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20-Nov-2023 | 04:20
EU ETS Regulation – New Emission Fee (NEF) Charge
arrow Go Back
20-Nov-2023 | 04:20
EU ETS Regulation – New Emission Fee (NEF) Charge

Dear Valued Customer,
At ZIM, we are committed to complying with the environmental sustainability and the reduction of our carbon footprint. We would like to provide you with information regarding the upcoming implementation of the European Union Emissions Trading System (EU ETS) and its implications on the shipping industry and our services.

As part of our commitment to address climate change, the European Union Emissions Trading System (EU ETS) will be in effect from January 1st, 2024. The EU ETS sets a limit on emissions for various industries, including shipping, and requires shipping companies to obtain emission allowances to cover their emissions above the yearly limit. This system aims to reduce greenhouse gas (GHG) emissions by 55% by 2030, compared to 1990 emissions levels, and achieve net-zero emissions by 2050.

From January 1st, 2024, shipping lines will be required to report their emissions and purchase an equivalent number of allowances on the EU ETS market, according to a progressive schedule:

  • For 2024, 40% of reported emissions will have to be converted into allowances.
  • For 2025, 70% of reported emissions will have to be converted into allowances.
  • From 2026 and onwards, 100% of reported emissions will have to be converted into allowances.

Shipping companies are obligated to purchase allowances for the following emissions:

  • 50% of emissions from voyages departing from an EU port to a non-EU port and vice versa.
  • 100% of emissions from voyages between EU ports.
  • 100% of emissions from ships docked at an EU port.

What does This Means for you as ZIM’s customer:

To comply with these regulations, ZIM expects an increase in operational costs, which will be added as a dedicated NEF (New Emission Fee) charge. Please note that the new dedicated NEF charge rates will vary depending on the specific trade routes and services.
The NEF will be applied to the vessels arriving at EU ports on or after January 1st, 2024, and to vessels departing EU ports starting January 1st, 2024 and onwards.

Therefore, the following are the current New Emissions Fee (NEF) rates effective as of December 13th, 2023, for all sailings arriving to or departing from EU ports on or after January 1st 2024, till further notice, applying to FAK (Freight All Kind) cargo, for the relevant trades below. * At this stage, we are publishing the NEF rates for some trades. We shall publish an additional advisory for the remaining trades in the coming weeks:

From or to Relevant ZIM EU ports on Trades: NEF
North America, West Coast South America, Caribbean to Europe & Mediterranean (including, but not limited to France; Spain; Italy; Romanie; Bulgaria) €37/TEU
India Subcontinent to Europe (including, but not limited to Italy; Romanie; Bulgaria), Mediterranean, Black Sea €13/TEU

 

Above charges are additional to the applicable base freight charge, THC, bunker, security and PSS related charges which are provided in ZIM's Tariff Calculator (U.S. trades are provided in www.boterates.com User: ZfreA6 Password: Access16!) as well as other charges for additional services, local charges and contingency charges, subject to monthly review and update.

At ZIM, we are committed ensuring compliance with the EU ETS while continuing to offer reliable and efficient shipping services. We appreciate your understanding and support as we work together to address the global challenge of climate change.

For details regarding specific agreements, other commodities, and other cargo types, such as reefer cargo, please approach our local office.

Sincerely,
The ZIM team

ZIM Integrated Shipping

(*) These rates are unaffected by, and do not affect, any tariff notified, published, or filed in accordance with local regulatory requirements. For trades subject to the US Shipping Act or the China Maritime Regulations, application is subject to the publication and effective date requirements of those statutes / regulations. Quotations or mitigation of published surcharges that vary from ZIM’s tariff shall not be binding unless included in a service contract or amendment that has been filed with the Federal Maritime Commission (“FMC”) or the Shanghai Shipping Exchange, as applicable.