From January 1, 2025, voyages that include port calls in the European Union will need to comply with the new FuelEU Maritime regulation. This regulation aims to accelerate the adoption of renewable and low-carbon fuels in maritime transport, significantly reducing onboard GHG emissions within Europe.
FuelEU Maritime is part of the broader regulatory framework designed to help the maritime industry decarbonize. However, as these emissions regulations become increasingly complex and region-specific, the challenges for shipowners grow. The vast array of new regulations, tightening deadlines, and regional goals have made it harder for shipping companies to navigate compliance without clear, reliable data and insights. Furthermore, these regulations may not always account for the differences in trade patterns or vessel types, adding ambiguity that complicates decision-making.
For shipowners to understand the financial implications and broader commercial impacts of adhering to FuelEU Maritime, it’s critical to establish a clear market benchmark for emissions performance. This benchmark must come from a trusted source to ensure credibility and reliability. This is where the Baltic Exchange plays a pivotal role, leveraging its Emissions Calculators to offer vital insights.
The Role of Baltic Exchange in Navigating FuelEU Maritime Costs
“The latest emissions regulations are a positive step for the industry, but they come with a degree of ambiguity. What constitutes strong commercial performance is not always clear, particularly when the real financial impacts—such as penalties and fuel costs—are involved,” said Martin Crawford-Brunt, Emissions Lead at Baltic Exchange. “What’s needed now is a clearer understanding of the commercial implications and how they will affect shipowners’ operational decisions.”
To address this, Baltic Exchange has developed emissions calculators, including the FuelEU Maritime feature, to provide practical, market-driven benchmarks. This tool allows shipowners, operators, and charterers to understand the cost and potential penalties related to carbon emissions regulations, such as EU ETS and FuelEU Maritime, and factor these into their voyage costs.
Baltic Exchange’s FuelEU Calculator
Launched earlier this year, the Baltic Exchange Emissions Calculator now includes a specific FuelEU Maritime feature to help shipowners assess the financial consequences of the regulation. This tool enables operators and charterers to evaluate whether they are being charged fairly and provides essential data to calculate the cost of compliance.
The FuelEU calculator compares standard low-sulphur fuel options, such as VLSFO, with greener alternatives like LNG or methanol. By entering the vessel’s deadweight tonnage, type, speed, and fuel consumption, shipowners can quickly understand the potential financial penalties of operating on voyages with EU port calls. This information allows decision-makers to incorporate additional costs into freight costs or the target time charter rate.
The calculator currently includes fossil-based alternative fuels, as these are expected to be more competitively priced than green alternatives. Future updates will include bio-fuel blends for diesel and LNG, factoring in well-to-wake emissions.
For example, a 50,000 DWT MR tanker operating on the TC14 Baltic route (Houston–Amsterdam) with a VLSFO price of $600/tonne and MGO at $700/tonne will face approximately $483,000 in fuel costs and a FuelEU Maritime penalty of $29,400 in 2025. However, the tool also allows for comparison with alternative fuels, providing a quick view of the costs associated with LNG, methanol, or ammonia.
FuelEU Maritime Penalty and Fuel Costs for 50,000 DWT MR Tanker (TC14 Houston – Amsterdam)
| Fuel Type | FuelEU Maritime Penalty (2025) | Fuel Cost |
|---|---|---|
| VLSFO | $29,400 | $483,000 |
| LNG | -$151,000 | $487,000 |
| Methanol | $253,000 | $2,225,000 |
| Ammonia | $262,000 | $1,910,000 |
By providing these calculations, the Baltic Exchange Emissions Calculator helps shipowners quickly understand the cost implications of different fuels and the associated penalties, facilitating better-informed business decisions.
In another example, a 180,000 DWT Capesize vessel operating on the C2 Baltic route (Tubarao–Rotterdam round voyage) would face a FuelEU Maritime penalty of $66,600, with total fuel costs of $942,000. The calculator also shows the costs of alternative fuels, allowing for a thorough comparison.
FuelEU Maritime Penalty and Fuel Costs for 180,000 DWT Capesize (C2 Tubarao – Rotterdam Round Voyage)
| Fuel Type | FuelEU Maritime Penalty (2025) | Fuel Cost |
|---|---|---|
| VLSFO | $66,600 | $942,000 |
| LNG | -$327,000 | $973,000 |
| Methanol | $253,000 | $4,698,000 |
| Ammonia | $557,000 | $4,010,000 |
These examples illustrate how Baltic Exchange’s tool enables stakeholders to compare operating costs for various fuel types, including compliance with FuelEU Maritime. This comparison is crucial for understanding the financial implications of emissions regulations, helping to mitigate commercial and contractual risks.
Why This Matters for Shipowners
“As a shipowner, it’s essential to understand the full cost of compliance with the FuelEU Maritime regulation, and the penalties that could arise,” Crawford-Brunt added. “Having access to a reliable emissions calculator helps ensure that shipowners can factor these costs into their voyage planning, making the decision-making process more transparent and cost-effective.”
By offering this powerful tool, Baltic Exchange is helping the industry manage the evolving regulatory landscape and stay ahead of the curve on emissions compliance.
Click here to find out more about Baltic Exchange’s free emissions resources and access the FuelEU calculator.
Baltic Exchange in Brief
The Baltic Exchange represents a global community of shipping interests, including shipowners, ship charterers, and shipbrokers, who manage a significant portion of the world’s dry cargo and tanker fixtures, freight derivative trades, and the sale and purchase of merchant vessels.
Regulated by the UK’s Financial Conduct Authority (FCA) under the EU Benchmark Regulation, the Baltic Exchange is a trusted provider of data for the settlement of physical and derivative freight contracts, offering essential risk management tools for the shipping and transportation markets.
Founded in 1744 and headquartered in London, the Baltic Exchange has regional offices in Singapore, Shanghai, Athens, Stamford, and Houston. In 2016, the Exchange was acquired by Singapore Exchange (“SGX”).
- Daily benchmarks for dry, wet, container, and gas freight markets
- OPEX, S&P, ship recycling, and forward assessments
- Air cargo assessments
- Escrow and dispute resolution support
- Executive training via the Baltic Academy
- Networking opportunities for shipping professionals
Source Baltic Exchange