VEHICLE LOGSITICS & FLEET MANAGEMENT
INDEEP WATER
Lena von Fritschen, Director of Market Intelligence at Transporeon, discusses geopolitical upheaval and legislative change in the European maritime transportation sector, why they are creating widespread disruption, and what shippers can do to prepare for the unexpected.
There’s no such thing as a typical week for shipping. Global routes form a delicate web, and disruption is to be expected. From inclement weather to economic headwinds, disruption rarely makes global headlines, as contingency planning by shippers and carriers usually shields consumers from its effects. Notable exceptions include the period following Covid-19 lockdowns, when the whole globe felt the impact of port congestion and skyrocketing shipping costs. Recent events appear similarly momentous, putting global shipping in a precarious position and highlighting endemic issues.
When lightning doesn’t just strike once Rather than a single lightning strike, current shipping disruption can be attributed to a barrage of unforeseen geopolitical and climatic developments. Currently, attacks by Houthi rebels are disrupting shipping in the Suez Canal, which usually accommodates roughly 12% of annual world trade and 30% of all global container traffic. Meanwhile, across the globe, an ongoing drought in the Panama Canal continues to restrict shipping capacity.
The result? Shippers are experiencing significant delays, and freight costs are skyrocketing again. For example, Transporeon data shows that container shipping prices from Asia to Europe spiked by 300% in January.
But geopolitical upheaval is just one of many sources of disruption facing the European maritime transportation sector, with two important legislative changes coming into force.
56 | TOMORROW’S FM Introducing the EU Emissions
Trading Scheme Designed to reduce shipping emissions by encouraging carriers to invest in sustainably-fuelled vessels, the EU Emission Trading Scheme (ETS) came into force at the start of 2024. Shipping companies are now obliged to buy permits for a portion of their emissions (gradually increasing to 100% by 2027) for all inbound, outbound and transhipment vessel movements.
LNG and other ‘sustainable’ fuels are exempt from EU ETS. However, these are currently used in less than 1% of maritime transportation, and it’s likely to take decades to build capacity. So, in the short term, most carriers will view EU ETS as a ‘cost of doing business’. An extra ‘ETS/ fuel surcharge’ will most likely be passed onto shippers.
The end of CBER In April, the EU will make another significant legislative change by discontinuing the 2009 Consortia Block Exemption Regulation (CBER), which allowed shipping companies to cooperate in consortia. CBER was introduced to improve service availability and market options for shippers, intended to drive down the price of maritime transportation. However, the pandemic exposed its flaws (limited oversight and information- sharing), which allowed larger carriers to consolidate and potentially exploit loopholes. This led to higher prices and
twitter.com/TomorrowsFM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66
