Outlook 2024: Freight sector grapples with regulations and geopolitics

EU ETS extension is the latest change for the sector

Freight is a vital but often overlooked component of the oil and product markets. The sector will be subject to additional EU emissions regulation from the start of 2024, while continuing to grapple with the ongoing rerouting of the global energy trade. And with so many significant energy exporting nations under Western sanctions, the shipping industry is central in both the enforcement and attempted evasion of those rules. In January, the EU will extend its emissions trading system (EU ETS) to cover the CO₂ emitted by “all large ships”—specifically vessels with a gross tonnage of 5,000t or more, which includes all classes of tankers—“entering EU ports, regardless of the flag they fly”. The