The introduction of the EU Emissions Trading System (EU ETS) for shipping has added a new financial dimension to voyage planning. From 2024, both operators and charterers must account for CO₂ emissions when planning routes, making fuel efficiency not just about reducing consumption but also about controlling costs.
The challenge is integrating these new carbon costs into decision making without adding another layer of complexity. Understanding the financial impact of emissions across different route options requires access to emissions data, fuel pricing, and regulatory cost estimates in real time. Without the right tools, companies risk making decisions that appear cost effective but ultimately lead to higher emissions charges.
Alexey Enshin, senior product manager at XMAR, has been working on solutions to help shipping companies navigate this new reality.
Voyage planning has always been about balancing cost, time, and operational constraints. Now, carbon pricing adds another dimension. It is not just about how much fuel is burned but what that fuel costs in an emissions regulated environment. With EUA prices nearly doubling this year, emissions costs are now a major financial consideration for every voyage
…he says.
Carbon costs are changing the way shipping companies plan voyages
Shipping companies have always focused on optimizing routes based on fuel efficiency, weather conditions, and port costs. The introduction of carbon pricing adds a new layer of complexity, forcing both charterers and operators to rethink traditional route planning.
With EUA prices rising from 1.5 euros per tonne at the start of the year to 2.5 euros per tonne, choosing the optimal route has become an essential part of cost management. The upcoming inclusion of the Mediterranean Sea as a sulfur emissions control area (SECA) in just two weeks adds further pressure on shipping managers to make fast, well informed decisions.
A vessel traveling from Europe to Asia, for example, might previously have chosen a route based purely on fuel consumption and voyage time. Now, the cost of emissions must be factored in alongside toll fees, bunker prices, and weather conditions. A route through the Suez Canal, with its high transit fees, may still be preferable to a longer route via the Cape of Good Hope if it significantly reduces fuel burn and carbon emissions. Likewise, minimizing time spent in emissions control areas could reduce exposure to higher carbon pricing, making a slightly longer but more carbon efficient route the better financial choice.
Preparing for a future of global carbon pricing
The EU ETS is the first major regulatory framework to introduce carbon pricing for shipping, but it is unlikely to be the last. The International Maritime Organization and national governments are already discussing further carbon pricing mechanisms that could expand emissions trading beyond European waters.
For shipping companies, this means the cost of emissions will become an increasingly important factor in profitability and competitiveness. Companies that continue to treat emissions as a compliance issue rather than a financial one may find themselves at a disadvantage as carbon pricing expands.
Operators and charterers need to prepare for a future where emissions costs are part of every voyage calculation, not just a compliance requirement,
…says Enshin. “We see this shift happening now. That is why we built real time alternative route comparison into our voyage planner, giving shipping managers the ability to compare options with one click and adapt to changing emissions regulations faster.”
Beyond regulatory requirements, the ability to track emissions and understand costs has broader implications. Charterers and cargo owners are under increasing pressure to demonstrate lower emissions in their supply chains, which means they are looking for partners who can provide transparency and accountability on carbon output. Investors and financiers are also paying closer attention to emissions data, meaning companies with a clear carbon strategy may have an advantage when securing financing.
The shift toward carbon pricing in shipping is still in its early stages, but the direction is clear. Companies that start integrating emissions costs into their decision making today will be better prepared for the financial and regulatory realities of tomorrow. As the industry continues to adapt, platforms like XMAR are exploring how technology can support both operators and charterers by providing better visibility on emissions costs, improving data accuracy, and simplifying compliance with evolving regulations.
