In our previous blog, we explored the expansion of the European Union Emissions Trading System (EU ETS) and its profound implications for the shipping industry. We emphasized the critical need for businesses to stay updated on the upcoming carbon emission surcharges set to take effect in 2024.

Today, we continue by providing you with essential carrier updates regarding these impending surcharges. This information will enable you to make informed decisions when selecting carriers for your operations, considering the variables in play as we move towards a more eco-friendly and cost-effective logistics landscape.

As you get up to speed, how to ensure you have the cost effective options to choose out of all the carriers based on CO2 emissions data in one place? Check out Freightify for hassle-free rate comparison from every carrier online along with their CO2 emissions data.

Let's dive into the latest carrier updates on carbon emission surcharges for 2024.

Evergreen

Evergreen becomes the first carrier to confirm 2024 surcharges for the EU ETS, with rates set at EUR 27 per TEU. These surcharges will come into effect from the onboard date, except for US loadings where the gate date will be considered. Annual reviews will be conducted, with the possibility of earlier adjustments through prior notice.

Maersk

Here are the estimated surcharges for Q1 2024, which is based on a 40% CO2 emissions obligation for the year, using a EUR 90 price for European Union Allowances (EUA).

What's cool? Maersk will give us a heads-up at least 30 days before the actual Emissions Surcharge kicks in.

Now, here's the good part:The surcharge will apply to regular bookings under the EU ETS, but if you opt for ECO Delivery, you're in the clear. ECO Delivery means we're all about green fuels, no surcharge involved.

Maersk will be tweaking the emissions surcharge every quarter to match the EUA price changes, keeping it real and fair.

CMA CGM

CMA CGM estimates the surcharge as shown below for some of the main trades impacted, based on a current market value of about EUR 90 per ton of CO2 for specific trades.

The surcharge amount, to be revealed in late December, could undergo quarterly reviews. This depends on changes in the EU ETS regulation and carbon allowance market values.

Hapag Lloyd

Hapag Lloyd released these figures as a reference to help you gauge the potential impact on your supply chain in 2024. Its details are subject to change.

If you've already added Ship Green in your quote or shipment, you're already reducing emissions by 25%, 50%, or 100%.

Good news: Hapag Lloyed will credit the same percentage of the ETS surcharge on your sea freight invoice for each shipment.

ONE

ONE is introducing an "ETS" surcharge. Here's the deal: The table below provides a high-level estimate of ONE's surcharge tariff, assuming that 40% of the reported CO2 will be subject to charges. Please note that these figures are estimates provided by CMA CGM and may change. The official surcharge tariff will be announced separately before implementation.

Regarding the tariff calculation, ONE plans to update it every quarter, with the December Future Price of the EUA price tracker sourced by ICE serving as one of the benchmarks.

MSC

With the EU ETS in motion, MSC’s customers are alerted to brace for higher operational costs. Customers will play their part in covering these expenses through the ETS surcharge.

It's not just for new agreements; existing Spot and Long-term contracts are in too. Over the next three years, in sync with the EU's phased-in approach, expect compliance costs to climb steadily.

The ETS surcharge stays agile with monthly reviews, tied to a benchmark public index for EUA prices.

But here's the twist: Your trade routes and MSC services will have tailor-made charging structures, ensuring precision for inbound, outbound, and roundtrip cargo.

And for a glimpse of what's ahead, check out our estimate below. It's based on a market value of around EUR 90 per ton of CO2, considering a phased-in approach of 40% from January 1, 2024.

As we wrap up our discussion on carrier surcharge expectations for 2024, we'd like to remind you that while we're covered on the above shipping lines, other shipping lines are expected to make their announcements in mid-November or December 2023, just before implementation.

So, what's next? We invite you to follow our upcoming post, where we'll delve into insights based on these rates and potential trends in surcharges across various shipping lines. Discover how these changes could impact your business in 2024. Stay tuned for more valuable information, and let's navigate this dynamic landscape together.