EU Emissions Trading System Surcharges Announced by Shipping Lines
Major container carriers Maersk, Hapag-Lloyd, and CMA CGM have recently announced estimated surcharges to comply with the upcoming EU Emissions Trading System (EU ETS) starting January 2023. The EU ETS will apply a cap-and-trade system to reduce maritime emissions for ships trading with Europe.
Surcharges are expected to range from €7-105 per TEU depending on the trade route. For example, Asia to Europe routes could see charges of €12-31 per TEU from Hapag-Lloyd and €70-105 per TEU from Maersk. Carriers are offering discounts on surcharges for bookings made under green shipment programs.
The EU ETS will phase in coverage of emissions, starting with 40% in 2024 and reaching 100% in 2026. It will also expand to cover NOx and methane emissions by 2026. Ships starting or ending trips outside the EU will only pay 50% of surcharges.
Carriers state they will recalculate and publish final surcharge amounts at least 30 days prior to the EU ETS taking effect in January. The announced charges provide an initial estimate of the revenue impact on container lines serving Europe as they prepare for the sweeping new emissions regulations.
