The EU is taking a phased-in approach to compliance, meaning that carriers and shippers might not immediately feel the full impact that the regulatory scheme will have on freight costs. But as coverage expands to encompass all vessels and emissions by 2028, Searoutes estimates that shippers could expect their freight costs to increase by as much as 5% in that same timeframe.

While some shippers have expressed concern about how much freight costs might increase under the EU ETS, they can pursue strategies to ensure carrier accountability and mitigate unnecessary costs. By using Searoutes’ API tools to compare current conditions against historical trends, shippers gain a better understanding of what costs to expect under the EU ETS.