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International Shipping
Chaos expected January 1 as EU carbon tax makes world debut
Date:2023-10-11 Readers:
CARRIERS are relying on guess work on charging for the EU carbon tax January 1 with Maersk thinking of US$73 per FEU whilel Hapag-Lloyd figures on $25 per FEU, reports New York's Journal of Commerce.

On Asia-North Europe, Maersk will charge EUR70 per FEU while Hapag-Lloyd will charge EUR24/FEU; on Asia-Mediterranean, Maersk will charge EUR20/FEU and Hapag-Lloyd EUR14/FEU.

"The numbers are intended to give shippers an indication of the potential magnitude, but the accurate numbers are not known yet," Alan Murphy, CEO of Sea-Intelligence, wrote in the latest Sunday Spotlight newsletter.

Mr Murphy warned that shippers can expect a "major misalignment" as other carriers release their ETS surcharge estimates.

The ETS is a carbon taxation system, and all ship operators will from January 1 be required to monitor and report their emissions and surrender EU Allowances (EUAs) for every tonne of CO2 they emit covering all voyages within the European Economic Area and 50 per cent of voyages ending or beginning in European ports.

The problem is that carrier emissions made in 2024 will not have to be paid until September 2025. This means shipping will have no clear idea of EUA prices to cover those emissions until September 2025 despite being required to levy surcharges from 2024, said Mr Murphy.


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