Finland-based oil refining company Neste and Singapore's freight booking platform CargoAi have entered into a partnership to offer freight forwarders options to reduce their carbon emissions from air cargo transportation.
As of November, CargoAi is offering freight forwarders the option to purchase Neste's sustainable aviation fuel (SAF) when booking cargo transport, the companies said.
This can be done either after a booking is confirmed or when the cargo is being tracked, they said.
The offering will “further encourage forwarders to enter into discussions with their own clients about what is needed for the industry to move forward towards reaching the industry’s net zero targets together”, said Matthieu Petot, chief executive of CargoAi.
“We are also enabling access for smaller freight forwarding companies in 110 countries to purchase SAF in smaller quantities.”
SAF is a key element in helping to reach aviation industry's goal of net-zero carbon emissions by 2050.
While air cargo has historically been considered less environmentally friendly than other transport methods, it is taking steps to develop more sustainable solutions by investing in fleet modernisation, fuel efficiency, SAF and carbon compensation initiatives.
The partnership between Neste and CargoAi will allow the companies “to accelerate and broaden the utilisation of sustainable aviation fuel into new markets”, said Neste's Jason Reichow.
The collaboration will make Neste's MY Sustainable Aviation Fuel available to CargoAi customers for any cargo booked using its digital booking platform to reduce the emissions of their shipment.
During the booking or tracking phase, freight forwarders will automatically be prompted the carbon dioxide emissions of their shipment, calculated based on International Air Transport Association standards.
They will then have an option to purchase to reduce emissions.
Neste said it ensures specific SAF volumes purchased are delivered and used by partner aircraft operators, providing climate benefits and greenhouse gas emission reductions of up to 80 per cent.
“Purchasing SAF remained until now a hard-to-navigate, resource-intensive process and often required purchases of large volumes, which made reducing emissions at the transactional level very difficult,” said Magali Beauregard, chief commercial officer of CargoAi.
“With the direct purchase of SAF now embedded in the booking execution and tracking flows, we're taking the next steps to empower climate action by offering our clients straightforward, user-friendly and verifiable means to ensure reduced emissions.”
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