Shippers are given preliminary carbon pricing as European legislation aimed to reach carbon neutrality by 2050 approaches.

The E.U. Emissions Trading System will apply to the shipping sector starting January 1, 2024, requiring ocean carriers to monitor and report their carbon emissions. By the end of the year, carriers purchase an equal amount of emission "allowances," where one allowance counts for one ton of CO2.

The legislation will apply to vessels travelling between E.U. countries and ships travelling between an E.U. and non-EU port.

Some details in the law are still yet to be finalized, such as a list of transhipment ports. The list is expected to be published by the end of 2023, according to an advisory from CMA CGM [https://www.cma-cgm.com/news/4463/preparing-for-the-eu-emissions-trading-system-application-to-shipping].

Here's a list of ocean carriers and their estimated 2024 carbon pricing:

CMA CGM

CMA CGM, which announced its estimated carbon pricing on October 5 [http://www.cma-cgm.com/news/4463/preparing-for-the-eu-emissions-trading-system-application-to-shipping], said it "decided to alert that EU ETS added costs will induce a surcharge applicable for all containers loaded on CMA CGM services impacted by the regulation."

The carrier's surcharge amounts will start in mid-November and will be reviewed quarterly.

CMA CGM's estimated carbon emission surcharges

Trade                                                   Dry price per TEU (EUR)           Reefer price per TEU (EUR)

Asia to North Europe                                                         25                                           40

Asia to Mediterranean                                                       20                                           30

Europe to North America                                                   43                                           65

Europe to South America West Coast                              43                                           60

North Europe to Mediterranean                                        25                                           35

Intra Mediterranean                                                          25                                           40

Intra North Europe                                                            37                                           48

SOURCE: CMA CGM

 

Maersk

Maersk announced its estimated carbon pricing on September 15.

"The cost of compliance is expected to [be] significant and will keep increasing with the phased implementation," the ocean carrier said in a statement[http://www.maersk.com/news/articles/2023/09/15/eu-emissions-trading-system-ets]. "It will be passed on in the form of a standalone surcharge known as 'Emissions Surcharge' applied to all bookings on the voyage that will be subject to the EU ETS."

Maersk's ECO delivery bookings will not be subject to the emissions surcharge as the service replaces fossil fuels with biofuels[https://www.supplychaindive.com/news/maersk-to-ship-amazon-goods-using-biofuel/693579/].

For Maersk shippers, the emissions surcharges will be updated every quarter.

Maersk's estimated carbon emission surcharges

Trade                                                 Dry price per FFE (EUR)   Reefer price per FFE (EUR)

West Coast South America to Europe                            74                                           111

Europe to West Coast South America                            83                                           125

North Europe to Far East                                                  46                                            69

Far East to North Europe                                                  70                                           105

South Europe to the Far East                                           11                                            17

Far East to South Europe                                                 20                                            30

North Europe to the Middle East & Indian Subcontinent  32                                            48

USA to North Europe                                                         58                                            87

North Europe to USA                                                         81                                           122

SOURCE: Maersk

 

Hapag-Lloyd

Hapag-Lloyd announced its estimated carbon pricing on September 21.

Shippers already using Hapag-Lloyd's Ship Green service will receive a credit of 25%, 50%, or 100% of the ETS surcharge on the freight invoice, the carrier said in a statement[https://www.hapag-lloyd.com/en/services-information/news/2023/09/ets-european-trading-system-carbon-emissions.html]. Ship Green helps shippers avoid[http://www.hapag-lloyd.com/en/online-business/book/ship-green.html] 25%, 50% or 100% of emissions.

"The emissions accounting will start in 2024, and the first ETS allowances are to be surrendered in September 2025. In 2027, ships will pay for 100% of the emissions released in 2026," the carrier said.

Hapag-Lloyd's estimated carbon emission surcharges

Trade                                                 Dry price per TEU (EUR)   Reefer price per TEU (EUR)

East Asia to North Europe                                                 12                                           31

East Asia to South Europe                                                   7                                           16

North Europe to North America East Coast incl. MX East Coast  9                                  16

North Europe to South America West Coast                      12                                           21

Europe to West Africa                                                        17                                           29

North Europe to the Middle East                                       12                                           22