Until now, if necessary, charterers could simply estimate freight using a calculator. Simply get the value from the distance table, select the speed of the ship and consumption, calculate travel time and fuel costs, add port costs on top, 10% sea margin, profit and commission, done.

Since the beginning of 2024, things have become more complicated. As soon as you reach Europe, you have to compensate for CO2. For 2024 it is 40% of the amount emitted. In 2025, 70% will be charged, then 100%. Calls from non-EU countries to Europe and vice versa are only being calculated at 50%, within Europe 100% is due.

An example: A trip from Houston to Istanbul requires approximately 207 mt of MGO, which means fuel costs of T$176 (consumption 12 mt/day, $850/mt, excluding port costs). The price for a ton of CO2 may be around $85. They are due when the ship makes a stopover in Europe. If the ship also calls at a European port (e.g. Porto) in between to load or unload there, the ETS costs (European emissions trading system) amount to some 6% of the fuel costs. In 2026 it will already be 16%, provided the CO2 price does not increase. However, this is what most observers assume.

If you calculate a reasonable trip, the ETS costs for non-EU to EU this year are likely to be in the range of a normal commission. For trips within Europe, the value is double, i.e. between 12% of fuel costs this year and 32% in 2026.

So it’s definitely worth doing the math carefully. There are also special cases in which other percentages apply: If the ship only calls at Europe for bunkering, it remains at 0%. If it takes a detour from Europe to a non-European port and does not load or unload there, then the entire voyage counts as 100% as long as it sets course for Europe again to take on cargo there.

If you are looking for an alternative to your calculator: With CharterWorks you can calculate exactly what costs you will incur without any unpleasant surprises. Interested? Book an appointment for an online presentation now and find out more: https://www.charter.works/onboarding/ We look forward to seeing you!

#shipping #chartering #co2 #eu-ets