Flexport Acknowledged by White House for Advancements

At the recent Asia-Pacific Economic Cooperation (APEC) forum, Flexport, a prominent freight forwarder, received an unexpected commendation from the White House for its groundbreaking initiative aimed at assisting clients in minimizing supply chain emissions related to airfreight shipments. The Biden administration, in a meeting held in San Francisco, emphasized the imperative to decarbonize aviation, underscoring Flexport's contribution to this cause. As world leaders pledged ongoing collaboration to combat climate change, Flexport's program garnered visibility for its alignment with sustainability goals, akin to efforts undertaken by various airlines and cargo partners.

A fact sheet presented during the event outlined U.S. private-sector investments exceeding $50 billion in APEC economies, encompassing trade, sustainability, and other objectives. Boeing also announced collaboration with Asia-Pacific nations and the U.S. government to advance sustainable aviation fuel (SAF) development. Notably, Flexport was recognized for its partnership with Norway-based Choose, offering air cargo customers the opportunity to acquire SAF certificates applicable to freight movements with any vendor.

President Joe Biden, in his address to CEOs at the summit, acknowledged Flexport along with other major companies for their commitments to fostering greener and more sustainable economies. The acknowledgment highlighted the significant role of businesses, particularly those represented at the summit, in contributing to foreign direct investment into APEC economies.

Flexport, through a spokesperson, shared its announcements with White House staff organizing the APEC event, positioning its services as a model for empowering small businesses with technology and capital for sustainable growth. Although the exact financial details were not disclosed, Flexport's initiatives showcased its commitment to sustainability and technological innovation.

The lauded initiative involves Flexport's control of three Boeing 747-400 freighter aircraft and collaboration with Choose, enabling customers to purchase SAF certificates through a book-and-claim model. This model, while not unique to Flexport, allows for virtual SAF purchases, aligning with the broader industry trend observed in logistics companies like Kuehne+Nagel, DB Schenker, and DSV.

Flexport's SAF program addresses the challenge of limited fuel availability and infrastructure for distributing SAF to specific airports or flights. Through the book-and-claim model, customers can purchase SAF certificates, claiming the associated environmental benefits, and apply them to reduce their indirect carbon footprint. This innovative approach enhances accessibility to SAF, allowing businesses to contribute to emissions reduction without large fuel offtake agreements directly with air carriers or fuel suppliers.

Flexport's SAF program is facilitated by Choose, a software-as-a-service platform integrating climate programs into online sales offerings. This collaboration provides Flexport customers with a streamlined and transparent process to reduce emissions for air freight shipments on any trade lane with any carrier.

The broader context of sustainability in aviation underscores the industry's challenge in decarbonization. SAF is recognized as a bridge to a hydrogen or electric future, reducing earth-warming emissions and offering a cleaner alternative to conventional jet fuel. While SAF constitutes a small percentage of total global jet fuel consumption, the industry's commitment to net-zero carbon emissions by 2050 has spurred investments and initiatives to scale up SAF production.

Airlines, logistics companies, and industry stakeholders are increasingly partnering to subsidize SAF purchases and promote sustainable practices. Flexport's recognition by the White House at the APEC forum not only highlights its contribution to sustainable aviation but also underscores the industry's collective efforts to address environmental challenges through innovative solutions.