To make matters worse? The International Chamber of Shipping proposes to increase taxes on ships!

Since the outbreak of the epidemic last year, the overall shipping rates have entered a continuous surge mode. For example, the shipping cost between China and the United States has now exceeded the 20,000 US dollar mark, an increase of 500% from a year ago, and sellers are complaining bitterly.

However, in this situation, some organizations still propose to increase taxes on ships and increase shipping fuel costs.

Recently, the International Chamber of Shipping ( ICS) said in a statement published on its website that it had submitted a plan called "Climate Fund" to the International Maritime Organization (IMO) last Friday, proposing a global carbon emissions tax on ships.

ICS proposed in this proposal that a mandatory tax be imposed on ships with a total global trade volume of more than 5,000 tons based on their carbon dioxide emissions. The specific tax rate has not yet been specified in the proposal. The collected funds will go into the IMO fund to help ports around the world deploy the refueling infrastructure needed to replace traditional fuels.

According to Reuters, about 90% of global trade is transported by sea, and global shipping accounts for nearly 3% of the world's carbon dioxide emissions. The industry is facing increasing pressure to clean up. The IMO has called for plans to reduce carbon emissions, but there are currently no viable alternatives to fossil fuels for large-scale shipping. Therefore, the industry is seeking government help to create a $5 billion fund as a starting point.

The idea of ​​ICS to impose a carbon tax on ships has previously been supported by the Baltic and International Maritime Council (BIMCO), the Cruise Lines International Association (CLIA) and the World Shipping Council (WSC).

In addition to raising funds for the development of clean fuels, levying a carbon tax on ships can also reduce the cost of using fossil fuels for ships and make fossil fuels less attractive after clean fuels are developed. Guy Platten, Secretary General of ICS, said: "What shipping needs is a truly global market-based measure that will narrow the price gap between zero-carbon fuels and traditional fuels."

An IMO spokesman said all proposals were welcome and would be discussed later this year, adding that the "proposal on market-based measures (MBMs) is in line with the IMO's original greenhouse gas strategy".

This is not the first time that a similar proposal has been made. In June of this year, the Decarbonization Research Fund proposed a motion to the IMO to impose a tax of US$2 per ton on organizations that purchase shipping fuel. This proposal was not passed by the IMO, but it will be further discussed at the Marine Environment Protection Committee meeting in November this year.

Although reducing carbon emissions is also an important thing, if carbon emissions taxes are really imposed on shipping ships, there is no doubt that the cost of shipping will increase again. Will shipping companies also raise prices to maintain profits? In any case, the increase in shipping costs is a lose-lose result for shipping companies and shippers.

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International Chamber of Shipping