Stay informed with NFL Freight's blog! Navigate the impact of new regulations on freight transportation in 2023. Trust our expertise for seamless logistics services, including traditional shipping, Full Truckload services, and comprehensive transportation solutions. Count on us as your reliable service provider.
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2023 Freight Regulations Demystified by NFL Freight
1. How New Regulations Affect
Freight Transportation in 2023
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.
2. 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.
AB5
This is for the first time supply chain pros are hearing of California's AB5 or “gig workerâ€
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.