Regulators globally (especially in the EU) are tightening emissions rules for the maritime sector. As of 1 January 2024, the EU Emissions Trading System (ETS) has been extended to shipping vessels over 5,000 GT calling at EU ports must monitor, report, and purchase allowances for CO₂ emissions.
In 2025, the portion of emissions that must be covered is rising (e.g. 70% coverage target), and carriers expect carbon compliance costs to increase sharply.
In addition, new regulation like FuelEU Maritime requires emissions intensity reductions in bunker fuels used in EU waters — pushing the adoption of lower-carbon fuel blends, biofuels, or alternative fuel tech
Carriers are already passing carbon surcharges to shippers. Estimates suggest the EU ETS surcharge may add €75–100 per container on relevant routes or cause a 5–10% increase in freight on certain legs.
Moreover, the EU is also rolling out the Carbon Border Adjustment Mechanism (CBAM), which from 2026 will apply a carbon price on certain imported goods into the EU based on embedded emissions.
What’s the impact for Australian importers/exporters
- Higher freight costs on EU-related routes — your containers or goods landing or transiting via EU ports may face carbon surcharges
- Unpredictable surcharge bases — carriers may revise calculation methods, e.g. route by route, varying based on EU port calls.
- Competitive pressure in carbon-sensitive markets — EU importers and consumers are increasingly carbon-conscious; embedded emissions in goods may affect buying decisions
- Contract risk — if your contracts do not anticipate future carbon cost shifts, you may be locked into unprofitable margins
- Data & compliance burden — obtaining emissions data from suppliers, reconciling and documenting embedded carbon, particularly for EU import quotas like CBAM
What actions to take
- Ask for carbon-cost transparency in freight quotes
- Request carriers/forwarders to report whether ETS or fuel surcharges are included or separate
- Compare quotes on “all-in, including carbon compliance” basis
- Audit your supply chain carbon footprint
- Engage suppliers to provide emissions or energy data
- Start mapping which goods or routes may fall under CBAM or ETS exposure
- Consider route optimization & fuel-efficient carriers
- Use routes or carriers that minimize EU port calls
- Prefer more modern, fuel-efficient vessels where available (lower emission intensity)
- Negotiate carbon clause flexibility
- Insert surcharge adjustment clauses in your contracts
- Reserve right to pass through or share carbon cost increases with buyers/suppliers
- Plan for 2026 & beyond
- With full ETS coverage (100%) and CBAM operational, carbon costs will be a permanent input
- Explore participation in carbon offsetting, renewable energy sourcing, or green product branding
Sources: Magellan Logistics (export pressures, current account data); Seabridge Global Logistics (market commentary); TFG Global – Freight Market Update July 2025 (volatility and disruptions); Raw Global Freight Forwarders Melbourne – 2025 Ocean Freight Market Update (importer perspective).
Disclaimer – Market data is from public sources we consider reliable but has not been independently verified; accuracy is not guaranteed.