MSC revises EU ETS tariff after rerouting vessels from the Cape of Good Hope

Mediterranean Shipping Company (MSC) has revised its EU Emissions Trading System (EU ETS) surcharge rates to account for the deviation around Cape of Good Hope.

MSC has been directly impacted by Houthi attacks after two of its ships were attacked by the militia in the Red Sea. As a result, the Swiss shipping giant has rerouted most of its container vessels booked for the Suez Canal transit via the Cape of Good Hope.

The Cape of Good Hope route adds approximately 14-24 days to travel time between Asia and Europe compared to the Suez Canal route.

In light of this, MSC has significantly increased its ETS surcharge estimates on key shipping routes compared to the rates it proposed on 12 December.

• Far East to North Europe surcharge up by $7-11 per 20-foot-equivalent-unit (TEU), to $30-45/TEU
• Far East to Mediterranean surcharge up by $25-37/TEU, to $44-66/TEU
• Mediterranean to Far East surcharge up by $20-29/TEU, to $34-51/TEU
• Europe to Oceania & Indian Ocean Islands surcharge up by $15-25/TEU, to $66-100/TEU
MSC has confirmed that the estimated rates will be effective from 1 January 2024 and will apply to all existing and upcoming spot and long-term contracts.
Source: Engine by Konica Bhatt https://engine.online/news/general-news/msc-revises-eu-ets-tariff-after-rerouting-vessel-from-the-cape-55e4