In issue 754 of Sea‑Intelligence Sunday Spotlight, Sea‑Intelligence highlights how the fully phased-in EU Emissions Trading System (ETS) will impact 2026 Asia–Europe container networks.
Under the ETS, carriers must surrender carbon allowances for 100 per cent of emissions between two EU ports and 50 per cent for voyages between an EU and a non‑EU port.
To prevent circumvention, major regional transhipment hubs such as Tangiers (Morocco) and Port Said (Egypt) are classified as non‑qualifying “last ports of call,” meaning a vessel sailing Singapore–Tangiers–Rotterdam, for example, is taxed on 50 per cent of the full journey.
Data shows carriers are mitigating ETS exposure by using nearby non‑EU ports to reset distance calculations, effectively reporting shorter chargeable sailing distances.
Mapping the port rotations of Asia–Europe services indicates that the newly announced 2026 networks reduce aggregate ETS‑chargeable sailing distance by 11 per cent compared with 2025 networks.
READ: Carriers reduce Chinese-built ships ahead of US tariffs
Figure 1 shows savings by alliance. While Mediterranean Shipping Company (MSC) has the largest absolute reduction compared with a Singapore–Algeciras baseline, its ETS distance has changed little over the past year, as has Premier Alliance.
The 11 per cent overall reduction is driven almost entirely by Gemini Cooperation and OCEAN Alliance, each achieving near 20 per cent additional reductions in reportable sailing distance versus 2025 networks.
This adjustment helps these alliances narrow MSC’s competitive carbon cost advantage.
Carriers maintain that network design is guided by customer demand and operational efficiency.
Nonetheless, the alignment of network changes with significant ETS reporting reductions highlights a clear benefit in shielding carriers from substantial carbon allowance costs.
In February, OCEAN Alliance shifted its 2026 network to target Southeast Asia’s “China +1” markets.
For more information:
Sea-Intelligence – https://www.sea-intelligence.com/
