Europe Ocean Freight Market Update January 2024

Europe Ocean Freight Market Update January 2024

Europe Ocean Freight Market Update January 2024

Europe Ocean Freight Market Update January 2024

Feb 9, 2024

3-5 min read

Reflecting on 2023: A Year of Unprecedented Challenges for Freight Forwarders

Higher freight costs impacted European chemical and plastics markets, influencing the prices of petrochemical imports, with segments like polyethylene, polypropylene, PET, and other intermediate petrochemicals affected. The increased costs led to a notable 15% surge in the prices of delivered petrochemical imports.

Global freight encountered hurdles, witnessing increased demurrage costs and extended transit times due to congestion and security concerns in vital passages like the Suez Canal. Demurrage costs rose by 20%, contributing to longer transit times.


Adapting to Regulatory Changes in 2024: Key Considerations for Freight Forwarders

  • The EU Emissions Trading System (ETS) included shipping, introducing phased emissions pricing, starting at 40% in 2024 and reaching 100% by 2026. This marked a pivotal change with a 40% cost implication in the first year alone.

  • The Carbon Border Adjustment Mechanism (CBAM) aimed to price carbon-intensive imports. Freight forwarders saw an immediate 8% increase in costs related to the pricing of carbon-intensive products.

Reflecting on 2023: A Year of Unprecedented Challenges for Freight Forwarders

Higher freight costs impacted European chemical and plastics markets, influencing the prices of petrochemical imports, with segments like polyethylene, polypropylene, PET, and other intermediate petrochemicals affected. The increased costs led to a notable 15% surge in the prices of delivered petrochemical imports.

Global freight encountered hurdles, witnessing increased demurrage costs and extended transit times due to congestion and security concerns in vital passages like the Suez Canal. Demurrage costs rose by 20%, contributing to longer transit times.


Adapting to Regulatory Changes in 2024: Key Considerations for Freight Forwarders

  • The EU Emissions Trading System (ETS) included shipping, introducing phased emissions pricing, starting at 40% in 2024 and reaching 100% by 2026. This marked a pivotal change with a 40% cost implication in the first year alone.

  • The Carbon Border Adjustment Mechanism (CBAM) aimed to price carbon-intensive imports. Freight forwarders saw an immediate 8% increase in costs related to the pricing of carbon-intensive products.

Reflecting on 2023: A Year of Unprecedented Challenges for Freight Forwarders

Higher freight costs impacted European chemical and plastics markets, influencing the prices of petrochemical imports, with segments like polyethylene, polypropylene, PET, and other intermediate petrochemicals affected. The increased costs led to a notable 15% surge in the prices of delivered petrochemical imports.

Global freight encountered hurdles, witnessing increased demurrage costs and extended transit times due to congestion and security concerns in vital passages like the Suez Canal. Demurrage costs rose by 20%, contributing to longer transit times.


Adapting to Regulatory Changes in 2024: Key Considerations for Freight Forwarders

  • The EU Emissions Trading System (ETS) included shipping, introducing phased emissions pricing, starting at 40% in 2024 and reaching 100% by 2026. This marked a pivotal change with a 40% cost implication in the first year alone.

  • The Carbon Border Adjustment Mechanism (CBAM) aimed to price carbon-intensive imports. Freight forwarders saw an immediate 8% increase in costs related to the pricing of carbon-intensive products.

Read the full article for free