European Shippers opposes flat fuel levies

European Shippers opposes flat fuel levies
   The European Shippers Council said Wednesday it welcomes last week’s agreement at the International Maritime Organization for new ships to meet mandatory energy efficiency standards.
   ESC said it “acknowledges the importance of climate change for society and recognizes the responsibility users of transport services have in helping to reduce greenhouse gas (GHG) emissions of their supply chains.'
   The IMO's adoption of the Energy Efficiency Design Index (EEDI) is “the first globally binding measure to improve energy efficiency of new ships and limit CO2 emissions from international maritime transport. ESC believes that this is a major step taken by the IMO,” the council said.
   ESC said it wants “reduction measures which are incentive-based, rather than punitive; rewarding the reduction of GHG emissions of each vessel, rather than punishing those that do not. ESC is opposed to a uniform levy or tax on fuel purchases or which allows for costs or charges to merely be passed on to the customers through surcharges without offering a clear incentive to increase the efficiency of a ship or regardless of the vessel's efficiency.”
   The group said it is opposed to mandatory slow steaming or establishing an upper speed limit of vessel, which it said has been suggested by some non-governmental organizations. It argued that such a strategy would reduce the service performance, require additional ships to maintain frequency of delivery, add to the costs of supply chains, and could potentially increase greenhouse gas emissions.
van der Jagt
   “There needs to be clear recognition of the fact that whatever scheme is introduced, it should not raise the costs of efficient services, or curb economic growth. It must also provide an incentive to ship owners and operators to invest in ships and technology that reduce emissions,” said Nicolette van der Jagt, ESC secretary general. 'If you simply introduce a levy that punishes all carriers for emissions, they will just pass it on to customers. Where is the incentive in that?”
   While ESC said it agreed “regional measures on GHG emissions in shipping should be avoided,” it is “contributing constructively” to the discussions of the European Community’s Directorate-General for Climate Action.
   ESC said it believes shippers will increasingly be drawn to those ships that attract lower costs for the supply chain from lower emissions, provided the service does not diminish.
   “But can we wait for all nations to be ready with an instrument? We don’t think so,” the group said in a statement. “Ultimately a global scheme is better than one regionally devised; but it may be unrealistic to expect it to be adopted in one go. First movers in a scheme that rewards best practice rather than punishes existing practice, however, should gain market advantage.” ' Chris Dupin
Upcoming FreightWaves Events
Compliance

Brokerage Compliance Symposium

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Awards

F3 Awards Dinner

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
FreightTech

F3: Future of Freight Festival

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

October 27, 2026 – October 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Compliance Brokerage Compliance Symposium Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Awards F3 Awards Dinner Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
FreightTech F3: Future of Freight Festival Oct 27 – Oct 28 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now