The increasing complexity of emission regulations, such as the EU Emissions Trading System (ETS) and FuelEU Maritime, presents challenges for the shipping industry. Companies need to understand these regulations to mitigate operational and commercial risks associated with compliance.
Global Impacts of EU Regulations
Even companies outside the EU are affected by ETS and FuelEU Maritime. These regulations may incentivize less efficient ships to operate outside EU trade, increasing freight costs for non-EU voyages. Failing to factor in these costs can lead to unexpected financial exposure for shipowners.
Tools for Emission Calculation
To help the industry adapt, the Baltic Exchange offers an Emissions Calculator, allowing companies to estimate the cost of compliance with emissions regulations. By comparing specific vessels with Baltic standard routes, this tool provides a useful benchmark for understanding emissions alongside charter rates.
Building a Common Understanding
Standardized emissions benchmarks are key to fostering mutual understanding between shipowners and charterers. The Baltic Exchange’s forums and tools aim to promote awareness and investment in efficiency, reducing risks and capturing opportunities in a changing regulatory landscape.
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Source: Baltic Exchange
