Four of the leading organizations representing Europe’s maritime and port sector have signed a joint letter to the co-legislators of the European Union calling for changes to the review of the Emissions Trading System (EU ETS) to preserve transshipment traffic and the investments associated with this activity at EU ports.
The European Sea Ports Organisation (ESPO), the Federation of European Private Port Operators (FEPORT), the World Shipping Council (WSC) and the Italian shipowners’ association Assarmatori are calling for the forthcoming legislation to include an incentive mechanism for cargo transshipment at European ports, with the aim of reducing differences in treatment compared with facilities located outside the EU.
In the document, titled Retaining Transshipment Traffic and Investment in European Ports, the four organizations warn that the territorial scope of the ETS may put European ports that handle transshipment at a competitive disadvantage compared with logistics hubs in third countries, particularly on intercontinental maritime routes.
According to the signatories, these differences may influence shipping companies’ decisions about how to structure their services and which ports to use for transshipment operations. They believe that, without a corrective mechanism, some of this activity could shift from European terminals to facilities outside the EU, with potential consequences for investment, revenue and port employment.
The letter welcomes the European Commission’s proposal to introduce a specific measure for transshipment through Article 12.3.g of the revised ETS Directive, while calling for amendments to ensure its effective application to maritime networks connecting Europe with international markets.
Specifically, the organizations propose that the mechanism cover journeys both originating and ending in the European Union, taking into account how intercontinental maritime services operate. They also call for it to cover all services that make transshipment calls at European ports, rather than limiting its application to certain movements.
The third condition proposed is that the system be straightforward to apply and non-discriminatory, with the same rules for all European Union ports. The signatories aim to prevent differences in treatment between EU facilities and establish a common framework for transshipment operations.
The four organizations link this proposal to sustaining investment and maintaining employment at European ports and terminals. In their letter, they state that a sustained shift in traffic to transshipment hubs outside the EU could reduce demand for port workers and for ancillary services related to terminal operations and vessel calls.
They also note that port authorities, private operators and shipping companies are investing in infrastructure, technologies and services related to the decarbonization and digitalization of maritime transport. In their view, the ETS review must take these activities and their contribution to European supply chains into account.
The joint initiative adds to the ongoing debate on the review of European maritime emissions legislation. FEPORT had previously called for the mechanism based on cargo destination to be extended to outbound journeys from the European Union, arguing that limiting it to inbound journeys does not address all the ways transshipment traffic could shift to third countries.
