UK ETS
EU ETS
Freight Forwarding
UK ETS is live. Audit your surcharges and recover the overpayments.
Searoutes team
21 July 2026 · Updated 21 August 2026
Based on Jocelyn Hansen's presentation to the BIFA member webinar.
Carriers price UK ETS on fleet averages with a safety buffer. Your vessels often emit less than the number you are billed. That gap between what you pay and what your voyages actually cause is recoverable, if you have the data to audit it.
The UK Emissions Trading Scheme extended to domestic maritime on 1 July 2026. Ships of 5,000 GT and above must now surrender one UK allowance (UKA) for every tonne of CO2e emitted on covered voyages. The 2025 average UKA price was £49 per tonne, and carriers pass the cost on via surcharges on your invoices.
At the recent BIFA member webinar, Jocelyn Hansen, VP Sales at Searoutes, walked members through what UK ETS covers, how it differs from EU ETS, and critically, how to audit the gap. Below is her seven-move playbook, reframed around a simple thesis: the gap is recoverable if you measure it.
Interchangeability: The schemes are separate markets with no automatic offset.
For a deeper dive on how EU ETS mechanics work today, see our Complete Guide to EU ETS.
The recoverable gap
Every UK ETS surcharge on your invoice reflects a calculation the carrier made about a vessel, typically using a fleet average multiplied by a safety buffer. That number is designed to protect the carrier's margin under the scheme, not to reflect the true emissions of the specific voyage that carried your box. Fleet averages hide vessel efficiency differences, engine types, route optimisations and service-level factors that push actual emissions down. The mechanic is identical across every ETS scheme, and the evidence is already telling. Take one voyage we modelled bottom-up: the Elly Maersk from Rotterdam to Singapore. The actual EU ETS cost, built from fuel consumption, transit days, emissions and EUA market price, lands at 43.30 USD per TEU. The carrier's published surcharge on that trade is 61 USD per TEU. On the same lane, published carrier EU ETS surcharges range 66 percent from lowest to highest for the exact same box. And zoomed out, our analysis on a BCO profile shipping 80,000 TEU a year on Europe to North America shows the recoverable gap can reach 2.3 million USD once vessel-specific emissions replace the carrier's fleet-average surcharge. UK ETS runs on a smaller scope but the mechanic is the same. Wherever your carriers surcharge you on fleet averages, there is a gap to measure. Key numbers:- 66% · spread between the highest and lowest published carrier EU ETS surcharges on one lane, for the exact same box.
- 43.30 USD vs 61 USD per TEU · actual EU ETS cost (Elly Maersk, Rotterdam to Singapore) vs the carrier's published surcharge on the same trade.
- Up to 2.3M USD · modelled recoverable gap on one BCO's Europe to North America EU ETS exposure. The same audit mechanic applies to UK ETS.
The seven moves at a glance
- Move 1: Map your UK exposure lane by lane.
- Move 2: Pin down what your carriers publish, then benchmark.
- Move 3: Check the scope, audit the amount, then pass through.
- Move 4: Brief your customers on UK ETS vs EU ETS.
- Move 5: Avoid double-charging on UK-EU legs.
- Move 6: Bring the gap into every quarterly carrier review.
- Move 7: Know your four recovery routes.
Watch the full session
Jocelyn Hansen on UK ETS at the BIFA member webinar, 30-minute on-demand replay. Watch on Searoutes.Move 1: Map your UK exposure
Before any conversation with carriers or customers, know your own numbers. Look at your lanes and flag:- Services on UK-domestic voyages (two UK ports).
- Services on GB to Northern Ireland legs.
- Vessels above the 5,000 GT threshold on any covered voyage.
