Adding UK port stops on Asia-Europe trade routes might help shipping lines avoid high EU carbon taxes. Lars Jensen, CEO at Vespucci Maritime, noted that adding the UK as a port of call before or after entering the European Union (EU) has carriers paying less ETS carbon tax.

Under the Emissions Trading System (ETS) rules, carriers must report and pay for emissions between non-EU ports to/from EU ports. A voyage from Asia to Europe would cost more in carbon taxes than one from the UK to the EU, thereby offering cost savings.

Although some think this is the main reason for the change, others such as Tim Power, managing director at Drewry in the UK, say it is also about saving money on inland transport and providing faster service to UK importers and exporters. Peter Sand from Xeneta pointed out that ETS costs are negligible compared to the currently high freight rates.

Source: ShippingWatch