The upcoming voting of the Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) at the end of November and a special session on December 4, 2023, could have significant impacts on carbon costs in maritime transport. This voting will address how carbon costs are calculated and allocated in cargoes and may affect cargo pricing.
Voting Details and Its Effects
If the proposed framework is not accepted, carbon costs for a cargo transported from Santos to Rotterdam will remain at 66,000 euros. However, if the new framework is approved, carbon costs for this cargo will significantly increase. For example, if approved, carbon costs will rise to about 96,000 euros by 2028.
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These changes will particularly impact various routes. For instance, a cargo traveling from Santos to Qingdao will face an increase in carbon costs of 61,000 euros by 2028. Meanwhile, carbon costs for other cargoes entering Europe will be significantly affected.
Cost Predictions and Consequences
According to current forecasts, if the new framework is not approved, carbon costs in Europe will gradually increase. By 2030, carbon costs for a similar cargo will reach 85,000 euros. This increase in costs will gradually affect cargo pricing and may lead to significant changes in how costs are calculated.
Additionally, for brokers, it is crucial how the carbon cost is allocated. If the new framework is approved, every cargo entering Europe must have a specified carbon line, which could lead to more complexities in charter contracts and cargo pricing.
Ultimately, this voting and its results will not only impact carbon costs in Europe but could also affect the global shipping market. Therefore, close monitoring of these developments and their implications is essential for all stakeholders in the maritime transport industry.
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