives, and encouraging them to take the steps to achieve carbon neutrality in their logistics operations. This is especially important now, as the higher cost of SAF is a deterrent for companies to use SAF, limiting the demand, and making one of the main production challenges of SAF its economic viability. Adding to this, the limited quantities of SAF available are another challenge in the successful uptake of SAF in the short-term. Also with the current high prices and further uncertainty– customers are increasingly conscious of their logistics budget and reluctant to incur additional costs “just” for SAF or sustainability.
By educating companies on the benefits of using SAF, it will hopefully lead to greater uptake of SAF, allowing production to be scaled up, and potentially lowering the cost of SAF in future.
Ultimately, solutions such as offering the option of Sustainable Aviation Fuel, as well as digitalisation, packaging and palletising, selection of routes and carriers, choosing alternative transport modes, and innovative transportation are key developments in the future of sustainable air logistics, however, this is also just the beginning of the aviation industry’s progress towards being greener and more sustainable. Logistics companies must continue to work closely with partners and customers to develop and offer environmentally friendly and sustainable supply chain solutions. Achieving a sustainable future for air logistics will require the understanding and commitment of companies all along the supply chain, both logistics providers and customers alike.
