AAL takes stance on EU Carbon Emissions trading rules

AAL Shipping has become the first heavy lift carrier to publish a carbon surcharge guidance to help customers prepare for the increased costs related to forthcoming European Union regulations on carbon emissions.

It made the announcement ahead of the extension of the EU Emissions Trading System (EU ETS) to cover the maritime industry, affecting shipping lanes between Europe and the rest of the world from January 1, 2024, with fixed charges for every ton of CO2 emitted.

With these additional costs directly attributed to multipurpose cargo operations, AAL has developed what it has termed an ‘EU ETS Surcharge’ (EUETSS), that will be applied to cargo loaded, or already onboard, an AAL operated vessel sailing either to or from a European port from 2024.

The EUETSS, which launched in August, will track the current EU Emissions Trading Price as well as average vessel consumption and cargo volume.

It will apply per Revenue Ton to Part Cargoes on AAL’s regular trading routes to and from the European continent and be quoted separately from normal freight rates.

For full and complete cargoes, AAL intends to calculate a surcharge based on estimated / actual voyage emissions.

The EU ETS is the world’s first carbon market - launched in 2005 and designed to help reduce greenhouse gas emissions cost effectively.

From January, the scheme will require all ship operators sailing to or from a European port to monitor and report their emissions, with purchase allowances surrendered as additional charges for every ton of CO2 emitted.

“As the industry continues towards greater sustainability and oversight, it is incumbent upon us to ensure that our customers and other supply chain partners remain ahead of the game and kept fully appraised of how changing regulations will impact their cargo movements. AAL will carefully monitor and share any adjustments on a quarterly basis,” said Felix Schoeller, AAL Director and Head of the carrier’s Sustainability Committee.

In other news, the company is expanding its presence in Taiwan, strengthening its scope of premium project heavy lift services with the appointment of Taiwan Wallem Transportation Co., as its commercial and port agency representative within the region.

Established in 1903, the Wallem Group opened its doors in Taipei in 1994 and represents the very best in port and commercial agency services across Asia, with a presence and local reputation second to none.

The Wallem Group is already delivering a strong performance for AAL in South Korea, after its appointment as the carrier’s exclusive agency representative there in 2022.

“Taiwan is an important market within Asia and to our operations with strong exports of steel, yachts and engineered industrial project components to key trading partners like Australia, US, and Europe – all markets which we serve with regular services,” said Christophe Grammare, MD, AAL.

“We have had a solid local presence there for two decades, serving the local multipurpose cargo shipping community with a wide range of flexible ocean transportation solutions.

“These include scheduled liner operations, regular trade lane sailings and tramp services that connect the region with its trading partners.

“Wallem has already proved itself to be a reliable partner for AAL and has a strong reputation with, and knowledge of, the local Taiwanese shipping community as well as the breakbulk and heavy lift market in Taiwan and our ambitions to comprehensively grow this market are very much aligned.

“We are looking forward to working together in this region to enhance our commercial presence and penetrate the local market further with our range of highly competitive premium multipurpose and project heavy lift cargo solutions.”