Interactive: Growing EU carbon allowance fees to hike shipping costs

Shipowners face rising costs in 2025 as the EU Emissions Trading System (ETS) impacts freight expenses for vessels operating in Europe. With the shipping sector now included in the ETS, companies must purchase allowances to offset CO2 emissions, leading to higher freight rates.

S&P Global Commodity Insights forecasts that EU Allowance prices will increase due to seasonal demand and energy dynamics. To mitigate these costs, stakeholders are encouraged to adopt innovative strategies, including energy-efficient technologies and collaborative cost management.

Related feature: Navigating new waters: Owners work to adapt to rising costs from EU emissions trading (subscriber content)