Container transport will suffer the most from the upcoming FuelEU Maritime regulation

A new analysis from Germany shows that the container sector will suffer the most from penalties under the upcoming FuelEU Maritime regulation, with the sector likely to account for almost a third of all payouts.

The financial implications of FuelEU Maritime, which comes into force early next year, are a focus for shipping companies, which face potential penalties for failing to meet greenhouse gas (GHG) emission intensity reduction targets.

Vessels will be charged a penalty of €2,400 per tonne of VLSFO equivalent for failing to meet an initial 2% reduction target from a 2020 baseline. The GHG emission intensity requirements apply to 100% of energy used on voyages and calls at ports within the EU/EEA and 50% of voyages to and from the bloc.

OceanScore has identified the segments that will be most affected. OceanScore forecasts that shipping as a whole will face FuelEU penalties of €1.345 billion in 2025, based on an analysis of 13,000 vessels above 5,000 gt that trade within and into the EU/EEA and are subject to regulation.

As with the European Union Emissions Trading System (EU ETS), it is the container segment that will have to pay the largest amounts, being exposed to 29% of the gross penalties according to OceanScore, followed by ro-axles with 14%, and tankers and bulk carriers with 13%.

“It is crucial for shipping companies to establish a baseline of expected FuelEU costs to secure proper planning and budgeting processes to compare different mitigation options, as well as decide what to do with outstanding compliance balances,” said OceanScore Managing Director Albrecht Grell. “This will require, more than the EU ETS, a corporate strategy to determine how to reduce the compliance balance/deficit, how to commercialize the surplus and how to deal with remaining deficits.”