Worldscale Adopts ICE’s Benchmark EUA Carbon Pricing for its Tanker Freight Rates
Worldscale Association has selected ICE's European Carbon Allowance (EUA) futures settlement price as the benchmark carbon price for calculating tanker freight rates in 2025. This decision comes as the maritime sector must now account for carbon emissions under the EU Emissions Trading System. Worldscale will use the average daily settlement price from October 1, 2023, to September 30, 2024, of ICE's EUA futures December 2024 contract for its 2025 tanker freight calculations. ICE's EUA futures and options market is currently the most liquid carbon market globally, with its environmental markets showing a 28% year-over-year increase in open interest.
L'Associazione Worldscale ha selezionato il prezzo di liquidazione dei futures sul Carbonio Europeo (EUA) di ICE come prezzo di riferimento per il calcolo delle tariffe di trasporto via nave nel 2025. Questa decisione arriva poiché il settore marittimo deve ora tener conto delle emissioni di carbonio nell'ambito del Sistema di Scambio di Emissioni dell'UE. Worldscale utilizzerà il prezzo medio di liquidazione giornaliero dal 1° ottobre 2023 al 30 settembre 2024 del contratto futures EUA di ICE con scadenza a dicembre 2024 per i suoi calcoli delle tariffe di trasporto nel 2025. Il mercato dei futures e delle opzioni EUA di ICE è attualmente il mercato del carbonio più liquido a livello globale, con i suoi mercati ambientali che mostrano un aumento del 28% su base annua negli interessi aperti.
La Asociación Worldscale ha seleccionado el precio de liquidación de los futuros de Permisos de Carbono Europeos (EUA) de ICE como el precio de referencia de carbono para calcular las tarifas de flete de petroleros en 2025. Esta decisión se produce porque el sector marítimo ahora debe tener en cuenta las emisiones de carbono bajo el Sistema de Comercio de Emisiones de la UE. Worldscale utilizará el precio medio diario de liquidación desde el 1 de octubre de 2023 hasta el 30 de septiembre de 2024 del contrato de futuros EUA de ICE con vencimiento en diciembre de 2024 para sus cálculos de tarifas de flete en 2025. El mercado de futuros y opciones EUA de ICE es actualmente el mercado de carbono más líquido a nivel mundial, con sus mercados ambientales mostrando un aumento del 28% interanual en el interés abierto.
월드스케일 협회는 ICE의 유럽 탄소 허용(EUA) 선물 정산 가격을 2025년 유조선 운임을 계산하기 위한 기준 탄소 가격으로 선택했습니다. 이번 결정은 해양 부문이 이제 EU 배출 거래 시스템에 따라 탄소 배출량을 고려해야 하는 상황에서 내려졌습니다. 월드스케일은 2023년 10월 1일부터 2024년 9월 30일까지 ICE의 2024년 12월 만기 EUA 선물 계약의 일일 평균 정산 가격을 2025년 유조선 운임 계산에 사용할 것입니다. ICE의 EUA 선물 및 옵션 시장은 현재 세계에서 가장 유동적인 탄소 시장으로, 환경 시장은 전년 동기 대비 28% 증가한 미결제 약정을 보이고 있습니다.
L'Association Worldscale a sélectionné le prix de règlement des contrats à terme sur les Permis de Carbone Européens (EUA) d'ICE comme prix de référence du carbone pour le calcul des tarifs de fret des tankers en 2025. Cette décision intervient alors que le secteur maritime doit désormais prendre en compte les émissions de carbone dans le cadre du Système d'Échange de Quotas de l'UE. Worldscale utilisera le prix moyen de règlement journalier du 1er octobre 2023 au 30 septembre 2024 du contrat à terme EUA d'ICE à échéance en décembre 2024 pour ses calculs de fret en 2025. Le marché des contrats à terme et des options EUA d'ICE est actuellement le marché du carbone le plus liquide au monde, avec ses marchés environnementaux affichant une augmentation de 28 % d'une année sur l'autre du nombre d'intérêts ouverts.
