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Expansion of the Emissions Trading System in the European Union

The European Union (EU) has a major goal - to make Europe climate neutral by 2050. In order to achieve this, the EU Commission has created a comprehensive plan of measures called the "Green Deal". European transport modes - and thus shipping, are also included in this plan. According to the Green Deal, transport-related emissions are to be reduced by 90 percent by 2050. European maritime transport causes about 13 percent of the total greenhouse gas emissions in the transport sector.

Through various measures initiated by the EU and the International Maritime Organization, the industry has already been working for years to reduce the resulting emissions. In order to further reduce CO2 emissions, the EU has decided to extend the European Emissions Trading System (EU ETS) to maritime transport in 2024. So far, this has been an instrument for air traffic in Europe.

From 2024, operators of large ships arriving at EU ports will gradually have to buy emission allowances for greenhouse gas emissions. Accordingly, all voyages between EU ports and half of the route between an EU port and a third-country port will be subject to the Emissions Trading System (ETS). The emissions trading obligation will be introduced in stages. In 2024, ship operators will have to buy pollution allowances for 40 percent of their emissions volume. In 2025, this will then rise to 70 percent, and from 2026, all emissions will be subject to a charge. Among others, the majority of the revenue from the emission allowances is to be used to develop low-emission propulsion solutions in the shipping industry. Ocean carriers are currently preparing for implementation and have already announced, in some cases, that they will pass on costs to the industry.

If you are generally interested in the topic of sustainability in sea freight, DACHSER also offers Sustainable Maritime Fuel (SMF).

In case you have any questions on this topic or on the EU ETS, please get in touch with your contact person at the DACHSER branch responsible for you.

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Contact Vernice Chu Communications Manager Asia Pacific
vernice.chu@dachser.com

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Rail service market updates | December 2021

According to statistics, the number of freight trains running between China and Europe in 2020 has increased 15 times compared to 2015, reaching the number of more than 12,000 trains last year. In 2021, a further increase was recorded and the CRE (China Railway Express) experienced even greater demand in times of the pandemic due to a lack of sea and air freight capacity. However, the pandemic impact was also evident on Rail Service connections between China and Europe.

  • Current Situation and Review 2021

As experienced during the year, the situation remains challenging. The shortage of container equipment and increased slot restrictions, comparable to the sea freight market, have also become problematic for rail service. In addition, pandemic regulations as well as weather conditions have led to backlogs at border crossings. The rates are increased, but stable.

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The situation will remain challenging until Chinese New Year, but it is expected that the slot management setup will improve thereafter. Overall, the demand on capacity will continue to grow significantly in 2022.

DACHSER offers reliable multimodal rail services with an extensive coverage, connecting economic centers of major importance in China and Europe. Via the North Corridor, the so-called Trans-Siberian Route, DACHSER connects Hamburg, Warsaw, Vienna and Bratislava with the Chinese main terminal cities like Changchun, Shenyang, and Suzhou. To and from Duisburg, Hamburg, Neuss, Ludwigshafen, Vienna, Bratislava and Warsaw, DACHSER serves the West Corridor, also known as New Silk Road, to the Chinese hinterland areas of Xi'an, Chengdu, Chongqing and Zhengzhou.

Not only Block Trains but also Full Container Load (FCL) service is possible on this service, as well as Less-Than-Container-Load (LCL) which includes Consolidation Container Services (LCL-LCL) and Customer Consolidations (LCL-FCL).​​​​​​​

Should you require any other departure terminals and/or destinations like the ones mentioned above or some more detailed information on Rail Services, your DACHSER contact will be glad to assist.

 

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Air freight market update | December 2021

Global pandemic measures as well as continuing high demand have a strong impact on the air freight market. This is reflected in reduced cargo capacities due to restricted and partly suspended passenger flight connections, congested airports, handling facilities and employees.

  • Review 2021

The increase in air freight demand since the beginning of the year cannot be satisfied with the current air freight capacities. Though, a slight improvement is noticeable. 
 
All major airports worldwide have been congested resulting in huge backlog volumes and long waiting times. However, with secured premium capacities on its own weekly charter rotations between Asia, Europe and the US, as well as long-term freight allotments on regular airline services worldwide, DACHSER continued to be a reliable partner also in the second year of the pandemic.
 
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  • Current Situation

Manufacturing and trading industries remain affected by congested supply chains. Therefore, the demand for air freight capacity is still increasing, in addition to the regular Peak Season during Christmas and Chinese New Year.

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Due to the strict quarantine policy in Hong Kong, some airlines have cancelled their flights before Christmas. The resulting shortage of ground handling staff is causing significant service restrictions at Hong Kong Airport.

Export shipments can currently only be delivered to the terminal within 24 hours prior to estimated departure. Shipments without booking record will not be accepted. There is also an overload situation in import and delays have to be expected.

Hong Kong Airport had already announced in early December that cargo aircraft touching Omicron high-risk countries such as South Africa would not be allowed into Hong Kong until further notice. This leads to a shortage of cargo space and delays due to flight re-routings.

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At Frankfurt Airport, there are also still some delays in handling, especially at Frankfurt Cargo Service (FCS). Export handling has been delayed, and import handling has been subject to extended waiting times. The warehouses at all handling agents are full, especially at FCS.

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  • Outlook 2022

The tense situation will remain throughout the first half of 2022, easing slightly after Chinese New Year. On the other hand, air freight capacity will increase only gradually, as belly capacity will remain low.

Due to the unpredictable course of the pandemic and a still unstable ocean freight market, leaves plenty of scope for the development of the air freight market in 2022.

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DACHSER is extending its own premium air freight services between Hong Kong and Europe in 2022 and beyond. With this extension, 100 additional cargo tons on weekly 747-400 freighter flights will extend the capacity on this route.

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