According to the analysis, for Very Large Crude Carriers (VLCC) traveling from Ras Tanura to Rotterdam, EU ETS costs are projected to be approximately $200,000 per voyage in the coming year. This amount represents 4% of the current freight cost, with projections indicating an increase to $0.5 million, or 10%, by 2026 when the regulation is fully phased in at 100%.
Despite the environmental and regulatory significance of these measures, not everyone in the industry is supportive. George Procopiou, one of Greece’s prominent shipowners, expressed strong criticism during an event in Cyprus back in October. Referring to the regulations as “bullshit” and “a complete waste of effort,” Procopiou argued that efforts should be focused on practical improvements.
“We always go to the shipyard, and we try to improve — through air lubrication and new engines, for example. Although our ships are 11 years old, we order a huge number of assets because the new models are 35% or 40% better in consumption. These are the little steps. The rest is just bullshit,” Procopiou stated.
As the industry grapples with the economic implications and varying perspectives on the new regulations, it is evident that the implementation of the EUETS in the shipping sector represents a crucial step towards reducing carbon emissions and promoting sustainability in maritime transportation.