Policy & Compliance
Data suggests a redistribution of connectivity in Northern Europe, with UK ports gaining TEU-mile share since late 2023, while several northern EU ports show fl attening or declining trends Impacts of EU ETS on the container market
compensation from VOCCs when offered.
Question: Can a foreign-based NVOCC register with the FMC? Yes, foreign-based companies can also register with the FMC as a foreign-based NVOCC. This option does not require a qualifying individual or a US licence, but the company must: • Appoint a US agent for service of legal process, • Secure a $150,000 bond. The foreign-based NVOCC registration allows a company to: • Purchase transportation from a VOCC, licensed NVOCC, or FMC- registered foreign-based NVOCC, • Appear on the master bill of lading as shipper or consignee, • Re-sell transportation services to cargo owners, • Issue its own house bills of lading. One key basis of the FMC’s regulations is a familiar one to BIFA and its Members – ‘Know who you are doing business with’. Licensed and registered companies are responsible for understanding who they are working with when handling US shipments. To remain compliant, the NVOCC/freight forwarder should confirm: • Whether its client owns the cargo, or • Whether it is acting as an intermediary. If it is an intermediary, it is essential to determine whether the client holds an FMC licence; or is registered as a foreign-based NVOCC. Working with unlicensed or unregistered intermediaries can expose Members to costly regulatory consequences as the FMC can impose extra territorial penalties.
O ne matter that BIFA monitors in the environmental agenda is modal shift and diversion. The EU Emissions Trading System (EU ETS) for shipping is calculated based on a ‘cap and trade’ principle, where shipping companies must surrender EU Allowances (EUA) for CO 2 emissions, with 1 ton of CO 2 equivalent to 1 EUA. The calculation includes the type of fuel, total fuel consumption, distance and the speci fi c voyage segment in to or out of the EU. Of all the variables, the distance travelled is in certain ways the simplest; reduce the distance from the last port of loading before entering the EU and a considerable cost saving can be generated. On 20 February, CLECAT participated in a session where the European Sea Ports Organisation (ESPO) presented the first results of the EU ETS Observatory. The Observatory, developed by Puertos del Estado together with sector experts, aims to monitor the impact of the inclusion of maritime transport in the EU ETS on port activity and connectivity across the Union. Over recent years, concerns have been raised about the potential extra-territorial effects of maritime ETS and the risk of carbon leakage through the diversion of traffic to neighbouring non-EU hubs. The first findings of the Observatory provide structured data to assess these developments. By using the TEU-mile indicator, combining vessel capacity and sailing distance, the Observatory assesses the strategic weight of deepsea services and shifts in gateway positioning. The data suggests a redistribution of connectivity in Northern Europe, with UK ports gaining TEU- mile share since late 2023, while several northern EU ports show flattening or declining trends. Local BIFA Members in Felixstowe have commented on the increased transhipment traffic from the Far East unloading at the port, prior to being loaded on feeder vessels destined for the near Continent. Not only is the distance less but smaller vessels tend to emit less CO 2 . In the Eastern Mediterranean, a more structural shift is visible, with connectivity
moving from certain EU hubs towards non- EU ports such as Port Said, supported by significant infrastructure investments in neighbouring countries. While total volumes have not collapsed, routing patterns and sequencing of port calls are evolving, with potential long-term implications for the competitiveness of EU ports. During the discussion, EU Directorate- General for Climate Action (DG CLIMA) confirmed that maritime ETS will be reviewed in 2026 as part of the broader ETS Directive review. The Commission indicated that it will continue to monitor route reconfigurations and carbon leakage risks and welcomed the Observatory as a useful complement to its own assessment work. In Europe, two aspects deserve particular attention. First, clarity and transparency around surcharge structures and the way ETS-related costs are passed on in the supply chain are essential to ensure predictability for freight forwarders and their clients. BIFA frequently hears from Members concerned that their EU offices and customers are being overcharged by shipping lines. Providers of IT systems capable of calculating the correct amount that should have been charged support these concerns. Secondly, from an EU perspective, maintaining strong European connectivity and preventing a structural shift of traffic towards neighbouring non-EU hubs is critical to safeguarding both the resilience and long-term competitiveness of EU supply chains. BIFA Members have commented that transhipments via a UK port bring them little commercial benefit. BIFA would like to thank CLECAT for proving the information on which this article is based.
BIFA would like to thank Joe De Braga, chief executive officer, president, of Global Maritime Transportation Services, Inc (email: joe.debraga@globemar.com, www.globemar.com) for answering BIFA Members’ questions regarding FMC filing.
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