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Shippers are being given preliminary carbon pricing as European legislation aimed to reach carbon neutrality by 2050 fast approaches.

The EU Emissions Trading System will apply to the shipping sector starting Jan. 1, 2024, and will require ocean carries to monitor and report their carbon emissions. By the end of the year, carriers purchase the equal amount of emission “allowances,” where one allowance counts for one ton of CO2.

Legislation will apply to vessels traveling between EU countries and vessels traveling between an EU and non-EU port.

Some details in the law are still yet to be finalized, such as a list of transshipment ports. The list is expected to be published by the end of 2023, according to an advisory from CMA CGM.

Here’s a list of ocean carriers and their estimated 2024 carbon pricing.

CMA CGM

CMA CGM, which announced its estimated carbon pricing on Oct. 5, said it “decided to alert that EU ETS added costs will induce a surcharge applicable for all containers loaded on CMA CGM services impacted by the regulation.”

The carrier’s surcharge amounts will start mid-November, and will be reviewed on a quarterly basis.

Maersk

Maersk announced its estimated carbon pricing on Sept. 15.

“The cost of compliance is expected to [be] significant and will keep increasing with the phased implementation,” the ocean carrier said in a statement. “It will be passed on in the form of a standalone surcharge known as ‘Emissions Surcharge’ applied to all bookings on the voyage that will be subject to the EU ETS.”

Maersk’s ECO delivery bookings will not be subject to the emissions surcharge as the service replaces fossil fuels with biofuels.

For shippers using Maersk, the emissions surcharges will be updated every quarter.

Hapag-Lloyd 

Hapag-Lloyd announced its estimated carbon pricing on Sept. 21.

Shippers already using Hapag-Lloyd’s Ship Green service will receive a credit of 25%, 50%, or 100% of the ETS surcharge on the freight invoice, the carrier said in a statement. Ship Green helps shippers avoid 25%, 50% or 100% of emissions.

“The emissions accounting will start in 2024, and the first ETS allowances are to be surrendered in September 2025. In 2027, ships will pay for 100% of the emissions released in 2026,” the carrier said.