World News
Carnival Expects to Spend $15 Million on EU-ETS Compliance This Year
Cruise firm the Carnival Corporation expects to spend a total of $15 million on compliance with the European Union's emissions trading system this year.
The firm revealed the details of its expected compliance costs in its second-quarter results this week.
The company expects to consume a total of 3 million mt of bunker fuel at an average price of $675/mt this year, totalling $2.025 billion in fuel costs. Total expected fuel costs including EUA procurement for EU-ETS compliance come up to $2.04 billion, meaning the EUA cost alone is anticipated to total $15 million, or 0.7% of its total fuel and emissions bill for the year.
Carnival's exposure to EU-ETS costs is lower than for other leading shipping firms as it is less involved in voyages to and from Europe. For comparison, Maersk paid $44 million for EUAs in Q1, equivalent to about 2.4% of its total bunker and emissions costs, while Hapag-Lloyd paid EUR 22.3 million ($24.2 million), or 3.4% of the total.
Shipping joined the EU-ETS at the start of 2024, meaning all ships larger than 5,000 GT will need to purchase EUAs to cover the emissions for their voyages between EU ports. Ships on voyages between the EU and elsewhere in the world need EUAs for half the emissions generated.
The system is being phased in gradually, meaning ship owners pay 40% of the costs for 2024, 70% for 2025 and 100% from 2026 onwards.
The first deadline for EUAs to be surrendered -- for 2024's voyages -- is September 30, 2025.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 628.50 | 2.00 | 766.00 | 4.50 |
| Rotterdam | 575.50 | 2.00 | 769.00 | 3.00 |
| Houston | 603.50 | 6.00 | 784.50 | 3.50 |
| Fujairah | 631.50 | 1.00 | 858.50 | 5.50 |
| Global 20 Ports Average | 636.00 | 2.00 | 845.00 | 4.00 |
| Global 4 Ports Average | 610.00 | 2.50 | 794.50 | 4.00 |
| Global Average Bunker Price | 679.00 | 0.50 | 904.50 | 0.00 |
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