New EU regulations on CO₂ emissions are set to raise shipping costs across Europe. Starting January 1, 2024, shipping companies are mandated to cover 100% of emissions from vessels visiting EU ports. This marks a significant change as the transition began with a requirement for 40% coverage in 2024 and 70% in 2025.
Impact on Shipping Costs
Shipping lines such as Maersk, Hapag-Lloyd, One, and HMM have already adjusted their environmental surcharges to accommodate these new regulations. These surcharges vary by route and are updated quarterly.
- Hapag-Lloyd: Forecasts an average surcharge increase of approximately 45%.
- Standard Container Surcharges: Range between $30 and $60 for routes between Europe and North America.
- Europe to Africa Routes: Surcharges may reach around $100.
Current CO₂ Prices and Compliance
The average price for CO₂ allowances in the European market is currently €72.4 per ton. The EU Emissions Trading System (ETS) now fully covers emissions for intra-EU voyages. For routes to and from non-EU ports, a 50% coverage of emissions is required.
This regulation places a heavier burden on services that enter European ports compared to those operating entirely outside the EU. To adapt to rising costs, several operators are utilizing more energy-efficient vessels in their European routes.
Regulatory Framework and Penalties
The shipping ETS came into effect on January 1, 2024, aiming to reduce greenhouse gas emissions by increasing the cost of CO₂ and encouraging less reliance on fossil fuels. Companies must submit their purchased allowances within the year following the emissions. For example, shipping lines must report allowances covering 40% of 2024 emissions by September 30, 2025.
According to the European Commission, over 3,300 shipping companies have submitted 35.6 million allowances, addressing more than 99% of the required emissions. Companies failing to meet their allowances face a penalty of €100 for each ton of CO₂ emitted, along with the obligation to provide the outstanding allowances.
