Danish international container shipping company Maersk on Tuesday (12 July) issued estimates of cost increases (in EUR) per Forty-foot Equivalent Unit (FFE) for selected trades during Q1 2023, based on expected EU Emissions Trading System (ETS) compliance rates.
“The cost of compliance with the ETS will likely be significant therefore impacting the cost of shipping. It is expected that the volatility of the European Union Allowance (EUA) traded in ETS may increase, as the revised legislation comes into effect,” it stated.
Below are estimates of cost increases per FFE for selected trades with the following considerations.
According to Maersk, a wide range of developments have been carried out in the world of regulatory affairs within logistics during the past months.
It noted the European Parliament adopting its version of the EU ETS legislation on 22 June 2022, and the Council of the European Union adopting its [different] version of the ETS legislation on 29 June 2022.
“With both European Parliament and the Council of the European Union both having adopted positions on the ETS proposal, the legislative process can enter the next phase,” explained Maersk.
“During this phase, the two institutions, together with the European Commission, need to reach a compromise before the proposal becomes legislation.
“Given the differing positions on elements such as the phase-in period, the percentage for voyages between EU and non-EU ports and when carbon pricing begins, as well as other non-logistics related issues these negotiations will take some time.
“We expect that political agreement can be reached towards the end of 2022.”
Note: The full Maersk report ‘EU Emissions Trading System (ETS) – latest developments’ published on 12 July can be read here.
Photo credit: Maersk
Published: 18 July, 2022
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