Evergreen recently announced its EU Emissions Trading System (ETS) fuel surcharge estimates seven weeks after the new regulation is set to take effect.

Starting January 1, 2024, all shipping vessels will be required to disclose the amount of carbon they emit for routes to and from Europe. After that, they will be obliged to purchase EUAs (European Union Allowances) that correspond to their carbon emissions from the previous year.

Initially, this requirement will apply to only 40% of their emissions, rising to 70% the year after and 100% in 2026.

"In compliance with the new law and the carbon pricing introduced by EU ETS, Evergreen line will collect the equivalent surcharge from January 1, 2024, for cargo origin or arriving Europe regime, and the estimated quantum as stated below is subject to periodic review," Evergreen said of its charges.

Under the new law, shipping companies are obligated to purchase allowances for the following emissions: 50% of emissions from voyages departing from an EU port to a non-EU port and vice versa; 100% of emissions from voyages between EU ports; and 100% of emissions from ships docked at an EU port.

For Asia-Europe, the Taiwanese carrier will charge €27/TEU and €41/TEU for reefer. It will collect €14/TEU for Europe-Asia/Australia (€21/reefer TEU), €19/TEU for the US, Puerto Rico (PR)-Europe (€29/reefer TEU), and €33/TEU for Europe-US, PR, while it is €50 per TEU for reefer cargo, among others.

 [Source: Evergreen]

Evergreen said the charges would be up for annual review but are "subject to change by prior notice or instruction by the carrier. Charge will also be collected additionally with the payment of Ocean Freight.

Its announcement follows Maersk, CMA CGM, MSC, Hapag- Lloyd and ONE in its indications of forthcoming surcharges to cover the EU ETS.