Why are European ports concerned about the ETS review affecting transshipment?

Under the current ETS territorial scope, EU ports face higher carbon costs for transshipment activities compared with non-EU transshipment hubs. This creates a competitive disadvantage that may incentivize shipping lines to redirect transshipment operations to facilities outside the EU, particularly for intercontinental routes. The four signatory organizations argue this could shift significant cargo volume and associated investment away from European terminals.

What specific changes are the organizations requesting in the ETS Directive?

The organizations propose that Article 12.3.g of the revised ETS Directive be amended to include an incentive mechanism for transshipment that covers: journeys both originating and ending in the EU; all services making transshipment calls at European ports; and operates consistently across all EU facilities without discriminatory differences between ports.

What economic impacts could result from transshipment traffic shifting to non-EU ports?

According to the letter, a sustained shift of transshipment activity outside the EU could reduce demand for port workers and ancillary services related to terminal operations and vessel calls. This would also diminish revenue and returns on infrastructure investments made by port authorities, private operators, and shipping companies in decarbonization and digitalization technologies.

How does this proposal align with broader EU decarbonization objectives?

The organizations argue that their proposal complements EU decarbonization goals by ensuring that investments in green maritime infrastructure, technologies, and services remain economically viable at EU ports. They contend that the ETS review must account for these contributions to European supply chains to sustain the competitive environment necessary for continued green investment.

Which ports are most vulnerable to transshipment traffic loss?

While the article does not name specific ports at immediate risk, it references Algeciras as a concern area based on data from the State Ports Observatory. The vulnerability is greatest for European ports serving intercontinental maritime routes where shipping companies have flexibility in choosing transshipment hubs.

Trade Policy & Tariffs

High Impact

EU Ports Push for ETS Changes to Protect Transshipment Traffic

Nov 12, 2026

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The signal

Four major European maritime and port organizations (ESPO, FEPORT, WSC, and Assarmatori) have jointly petitioned EU co-legislators to amend the Emissions Trading System review to include protections for transshipment activity at European ports. The organizations warn that current ETS territorial scope may disadvantage EU ports compared with non-EU transshipment hubs, potentially driving shipping companies to relocate transshipment operations outside the Union.

The letter calls for a straightforward, non-discriminatory incentive mechanism covering all intercontinental maritime services calling at EU ports, with consistent rules across all EU facilities. Without such protections, stakeholders argue that transshipment traffic could shift to third countries, resulting in reduced port investment, lost employment, and diminished demand for ancillary services.

The initiative reflects growing concern about balancing decarbonization goals with port competitiveness in a globalized supply chain.

How this affects:

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

strategic

What if transshipment incentives are not adopted and 15 percent of EU transshipment shifts to non-EU hubs?

Simulate a scenario where the ETS review does not include transshipment protections, resulting in a 15 percent reduction in transshipment volume at major EU ports over 18 months. Model the cascading impact on port capacity utilization, terminal labor demand, ancillary service requirements, and the economic viability of recent green infrastructure investments. Calculate the shift in cargo routing patterns toward North African and Middle Eastern transshipment alternatives.

Run this scenario

Simulation Suggestion

strategic

What if the ETS incentive mechanism successfully retains 20 percent additional transshipment volume at EU ports?

Simulate the positive scenario where ETS amendments protect transshipment competitiveness, resulting in a 20 percent increase or stabilization of transshipment volume at EU ports over 24 months. Model the impact on terminal capacity requirements, labor demand for port workers and ancillary services, investment returns on green infrastructure, and revenue generation at port facilities. Calculate the supply chain network effect on European logistics hubs.

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Simulation Suggestion

this month

What if ETS incentive mechanism is implemented with different stringency across EU ports?

Simulate the operational and cost consequences if individual EU ports implement the transshipment incentive at different levels or with varying eligibility criteria. Model how inconsistent application across the EU could create traffic concentration at favored ports versus others, affect shipping line routing decisions, and create compliance complexity. Assess cost implications for shipping companies operating multiple EU ports.

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