Sustainable aviation fuel (SAF) is no longer just a sustainability initiative in air cargo — it is becoming a commercial and contractual factor.
Recent deals, including multi-year agreements between DHL and IAG Cargo and continued SAF-based cooperation between Nippon Express and Nikon, show a clear shift: SAF is moving from pilot projects to long-term logistics planning.
For shippers and freight forwarders, this means one thing — sustainability is now directly linked to procurement, pricing, and partner selection. With regulatory pressure increasing, particularly in Europe, SAF is quickly becoming part of the standard air freight operating model rather than an optional add-on.
What you need to know
- SAF is becoming part of air freight contracts, not just sustainability initiatives
- It increases costs but improves emissions performance
- Shippers are driving adoption through ESG and Scope 3 requirements
- Freight forwarders must integrate SAF into commercial and procurement processes
What is sustainable aviation fuel in air cargo?
SAF is no longer a future concept — it is already entering commercial air cargo operations. According to industry estimates, it can reduce lifecycle CO₂ emissions by up to 80%, making it a key tool for aviation decarbonization.
For logistics professionals, SAF is not just about emissions — it directly affects how air freight works.
SAF directly impacts:
- Air freight costs — due to higher fuel prices
- Capacity availability — limited global supply
- Procurement strategy — new contract structures and requirements
- Carrier selection — sustainability becoming a differentiator
At the same time, supply remains extremely constrained. SAF is expected to cover only a small share of global jet fuel demand, while prices can be significantly higher than conventional fuel.
This creates a critical market dynamic: SAF is becoming essential — but remains scarce and expensive. Compared to conventional jet fuel, SAF remains significantly more expensive but offers substantial emissions reduction benefits.
That is why long-term SAF agreements are gaining importance. They are not only about reducing emissions, but also about securing access, ensuring predictability, and strengthening competitive positioning.
Why recent SAF deals matter for the market
DHL, IAG Cargo, Nippon Express, and Nikon
Recent agreements are important not just as news — they reflect a structural shift in air cargo.
Key examples:
- DHL + IAG Cargo
Multi-year SAF agreement extending to 2030, integrating sustainable aviation fuel into long-term logistics strategy
- Nippon Express + Nikon
Second consecutive year of SAF-based air cargo cooperation, showing transition from pilot to recurring operational model
What these deals signal:
- SAF is becoming part of long-term contracts, not spot initiatives
- Large shippers are locking in SAF access early
- Sustainability is moving into core supply chain strategy
- Forwarders are becoming active players in decarbonization
In short, SAF is entering the contract layer of air cargo. This marks a fundamental shift: sustainability is no longer a reporting metric — it is becoming part of the commercial logic of air freight.
Where SAF fits in the air cargo value chain
To understand why SAF is becoming a contract standard, it is important to see where it sits in the air cargo ecosystem.
- Airlines — purchase and use SAF, integrate it into fuel mix
- Freight forwarders — package SAF into commercial offerings
- Shippers — pay for SAF through contracts and sustainability programs
This creates a new dynamic: SAF is not just a fuel — it is a shared commercial mechanism across the supply chain.
Each participant influences:
- cost distribution
- availability
- contract structure
The biggest constraint: limited SAF supply
Despite strong momentum, SAF adoption is still constrained by supply.
- SAF represents only a small fraction of total aviation fuel
- Production capacity is growing, but not fast enough
- Prices remain significantly higher than conventional jet fuel
This creates a key imbalance when demand for sustainable air freight is rising faster than supply.
As a result:
- early adopters gain access advantages
- pricing remains volatile
- long-term contracts become more valuable
Why SAF is moving from a green option to a contract requirement
1. Shipper pressure and ESG targets
Large corporations are under increasing pressure to reduce Scope 3 emissions. Air freight is one of the biggest contributors, making SAF a necessary tool for meeting sustainability goals.
2. Regulatory push (EU and beyond)
Policies like ReFuelEU Aviation are gradually making SAF mandatory in the market, shifting it from voluntary to structural.
