News
The risk of cargo diversion-as a result of the inclusion of shipping in the European Emissions Trading System (ETS) coming into force next January-is becoming a reality. It is likely to directly affect the competitiveness of European ports and all supply chains related to these ports.
The European Tugowners Association (ETA) supports the inclusion of shipping in the ETS but has already warned about the undesired effects that its implementation might cause in specific ports close to third states that are not covered by the European emissions legislation.
The ETS covers 100% of emissions from intra-European Economic Area (EEA) voyages (the EU member nations plus Norway, Iceland and Lichtenstein), 100% of emissions at berth in EEA ports and 50% of emissions from ships departing from an EEA port to a third-party one or arriving to an EEA terminal from a port outside its jurisdiction.
Thus, shipping companies could avoid costs derived from the ETS by changing ports of call, so the main parts of voyages are done between two non-EEA ports and reconfiguring the routes, making non-EEA terminals transshipment ports and thus, diverting much of the traffic that feeds the major European terminals.
This issue is addressed by the ETS transshipment clause, which was introduced in the legislation in order to limit the risks of carbon leakage. This clause allows the EU authorities to disregard a stop in the identified terminal as a port call for the purposes of the ETS Directive if the terminal is located less than 300 nautical miles from an EEA port and if the share of transshipped containers exceeds 65% of its entire traffic. In line with this, the ETA fully supports the inclusion of Tangier Med and East Port Said in the list of neighboring container transshipment ports as they match the clause´s conditions and otherwise, these ports could gain a competitive advantage that would have a negative impact on European terminals. Moreover, the ETA warns that there are already signs that indicate that this maritime traffic diversion is already taking place, not only at Tangier Med and East Port Said but also, in other ports neighboring the EEA.
The ETA fully supports the concerns expressed by the Federation of European Private Port Companies and Terminals (FEPORT) in a September press release. Furthermore, it strongly supports the call for the EC to constantly monitor the implementation of the ETS and its effects on cargo traffic, to act in order to impede the circumvention of the EU legislation and to stop carbon leakage and the loss of competitiveness of European terminals and ports, and of port services.
