Abstract
Container shipping is sailing into its second year of diverting around southern Africa,and with no sign of stability returning to the Red Sea-or the Middle East in general-carriers and their customers are facing up to another year of disruption and tight capacity.The longer voyages are raising carrier operating costs and absorbing all available capacity,as well as increasing greenhouse gas emissions even as regulatory pressure builds on carriers to reduce them.At the same time,shippers are having to factor longer transit times and large rate increases into their annual Asia-Europe contracts.While carriers can offset some operating costs by raising rate levels,reducing carbon emissions on voyages that are taking two weeks longer is becoming increasingly important as decarbonization regulations tighten.In 2025,compliance with Europe's emissions trading system(ETS)will see carriers being taxed on 70％of their carbon emissions,up from 40％this year.
NETL
NSTL
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