AAL Shipping has emerged as the pioneer project heavy lift carrier to proactively release guidelines on a carbon surcharge. This strategic step aims to assist its customers in preparing for the imminent European Union regulations on carbon emissions set to take effect in the New Year.
Ahead of the extension of the EU Emissions Trading System (EU ETS) to encompass the maritime industry, impacting shipping routes between Europe and the rest of the world starting from January 1, 2024, AAL is taking proactive measures to mitigate the increased costs associated with carbon emissions.
The EU ETS extension will introduce fixed charges for every ton of CO2 emitted in the shipping sector. In response to these forthcoming changes, AAL has devised an ‘EU ETS Surcharge’ (EUETSS), scheduled to be applied to cargo loaded or already onboard an AAL-operated vessel on routes to or from European ports beginning in 2024.
The EUETSS, unveiled in August, will be intricately linked to the current EU Emissions Trading Price, vessel consumption averages, and cargo volumes. Specifically targeted at part cargoes on AAL’s regular trading routes to and from the European continent, the surcharge will be quoted separately from standard freight rates.
For full cargoes, AAL plans to calculate a surcharge based on estimated or actual voyage emissions. This marks a significant stride in aligning with the EU ETS, the world’s first carbon market launched in 2005, aimed at cost-effectively reducing greenhouse gas emissions.
Commencing January 1, 2024, the EU ETS will mandate all ship operators sailing to or from a European port to monitor and report their emissions. Purchase allowances will be surrendered as additional charges for every ton of CO2 emitted.
Felix Schoeller, AAL Director and Head of the carrier’s Sustainability Committee, emphasized, “As the industry progresses towards greater sustainability and oversight, it is incumbent upon us to ensure that our customers and other supply chain partners remain ahead of the game and kept fully apprised of how changing regulations will impact their cargo movements.”
Schoeller further added, “AAL will carefully monitor and share any adjustments on a quarterly basis. The EU ETS is an important step in protecting the environment in which we operate. This surcharge guidance comes on the heels of our latest Sustainability Report in 2022 that we released publicly in August and is our latest initiative in setting a new precedent for greater sustainability across the global multipurpose shipping sector.“
