EU ETS Shipping Surcharge Breakdown: Carrier Strategies and Pricing

Posted by PartYard Marine

Starting in January, the European Union Emissions Trading System (EU ETS) will apply to all shipping activities within, departing from, or operating within EU waters. This cap-and-trade system will set progressively lower emission allowances for companies each year. These companies will self-monitor their emissions, subject to independent audits, and purchase EU allowances (EUAs) to offset their carbon emissions.

By 2024, the EU ETS will encompass 40% of emissions, rising to 70% in 2025 and reaching 100% by the following year. In 2026, calculations for the EU ETS will also include nitrogen oxides (NOx) and methane. However, services originating or terminating outside the EU will face a 50% charge, with carbon pricing determined by the respective third country.

Among the three carriers revealing their EU ETS rates, Hapag-Lloyd has provided detailed figures. They base their surcharge calculation on the average weighted shipment emissions per sub-relation, using standardized costs and the established Clean Cargo Emission Calculation Methodology. Hapag-Lloyd intends to create an easy-to-use calculator for customers to determine their emissions costs and display EU ETS-related expenses clearly. They will adjust their EU ETS charges quarterly, with rates ranging from €12 to €31 per teu for dry containers and reefers, depending on the trade route.

Hapag-Lloyd offers discounts of 25%, 50%, or 100% to customers using Ship Green, depending on the service chosen. Maersk also provides a green shipment option, ECO Delivery, to reduce EU ETS surcharges. However, Maersk’s charges may be notably higher than those of their German counterparts. Charges for Far East to North Europe range from €70 to €105 per feu, with return journeys costing €46 to €69. North America to the Mediterranean is priced at €66 to €91, with return journeys at €91 to €137.

CMA CGM calculates its charges based on the EUA price of €90 per tonne of carbon. They estimate charges for Asia to North Europe at €25 to €40 per teu, and Europe to North America at €43 to €65 per teu.

It is anticipated that all shipping lines will disclose the actual surcharges resulting from the EU ETS at least 30 days before the regulation takes effect.

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