Pamatek purchases ocean biofuel for all their projected needs in 2024

Pamatek is a supplier of technical components and products and a subcontractor to several major lighting and interior design brands. The company is experiencing an increasing demand from some of its market-leading customers to reduce its overall CO2 footprint. Patrick Skovbo, Chief Sales Officer, Pamatek, explains how CO2-neutral transport is becoming an increasingly crucial competitive parameter:

'For many of our customers, documentation of sustainable transport is a crucial sales parameter in winning large orders they might not otherwise be considered for. Therefore, our collaboration with SGL to use 100% sustainable fuel on all our ocean freight from China has been received very positively and has helped us stay competitive. We view it as an opportunity to improve our positioning and ensure the future of our business.'

Collaboration promotes sustainable solutions

Many customers opt for alternative fuels, such as ocean biofuel, for selected freight routes to optimise their operations. However, Pamatek takes a different approach by purchasing sustainable fuel for the year upfront. This decision involves a calculated risk between the expected consumption and a clear goal to reduce their emissions as much as possible.

Pamatek's commitment to reducing emissions is further emphasised by the fact that any excess biofuel left at the end of the year cannot be carried over to the following year's consumption if the 2024 emissions do not meet the calculations. Vise versa, Pamatek will supplement its biofuel supply if consumption is higher than expected at the end of the year, for instance, due to extended sailing around the Cape of Good Hope, which may be necessary because of the recent uncertainty in the Red Sea.

However, Pamatek’s ambitions extend beyond ocean freight. The company is also actively exploring opportunities in road and airfreight. Based on our good experiences with, for instance, customers in Denmark, Sweden and the Netherlands purchasing drop-in sustainable trucking fuels, we are in discussions regarding a sustainable transition for Pamatek's last-mile container freight. Additionally, they are considering our Sea-Air combination of ocean and airfreight as a sustainable alternative to reduce CO2 emissions for some of its customers.

Ulrik Jensen, Head of Ocean LCL Product Denmark, says:

'Companies must take action now to achieve their 2030 reduction targets, and Pamatek is playing a crucial role in setting the standard. That’s why we are proud to collaborate with Pamatek on the ocean LCL product, as it helps develop innovative solutions and approaches that align with our shared climate objectives.’

Merete Hosbond, Project Procurement Specialist, Pamatek, elaborates: ‘We aim to impact the world positively, also recognising the commercial value of reducing our emissions and providing CO2-neutral transport options for our customers.' 

She continues elaborating on exploring more future solutions together:

We have a strong and long-standing partnership with SGL for all our ocean and airfreight shipments. Their sustainability-focused mindset and willingness to support our sustainability journey have strengthened our collaboration. 

Sustainable fuel has several benefits

Ocean biofuel is not only beneficial for the environment, but it can also help companies achieve their reduction targets. Starting from 1 January 2024, the EU imposed fees for fossil fuel-powered ocean freight to or via Europe as of 1 January 2024. Companies like Pamatek can avoid these fees by purchasing ocean biofuel instead.

In 2023, many of our customers benefited from using consolidated container freight on a specific route connecting Europe and the United States, which ran on ocean biofuel. Pamatek's recent initiative to procure ocean biofuel for their LCL ocean freight from China to Europe adds to our extensive catalogue of sustainable transport solutions.

Trickle-down effect 
We are noticing a growing trend among our customers to pressure suppliers to adopt sustainable practices. This is confirmed by Johnny Møller, CEO of Pamatek, who states: 'Sustainable transport is increasingly becoming a differentiator. At a recent international trade fair, some customers were more interested in our CO2-reducing measures than our prices.' 

Pamatek uses this constructively by challenging and supporting its subcontractors, such as China, to adopt sustainable production methods.