A recent study conducted by researchers at the University of Piraeus has highlighted the substantial financial impact of the European Union's Emission Trading System (EU ETS) on the shipping industry. The paper, which also compared the EU ETS with the International Maritime Organization's (IMO) Carbon Intensity Indicator (CII), found that the EU ETS is a major driver of increased operational costs.
Specifically, the research indicates that the cost of EU Allowances (EUAs) could initially add 11.5% to the fuel expenses for tankers and bulk carriers. For containerships, this initial increase is projected to be over 13%. The study warns that these percentages could rise significantly, potentially reaching 29% for containerships and up to 33% for tankers and bulk carriers, as the EU ETS regulations become more stringent over time.
For freight forwarders and operations managers, this means anticipating higher shipping costs for cargo moving through or within EU waters. These increased fuel surcharges, driven by EUA prices, will likely be passed on by carriers to shippers, impacting overall logistics budgets. Forwarders should factor these potential cost escalations into their pricing models and client quotes, especially for long-term contracts. The tightening regulations suggest a sustained upward pressure on freight rates for EU-related trade lanes, necessitating closer monitoring of EUA market prices and carrier surcharges.
