Singapore-headed CargoAi, air cargo’s fastest-growing digital solutions provider, and Finland-headed Neste Oyj, the world’s leading producer of sustainable aviation fuel (SAF), have announced a pioneering partnership that enables freight forwarders and their clients to significantly reduce the carbon emissions of their air cargo transport through the purchase of "Neste MY Sustainable Aviation Fuel."
Freight forwarders arrange transportation for the cargo of other companies and play a pivotal role in reducing the carbon emissions associated with such cargo transports.
Launched in 2019, CargoAi is closing the technology gap and driving the enablement of an efficient and connected airfreight ecosystem. As of November 2022 onwards, CargoAi offers the possibility to purchase Neste MY Sustainable Aviation Fuel when booking cargo transport.
This can be done in the booking flow – either after a booking is confirmed or when the cargo is being tracked and complements CargoAi’s Cargo2ZERO sustainability offering launched in October 2022.
We are proud of this landmark partnership with Neste, as sustainability is at the core of all our product developments and customer interactions. Building on the CO2 Efficiency Score already available in our Cargo2ZERO solution 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. We are also enabling access for smaller freight forwarding companies in 110 countries to purchase SAF in smaller quantities, said Matthieu Petot, CEO of CargoAi.
The use of sustainable aviation fuel (SAF) significantly reduces greenhouse gas (GHG) emissions from air transport.
Purchasing Neste-produced SAF helps companies meet their climate targets and credibly report their carbon dioxide equivalent (CO2eq) emissions reductions.
I am excited to announce this pioneering partnership between Neste and CargoAi. Working with an innovative and industry-leading partner such as CargoAi allows us to accelerate and broaden the utilization of sustainable aviation fuel into new markets. Through this partnership, Neste MY Sustainable Aviation Fuel is made available to CargoAi customers for any cargo booking to reduce the emissions of their shipment while utilizing CargoAi’s innovative digital booking platform. We are very proud of our partnerships with like-minded organizations sharing the same commitment to a more sustainable future for aviation, said Jason Reichow, VP, Business Development, Renewable Aviation, at Neste.
How the CargoAi x Neste offering works
We designed Cargo2ZERO as a suite of solutions for integrating and accelerating climate action into the air freight procurement process. 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.
During the booking or tracking phase, freight forwarders will automatically be prompted with data on the carbon dioxide (CO2) emissions that their shipment will emit, calculated based on International Air Transport Association (IATA) standards.
They will then have the option to purchase varying percentages of SAF to reduce emissions. Neste ensures the purchased SAF volumes are delivered and used by partner aircraft operators.
The emission reductions achieved will be reported back and can be used to credibly report against sustainability targets.
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. We are extremely delighted about this landmark partnership with Neste and confident that this will enable clients of any size to take effective climate action without further delay, explained Magali Beauregard.