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FuelEU Maritime is on the horizon, set to launch in 2025 with the goal of reducing greenhouse gas emissions from ships in EU waters. It introduces tough new standards for GHG intensity of onboard energy, measured in CO2 equivalent per megajoule.
Non-compliance with the new regulation could hit your bottom line with penalties of €2,400 per tonne of VLSFO. If you haven't yet prepared for introducing low-carbon fuels in your fleet, don't worry—our pooling strategies can dramatically cut your compliance costs and buy you time to figure out a suitable strategy for future compliance.
Leveraging our experience in environmental commodity trading and our network of FuelEU surplus partners, we can help shipping companies avoid high costs and achieve the 2% regulation.
We know the ins and outs of maritime emissions can be daunting, but that's where we excel—providing targeted, impactful solutions that tackle emissions head-on, from port to stern.
Reach out if you would like to discuss how we can assist you in complying with FuelEU cost-effectively.
Non-compliance with the new regulation could hit your bottom line with penalties of €2,400 per tonne of VLSFO. If you haven't yet prepared for introducing low-carbon fuels in your fleet, don't worry—our pooling strategies can dramatically cut your compliance costs and buy you time to figure out a suitable strategy for future compliance.
Leveraging our experience in environmental commodity trading and our network of FuelEU surplus partners, we can help shipping companies avoid high costs and achieve the 2% regulation.
We know the ins and outs of maritime emissions can be daunting, but that's where we excel—providing targeted, impactful solutions that tackle emissions head-on, from port to stern.
Reach out if you would like to discuss how we can assist you in complying with FuelEU cost-effectively.
Don't get stuck behind while others make money of the energy transition!
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Route
Company
Total Profit
Far East to North Europe
MAERSK
€325,000
East Asia to North Europe
Hapag-Lloyd
€204,000
North Europe to USA
CMA CGM
€139,000
Europe to NAM (USA, Canada & Mexico)
MSC
€125,000
How Shippers Make EU ETS Profits
A recent study by Transport & Environment provides an insightful analysis of windfall profits in the shipping industry.
The profits are defined as the difference between the ETS surcharges levied by shipping companies and the actual ETS costs they incur.
The study utilized real operational routes from 2023 and mapped journeys made by each ship corresponding to routes where surcharges were announced.
To determine the emissions for each journey, the researchers multiplied each ship’s average emissions per nautical mile, as derived from the EU MRV regulation, by the distance traveled. The resulting emissions were then multiplied by the ETS prices assumed by the carriers, producing the total emission costs for each journey. These costs were converted to per-container ETS costs using load factors from the 2022 MRV database.
Finally, the total emission costs were subtracted from the ETS emissions surcharge revenue. This revenue was calculated by multiplying the announced route-specific surcharges with the utilized container capacity, revealing the ETS profit margin for each journey.
Implications
The findings of the recent study have significant implications for customers of shipping companies. The study reveals that many shipping companies are imposing ETS surcharges that exceed their actual ETS costs. This results in windfall profits for the companies, as the surcharges are higher than necessary to cover their emissions costs.
For customers, this means potentially higher shipping costs without a corresponding increase in service value. The inflated surcharges can lead to increased prices for goods transported by these companies, affecting both businesses and consumers who rely on these shipping services.
By utilizing CarbonLeap’s carbon insetting, you can bypass the EU ETS fees, which require polluters to pay for their greenhouse gas emissions due to non-green lanes. With our insets we help decarbonise the shipping lane and freightyou not only achieve a lower carbon footprint but also skip the inflated surcharges. In short, with carbon insetting, you don’t just l your emissions – you 'ship' out the extra costs too.
A recent study by Transport & Environment provides an insightful analysis of windfall profits in the shipping industry.
The profits are defined as the difference between the ETS surcharges levied by shipping companies and the actual ETS costs they incur.
The study utilized real operational routes from 2023 and mapped journeys made by each ship corresponding to routes where surcharges were announced.
To determine the emissions for each journey, the researchers multiplied each ship’s average emissions per nautical mile, as derived from the EU MRV regulation, by the distance traveled. The resulting emissions were then multiplied by the ETS prices assumed by the carriers, producing the total emission costs for each journey. These costs were converted to per-container ETS costs using load factors from the 2022 MRV database.
Finally, the total emission costs were subtracted from the ETS emissions surcharge revenue. This revenue was calculated by multiplying the announced route-specific surcharges with the utilized container capacity, revealing the ETS profit margin for each journey.
Implications
The findings of the recent study have significant implications for customers of shipping companies. The study reveals that many shipping companies are imposing ETS surcharges that exceed their actual ETS costs. This results in windfall profits for the companies, as the surcharges are higher than necessary to cover their emissions costs.
For customers, this means potentially higher shipping costs without a corresponding increase in service value. The inflated surcharges can lead to increased prices for goods transported by these companies, affecting both businesses and consumers who rely on these shipping services.
By utilizing CarbonLeap’s carbon insetting, you can bypass the EU ETS fees, which require polluters to pay for their greenhouse gas emissions due to non-green lanes. With our insets we help decarbonise the shipping lane and freightyou not only achieve a lower carbon footprint but also skip the inflated surcharges. In short, with carbon insetting, you don’t just l your emissions – you 'ship' out the extra costs too.
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