Move 2: Pin down what your carriers publish
Every major carrier publishes their EU ETS surcharges by trade lane on their website. UK ETS surcharges now follow the same pattern. Get the published rate, the calculation method, and the effective date in writing before you sign or renew. A key detail Jocelyn highlighted: carriers in the same alliance, on the same service, sometimes charge different EU ETS surcharges per TEU. On Trans-Pacific services calling the UK before Europe, the published EU ETS rate should be significantly lower than the trade-lane average. It rarely is."Carriers on the same alliance are charging very different EU ETS charges for the exact same service." — Jocelyn Hansen, VP Sales at Searoutes, at the BIFA member webinar.Reading the carrier surcharges is the first step. Benchmarking them against actual voyage emissions is the second, and it is where the real leverage lies.
Move 3: Check the scope, audit the amount, then pass through
Before you audit the amount, check what the surcharge can legally contain. UK ETS covers three things: voyages between UK ports at 100 percent, GB to Northern Ireland legs at 50 percent, and in-port activities at UK ports at 100 percent, for every ship in scope regardless of where it sailed from. What it does not cover, yet, is the international voyage itself. A vessel arriving from Shanghai owes UK allowances for its time in port, hoteling, cargo operations and movements within the harbour, and nothing for the ocean leg. Read that back against your invoices. On a deep-sea service into Felixstowe or Southampton, the only legitimate UK ETS cost is the port call, a small fraction of any voyage-level figure. A UK ETS surcharge on an international service that is sized like a voyage charge is mostly buffer by construction. You do not even need vessel data to see it. The scope rules alone put a ceiling on what the line can contain. In the early months of any new scheme, surcharge tables get applied broadly first and corrected later. Do not wait for the correction. Check every UK ETS line against the scope, then audit the amount on the lines that survive. Full scheme guidance is on gov.uk. Once the line survives the scope check, the temptation is to pass the full carrier surcharge straight to your customer. Resist it. The published surcharge is a starting number, not the final one. Run the audit first:- What is the carrier billing per TEU on this service?
- What did the actual voyage emit, on a vessel-specific and route-specific basis?
- Where is the gap, and how large is it?
Move 4: Brief your customers
Explain the difference between UK ETS and EU ETS to your customers so they do not read a legitimate double surcharge as double-charging. On shipments touching both UK and EU ports, both surcharges may apply, and both are legitimate, but the amounts, allowances, and reconciliations are separate. Provide accurate emissions data alongside the surcharge on every invoice. That transparency does two things: it gives your customer the reporting-grade data they need for their own carbon accounting, and it makes your audit visible. When customers can see the number behind the surcharge, they trust it, and they stop pushing back on the line item. The two schemes compare as follows:Feature
EU ETS
UK ETS
Live since
2024, phased
1 July 2026
Allowance price
€70 to €80 per tCO2e
£49 per tCO2e (2025 average)
Vessel threshold
5,000 GT and above
5,000 GT and above
Maritime scope
50% of international voyages to and from the EU, 100% intra-EU and at-berth
100% of UK-domestic voyages and at-berth, 50% GB to Northern Ireland
Compliance calendar
Annual verified emissions reports
2026 emissions due 31 March 2027, first allowance surrender by 30 April 2028
Move 5: Avoid double-charging on UK-EU legs
On voyages that cross both UK and EU jurisdictions, EU ETS and UK ETS need to be reconciled carefully. The two schemes are not linked, and there is no automatic offset between UK allowances and EU allowances. If your carrier charges both without adjustment, you or your customer end up paying for the same emissions twice. Ask your carriers explicitly:- How do you reconcile UK ETS and EU ETS on multi-port voyages?
- Which allowances apply to which segment of the journey?
- How is the split calculated when a voyage calls both a UK and an EU port?
Move 6: Bring the gap into every quarterly carrier review
ETS is no longer a footnote in your carrier relationship. It deserves a dedicated section in every quarterly business review. Cover three things:- How carrier surcharges compare to actual voyage emissions on your specific services.
- Where you have been over-charged relative to what your voyages emit, quantified per TEU and per lane.
- What alternatives exist (including green fuel programs) as ETS prices rise.