Die Worldscale Association hat den Abrechnungspreis der EUA-Futures von ICE als Benchmark-Preis für die Berechnung der Frachtsätze von Tankern im Jahr 2025 ausgewählt. Diese Entscheidung erfolgt, da der maritime Sektor nun die Kohlenstoffemissionen im Rahmen des EU-Emissionshandelssystems berücksichtigen muss. Worldscale wird den durchschnittlichen täglichen Abrechnungspreis vom 1. Oktober 2023 bis zum 30. September 2024 des EUA-Futures-Kontrakts von ICE mit Fälligkeit im Dezember 2024 für seine Berechnungen der Frachtsätze im Jahr 2025 verwenden. Der EUA-Futures- und Optionsmarkt von ICE ist derzeit der liquideste Kohlenstoffmarkt weltweit, wobei die Umweltmärkte einen Anstieg von 28 % im Jahresvergleich bei offenen Positionen zeigen.
- Record open interest of 181,152 contracts in wet freight futures and options (November 22, 2024)
- 28% year-over-year increase in open interest across ICE's environmental markets
- 20% increase in ICE's wider energy complex
- Strategic expansion into maritime sector carbon pricing
- None.
Insights
This development marks a significant shift in maritime freight pricing, integrating carbon costs into the fundamental pricing structure of global shipping. The selection of ICE's EUA futures as the benchmark demonstrates the growing importance of carbon pricing in international trade. With ICE's
The implementation timing, using the average daily settlement price from October 2023 to September 2024 for 2025 rates, provides a forward-looking mechanism that allows market participants to better anticipate and hedge their carbon exposure. The maritime sector's inclusion in the EU ETS creates a substantial new source of demand for carbon allowances, potentially supporting long-term price stability in the carbon market.
The incorporation of carbon pricing into Worldscale's tanker freight rates represents a fundamental transformation in shipping cost structures. This standardization will affect global trade flows and potentially reshape shipping routes as vessels optimize for carbon costs. The integration with ICE's liquid carbon market provides important price transparency and risk management tools for shipping companies adapting to new environmental regulations.
With ICE's wet freight futures hitting record open interest of 181,152 contracts, the market demonstrates strong demand for risk management tools in this evolving regulatory landscape. This development could accelerate the maritime industry's transition toward more carbon-efficient operations and vessel designs.
ICE’s EUA futures and options market is the most liquid carbon market in the world.
Worldscale’s tanker freight flat rates represent the cost of a standard ship making a round-trip voyage. The rates are comprised of expenses including bunker prices, port costs and exchange rates. Under the European Union’s Emission Trading System (EU ETS), for which ICE’s EUA futures market represents the benchmark price, the maritime sector now has to account for the carbon emissions of ships calling in and handling cargoes at EU ports.
“Worldscale needed a transparent price of carbon to be factored into freight rates and ICE European carbon, as the most liquid carbon market, is the natural choice,” said Ian McCarthy, Managing Director of Worldscale.
“Maritime transport is central to the global economy. ICE, as the leading energy derivatives market, has worked closely with the industry to provide a solution for how the underlying physical freight market, as well as related wet freight derivatives used to hedge freight risk, can comply with the new rules expanding the EU ETS to maritime,” said Jeff Barbuto, Global Head of Oil Markets at ICE.
Worldscale will use the average of the daily settlement price for the period October 1, 2023, to September 30, 2024, of ICE’s EUA futures December 2024 contract to calculate the carbon cost used in its 2025 tanker freight flat rates.
ICE offers customers a liquid wet freight futures and options market to manage the price risk associated with shipping oil. Wet freight is closely linked to crude and refined product markets, both of which ICE is a leader in offering derivatives in and are available to trade as part of ICE’s complex of over 800 oil related products including ICE Brent, the price barometer for
ICE’s wet freight futures and options hit a series of open interest records in November 2024 with record open interest of 181,152 contracts on November 22, 2024.
ICE’s EUA carbon benchmark is part of ICE’s extensive environmental markets which are the largest and most liquid in the world for customers to pay for their emissions obligations and manage the associated price risk. Open interest across ICE’s environmental markets is up
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Source: Intercontinental Exchange
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FAQ
What carbon pricing benchmark will Worldscale use for 2025 tanker freight rates?
How will Worldscale calculate the carbon cost for 2025 tanker freight rates using ICE's EUA futures?
What is ICE's recent performance in wet freight futures and options trading?
How has ICE's environmental markets performance changed year-over-year?
