Shipping companies allegedly overcharging customers for EU ETS compliance – T&E
A recent study by Transport & Environment (T&E) shows that some major shipping companies are imposing EU ETS surcharges that exceed the actual costs related to complying with the regulation.
PHOTO: Container terminal in the Port of Barcelona. Ships calling at Barcelona from this year will have to be covered by EU Allowances (EUAs) for their CO2 emissions to and from the port. Getty Images
Since the introduction of the EU Emissions Trading System (EU ETS) for shipping in January this year, shipping companies like Maersk and Samskip have started applying an ETS surcharge on the base freight rate. This additional charge is intended to cover the costs associated with complying with the EU ETS requirements.
These companies seem to be profiting from the ETS surcharges, the T&E study authors claim.
The study, which analysed over 500 voyages to and from EU ports, revealed that in nearly 90% of cases, shipping companies are imposing ETS surcharges on customers that surpass the actual costs incurred from the EU ETS regulation. Notably, Danish company Maersk is expected to rake in over €300,000 ($325,545) extra from a single voyage, showcasing the significant profit margins resulting from these charges.
The EU ETS is applicable to cargo and passenger ships exceeding 5,000 gross tonnes. It will be phased in over three years, starting with 40% of CO2 emissions covered in 2024, 70% in 2025 and 100% from 2026.
Despite concerns from southern European countries about potential port evasion and business losses, T&E's findings indicate that shipping companies are unlikely to evade the ETS as long as they continue to profit from it.
“Shipping giants appear to be ripping off customers by using environmental measures as a way to charge customers more. Whether it’s a disruption in the Red Sea or a new carbon price, shipping companies always win,” shipping manager at T&E, Jacob Armstrong said.
The study focused on major container firms, including Maersk, MSC, CMA CGM, and Hapag-Lloyd. Of these, Maersk is estimated to have made the highest average profit of €60,000 ($65,133) per voyage. While these profits differ per trip, they add up to significant annual amounts for carriers operating hundreds of vessels.
The findings of this study add to ongoing debates about the transparency and fairness of surcharges imposed by shipping companies.
By Debarati Bhattacharjee
Please get in touch with comments or additional info to news@engine.online
