United European Car Carriers (UECC) has successfully eliminated surcharges for its customers under FuelEU Maritime (FEUM) due to its proactive adoption of green fuels, according to the company's release. As a leading European sustainable shortsea RoRo carrier, UECC has significantly reduced its financial exposure to the newly implemented FEUM regulation by investing in and utilizing low-carbon biofuels.
While switching to biofuels is currently the most effective path to FEUM compliance, it typically increases fuel costs for shipping companies due to the higher price of biofuels compared to conventional fossil fuels. This price differential can lead to an "Energy Surcharge" levied on shippers, potentially ranging from 2-5%. However, UECC has avoided this surcharge by achieving significant carbon intensity reductions through the expanded use of biofuels across its fleet and the adoption of liquefied biomethane (LBM) on its multi-fuel LNG vessels.
"UECC will change absolutely nothing about its pricing structure in relation to FEUM," states Daniel Gent, Energy & Sustainability Manager at UECC. "We are already running a compliance surplus in relation to FEUM with our current energy mix, which is expected to extend into the early 2030s."
"As we are going 'above and beyond' in terms of our commitment to alternative fuels such as LBM and biofuel, we expect to have a significant compliance surplus under FEUM. With the investments we are planning in such fuels, UECC will never be in a position of needing to buy or borrow compliance units," concludes Gent.
UECC is a leading provider of sustainable shortsea RoRo transportation in Europe, operating a fleet of Pure Car and Truck Carriers in a pan-European service network. The company also offers its customers door-to-door supply chain solutions and operates several vehicle terminals in major European ports. UECC's headquarters are based in Oslo, Norway, with subsidiary companies and branch offices around Europe.