Project heavy lift shipper AAL Shipping (AAL) has become the first to publish a carbon surcharge guide to prepare its customers for the higher costs that will result from upcoming EU regulations on carbon dioxide emissions.
This move comes ahead of the extension of the EU Emissions Trading Scheme(EU ETS) to maritime shipping, which will affect shipping routes between Europe and the rest of the world from January 1, 2024, with fixed charges for every tonne ofCO2 emitted.[ds_preview]
In view of these additional costs, which are directly attributable to multipurpose freight transport, AAL has developed a so-called “EU ETS Surcharge” (EUETSS). This surcharge will be applied from 2024 to cargo loaded onto or already on board an AAL-operated vessel heading to or leaving a European port.
Surcharge will take into account average ship consumption and cargo volume
The “EUETSS”, which was introduced in August this year, will take into account the current EU emissions trading price as well as average ship consumption and freight volume. The surcharge will apply per revenue tonne for part loads on AAL’s regular trade routes to and from the European continent and will be offered separately from normal freight rates. For full and complete loads, AAL intends to calculate a surcharge based on the estimated and actual emissions of the voyage respectively.
The EU Emissions Trading Scheme(EU ETS) is the world’s first carbon market. The system was introduced in 2005 and is intended to help reduce greenhouse gas emissions cost-effectively. From January 1, 2024, the system will also require all ship operators entering or leaving a European port to monitor and report their emissions, withadditional charges for the purchase of allowances for every tonne ofCO2 emitted.
AAL to monitor and report adjustments on a quarterly basis
“As the industry becomes increasingly focused on sustainability and control, it is our duty to ensure that our customers and other supply chain partners are always one step ahead and aware of the impact of changing regulations on their cargo movements,” said Felix Schoeller, AAL director and head of the airline’s sustainability committee. “AAL will carefully monitor and communicate any adjustments on a quarterly basis.”
Schneller added: “The EU ETS is an important step in protecting the environment in which we operate. This surcharge guidance follows our latest Sustainability Report 2022, which we published in August, and is our latest initiative to set a new precedent for greater sustainability in global multipurpose shipping.”