3. Competitive differentiation
Airlines and forwarders are using SAF to strengthen their value proposition and win tenders.
Result: SAF is no longer optional — it is becoming expected.
How SAF is changing air freight pricing and procurement
One of the biggest impacts of SAF is on pricing — and this is where the shift becomes very real for B2B players.
SAF is significantly more expensive than conventional jet fuel, which means sustainability is now directly affecting air freight costs.
What is changing in pricing models?
- Introduction of SAF surcharge / green premium
- Separation of sustainability costs from base freight rates
- Increased price transparency in contracts
How procurement is evolving?
- Shift from spot buying → long-term agreements
- Integration of SAF into RFQs and tenders
- Closer alignment between procurement and ESG teams
What shippers need to consider?
- Cost vs sustainability trade-offs
- Internal carbon reduction targets
- Supplier sustainability capabilities
Air freight is becoming less transactional and more strategic.
The lowest rate is no longer the only decision factor — emissions and compliance are entering the equation.
For many companies, this creates a new challenge: how to stay competitive while absorbing higher sustainability costs.
As digital logistics platforms evolve, digital solutions for logistics by SeaRates, AirRates, and LandRates are starting to reflect these changes in how air freight is priced and managed.
What this means for freight forwarders and shippers
SAF is no longer just a sustainability topic — it is becoming a practical business variable that both freight forwarders and shippers need to actively manage.
For freight forwarders, this means moving beyond traditional transport execution:
- integrating SAF options into commercial proposals and RFQs
- clearly explaining SAF surcharges and cost structures to clients
- developing sustainability-linked service offerings
- partnering with carriers that can provide reliable SAF access
For shippers, the shift is equally significant:
- incorporating SAF into procurement and tender requirements
- balancing cost vs emissions reduction targets
- evaluating logistics partners based on sustainability capabilities
- aligning air freight decisions with corporate ESG and Scope 3 goals
In both cases, SAF is becoming part of standard decision-making — not an optional add-on. Also, tools like SeaRates CO₂ Calculator are increasingly helping forwarders incorporate sustainability factors into air freight pricing and procurement by calculating carbon emissions and comparing the offset by global carriers and airlines.
Looking ahead, this trend is expected to accelerate over the next few years:
- SAF will increasingly be included in long-term airfreight contracts
- Sustainability-linked pricing models will become more common
- Regulatory pressure will continue to expand, especially in Europe
- Competition will grow around access to low-emission air cargo capacity
As a result, companies that start integrating SAF into their logistics strategy today will be better positioned to secure capacity, meet compliance requirements, and remain competitive in a rapidly evolving market.
Key takeaway
SAF is no longer just about sustainability — it is becoming a core element of how air freight is priced, contracted, and differentiated in the market.
FAQ
What is SAF in air cargo?
SAF in air cargo refers to sustainable aviation fuel used to reduce lifecycle emissions from air freight operations. It is increasingly used by airlines, shippers, and freight forwarders as part of air cargo sustainability and decarbonization strategies. 
Why is SAF becoming important in air freight?
SAF is becoming important because large shippers face ESG and Scope 3 pressure, regulators are increasing sustainability requirements, and carriers and forwarders are using lower-emission services to differentiate their offerings. 
Does SAF increase air freight costs?
Yes. SAF is currently more expensive than conventional jet fuel, and industry bodies such as IATA say the price premium remains significant. That is why SAF surcharge models and contract-based sustainability pricing are becoming more common in air cargo. 
Are companies already using SAF in logistics contracts?
Yes. Recent examples include DHL and IAG Cargo’s multi-year SAF collaboration and the renewed SAF transport agreement between Nippon Express and Nikon. These examples show that SAF is entering long-term logistics relationships rather than staying limited to pilot programs. 
What does ReFuelEU Aviation mean for air cargo?
ReFuelEU Aviation gradually increases the required share of sustainable aviation fuel supplied at EU airports. For air cargo, it means SAF adoption is being shaped not only by voluntary ESG strategies but also by a binding regulatory framework.