The article discusses the impact of the EU Emissions Trading System (ETS) on container shipping, revealing complexities in surcharge values and methodologies adopted by carriers. As the shipping industry enters the ETS phase-in period in 2024, discrepancies in emissions surcharges among major carriers raise questions about their accuracy and transparency. The lack of alignment in calculating costs for emissions, coupled with the volatile nature of the carbon market, adds challenges for shippers and carriers alike. The article explores the potential exposure of market participants to EU Allowance (EUA) price fluctuations and the uncertainty surrounding the integration of emissions costs into overall freight charges. As the industry faces increased scrutiny on decarbonization, the need for transparency in handling emissions costs becomes crucial for successful navigation through the evolving regulatory landscape.

SOURCE:GOOGLE