With the publishing and international distribution of our latest Sustainability Report 2022 in August, AAL is taking major strides to lead the way in ESG initiatives and sustainable operations within our shipping sector.
As part of our advocacy for closer and more transparent practices between ocean carriers and their customers and supply chain partners, we take this early opportunity to advise that from January 2024, the European Union Emissions Trading System (EU ETS) will encompass the shipping sector to limit emissions of pollutants across a wide trading region.
The EU ETS is a carbon emissions trading scheme that was launched in 2005. The inclusion of shipping into the scheme is a significant milestone in combating climate change and an initiative that AAL fully endorses for the ongoing protection of the environment in which we operate each day, and the longer-term sustainability of the entire sector.
The EU Commission provides a helpful ‘FAQ – Maritime transport in EU Emissions Trading System (ETS)’, for further reading:
From January 2024, all ship operators will be required to monitor and report their emissions when sailing either to or from a European port, and purchase allowances as additional charges for every ton of CO2 emitted. When a vessel sails between an EU and non-EU port, only half of related voyage emissions will be considered.
With these additional costs directly attributed to our customer cargo operations, AAL has developed a simple ‘EU ETS Surcharge’ (EUETSS), to provide our partners with the early transparency needed to factor same into their 2024 ocean transport budgets.
The EUETSS will be applied to cargo either loaded, or already onboard, an AAL operated vessel sailing either to or from a European port from January 1st, 2024. It will apply per Revenue Ton to Part Cargoes on AAL regular trading routes to and from the European continent and will be quoted separately from our normal freight charges.
| EU ETS SURCHARGE (EUETSS) per RT | |
| EUROPE-> MIDDLE EAST & INDIA | USD 3.00 per RT |
| For containers: USD 100.00 per 20FT; USD 200.00 per 40FT; USD 230.00 per 45FT | |
| EUROPE-> SOUTHEAST ASIA & FAR EAST | USD 4.20 per RT |
| For containers: USD 140.00 per 20FT; USD 280.00 per 40FT; USD 320.00 per 45FT | |
| FAR EAST & SOUTHEAST ASIA -> EUROPE | USD 4.20 per RT |
| For containers: USD 140.00 per 20FT; USD 280.00 per 40FT; USD 320.00 per 45FT | |
| MIDDLE EAST & INDIA -> EUROPE | USD 3.00 per RT |
| For containers: USD 100.00 per 20FT; USD 200.00 per 40’ft; USD 230.00 per 45FT | |
The above EUETSS calculations are valid from January 2024 until 31st March 2024 and AAL will carefully monitor and share any adjustments on a quarterly basis – based upon average vessel consumption and cargo volumes, as well as the EU Emissions Allowance Trading Price at that time.
The EUETSS is also only applicable for part cargoes. For full and complete cargoes, AAL intends to calculate a surcharge based on estimated / actual voyage emissions.
The European Union Emissions Trading System is vital to the future of shipping, and we are committed to ensuring that our customers and other supply chain partners are kept fully appraised of how it will impact their cargo movements going forward. Our Teams worldwide are available for any queries you may have at chartering@aalshipping.com.
Thank you.
AAL Shipping (AAL)
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