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Container sector braces for significant penalties from FuelEU maritime rules

Posted on July 18, 2024 |

A German analysis indicates that the container sector will face the majority of penalties from the upcoming FuelEU Maritime regulation, potentially accounting for nearly one-third of all fines.

The FuelEU Maritime regulation, set to start next year, is prompting shipping companies to prepare for potential penalties for not meeting greenhouse gas (GHG) intensity reduction targets.

Ships that fail to achieve the initial 2% GHG reduction target, based on a 2020 baseline, will be fined €2,400 per tonne of VLSFO-equivalent.

The GHG intensity requirement applies to all energy used on voyages and port calls within the EU/EEA, and 50% of voyages into and out of the region.

OceanScore estimates that the shipping industry will incur FuelEU penalties totaling €1.345 billion in 2025.

The analysis includes 13,000 vessels over 5,000 gross tonnage that trade within and into the EU/EEA, which are subject to the regulation.

The financial impact of the FuelEU Maritime regulation is a major concern for the shipping industry as it braces for stricter GHG reduction targets.

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