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Logistics UK responds to SAF Mandate aviation fuel plan announcement


The UK government has confirmed plans for the Sustainable Aviation Fuel (SAF) mandate, which requires increasing amounts of alternative fuels to be blended with kerosene starting from 1 January 2025.

The mandate will start at 2% of total UK jet fuel demand, increase on a linear basis to 10% in 2030, and then to 22% in 2040. By 2030, at least 10% of all jet fuel in flights taking off from the UK must come from sustainable feedstocks.

“The SAF mandate is a welcome regulatory measure to increase use of SAF in aviation," says Logistics UK’s Senior Policy Manager, Alexandra Herdman, "but availability and cost of SAF remain a key issue.

“SAF has the potential to reduce aviation emissions by 70%, but with costs double to triple that of kerosene, the mandate is not enough to drive prices down and production up. The UK should focus on domestic SAF production as well as a pricing mechanism and we look forward to engaging with government on their SAF revenue certainty mechanism consultation.”

Published On: 02/05/2024 14:00:00

 

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Airfreight advisory due to Iran/Israel conflict

Escalating political unrest in the Middle East, including Iran’s attack on Israel and Iran’s seizing of the MSC Aries container ship, has had an impact on air freight shipping.

While the Red Sea crisis has already led to a shift of large amounts of cargo traffic to air, the latest attacks are expected to see air freight costs to Europe rise by 10-15%, as well as a rise in insurance costs.

Some airlines have stopped accepting new cargo until further notice. It is expected that space in the market will become even tighter in the coming days. A possible increase in fuel prices could lead to a further rise in rates.

What to do?

Cargo insurance - Check your cargo insurance for any limitations and guidance, and be prepared for possible risk premiums to be introduced.

Contingency planning - It is important to review and discuss alternative supply chain options to prepare for any possible future changes.

Rates and space - Capacity and rates may change quickly, so keep in close contact with your account manager and prepare for a change in transit times.

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