A common aspect when the calendar turns to January 1 is new regulations and laws taking effect. Freight transportation is no exception, with the main new rule affecting steamship lines now being enforced as 2023 begins. Beyond International Maritime Organization 2023 rules, there are other rules, laws and regulations either already in progress or several features of freight and logistics. Let's organize the latest regulations and its impact on freight transportation in 2023.
It refers to new regulations from the organization dealing with carbon emissions for steamships - also known as cargo ships or freighters or container ships depending on who you talk to. The goal behind this so-called maritime decarbonization from the UN's regulatory body is to reduce the carbon impact of all ships worldwide by forty percent compared to 2008. The IMO 2023 regulations involve: Energy Efficiency Existing Ship Index (EEXI) approval - EEXI considers vessel type date of manufacturing, technical specifications and size.
Carbon Intensity Indicator(CII) grade - All vessels should have an established CII, which links greenhouse gas emissions to cargo carried and distance traveled. Grades ranging from A to E with A being the best. Ships which are classified as D for three years or E once are supposed to implement a sorted plan of action to get to the A to C range.
Ship Energy Efficiency Management Plan (SEEMP) - The SEEMP should be in place for each vessel to optimize its energy efficiency. This plan should involve characteristics like better trip planning, equipment upgrades like newer propulsion systems and waste heat recovery systems and more frequent maintenance.
The 2023 regulations of IMO are embodied the next step in an ongoing process similar to IMO 2020 (that naturally went into effect in 2020) and applied reductions in Sulphur content in fuel making bunker fuel less crawlway . Reasonably, carriers will need to make investments to improve ships that fall short of these thresholds emissions wise whether it be replacing old vessels or upgrading equipment. The other method of meeting needs is by burning the lesser amount of fuel so that older ships can reduce the speeds by avoiding as much fuel, throughout the effects of the tract which cause a decrease in the capacity and minimized transit times.
This is for the first time supply chain pros are hearing of California's AB5 or “gig worker” law, but due to challenges and delayed enforcement, unreliability over its impact still remains. The AB5 law of California was passed in 2019 and was signed by Governor Gavin Newsom in early 2020.
Therefore, it was designed for protecting drivers of rideshare services like Uber and Lyft by regulating these companies in providing higher advantages and classifying the drivers as employees.If a worker does not pass strict criteria they may not be allocated like and would be required to be allocated as an employee of a carrier and be given associated advantages. After the Supreme court refused to hear a challenge by the California Truckers Association last summer, it appeared on its way to enforcement, therefore no concrete action has occurred as of yet.
On the other hand, as part of the bill that funded the government passed late in December, The Federal Government is to adopt guidance by the FMCSA that clarifies distinctions between freight brokers and termed as bona fide agents as well as the additional category of dispatch services. As bona fide agents the FMCSA decisive representing more than one carrier does not make a person a broker as such determination whether the person allocates traffic between carriers.