Samskip to pass EU ETS cost on to customers

Dutch logistic firm Samskip has informed its customers that a separate carbon tax will be charged over its base freight rate from next year onwards to cover its EU Emissions Trading System (EU ETS) costs.

PHOTO: The Samskip Innovator. Samskip

“We feel it is important to inform you on this to ensure transparency in our actions,” Samskip wrote to its customers in an update.

Most ships in Samskip's fleet operate on trade routes around the Baltic Sea region, where the ETS will cover EU ports and require Samskip to purchase EU Allowances (EUAs) to cover its fleet’s CO2 emissions on an annual basis.

Ship operation costs are expected to rise with the implementation of ETS next year, and so Samskip has decided to charge a carbon tax over its freight rate.

EU ETS will enter into force from 1 January 2024 and will be applicable to cargo and passenger ships exceeding 5,000 gross tonnes. The ETS will be phased in over three years, starting with 40% of CO2 emission covered in 2024, 70% in 2025 and 100% from 2026.

Shipping companies operating between and in and out of EU ports will be required to secure sufficient EUAs for to make up for their ships' CO2 emissions, and surrender these allowances annually as proof to the EU that they are complying.

According to the classification society DNV, EU ETS will definitely increase operational costs for shipping firms, but simultaneously motivate them to reduce emissions.

By Nithin Chandran

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