Orient Overseas Container Line (OOCL) has announced its EU Emissions Trading System (ETS) fuel surcharge estimates ahead as the new regulation is set to take effect next year.

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.

Under this expansion, cargo ships travelling within and to/from the European Economic Area (EEA), which encompasses the 27 EU nations, Iceland, Liechtenstein, and Norway, will be subject to the regulations of the EU ETS that are as follows: 100% of the emissions at EU ports, and 100% of the emissions on voyages between EU ports. It will be 50% of the emissions on voyages between EU ports and non-EU ports.

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

"Even taking into account our ongoing programs to reduce emissions, it is still inevitable that the EU ETS will generate additional costs connected to us and the whole industry," OOCL said.

"As a responsible party in the supply chain, cargo owners or shippers should be prepared to share this cost."

It added that OOCL will be introducing the Emission Quantum, effective January 1, 2024, on various affected service routes, including Asia-Europe, Intra-Europe, Trans-Atlantic, Europe-Latin America and Europe-West Africa.

OOCL's EU ETS charges fall on the lower end of recently announced tariffs to be levied by other shipping lines.

For Asia-North Europe, the Hong Kong-headquartered carrier will charge €27/TEU and €41/TEU for reefer. It will collect €17/TEU for North Europe-Asia and €26/reefer TEU.

The carrier will charge the US to Europe €15/TEU for dry containers and €23/TEU reefer, and €46/TEU for dry containers and €69/TEU reefer, for the Europe to US route.

 [Source: OOCL]

"The quantum will be subject to monthly reviews in response to the latest EUA price and additional costs incurred in relation to EU ETS," OOCL said.

Earlier this month, COSCO Shipping and Evergreen also announced their EU ETS charges following Maersk, CMA CGM, MSC, Hapag- Lloyd and ONE in its indications of forthcoming surcharges to cover the EU ETS.