Sea and air transport in Europe to become more expensive due to environmental regulations

FuelEU will enter into force from 1 January 2025 obliging maritime carriers to reduce greenhouse gas emissions on routes within and to/from the EU. The law requires a 2% reduction in emissions in 2025, a 6% reduction from 2030, and gradually this should reach 80% by 2050.

MSC Group has issued a notice to its customers warning that the new requirements will boost the costs of shipping companies and to offset these new costs the company will introduce a new surcharge to its tariff. The size of the surcharge will depend on the actual additional costs incurred.

Other carriers are also likely to announce such surcharges in the coming three months.

It is also worth noting that the surcharges associated with the allowances will increase from the new year and then increase again a year later. Nitrogen oxide (NOx) and methane emission allowances will also be added to carbon dioxide emission allowances from the beginning of 2026.

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Lufthansa Cargo has announced that it will levy a surcharge to its tariffs to cover the cost of sustainable aviation fuel (SAF) quotas from 1 January 2025. Other airlines operating in the EU market are also expected to follow suit.

SAF costs are included to comply with new EU environmental regulations requiring the use of SAF on flights departing from EU countries. Starting in 2025, airlines will have to add at least two percent SAF to their fuel costs for flights within the EU.

By 2030, the EU’s SAF target will increase to six percent, with the UK and Japan setting a more ambitious target of ten percent.

Source: trans.info