Impacts of Red Sea Conflict on EU Shipping Tax: Concerns Raised by Malta Maritime Forum CEO

The CEO of the Malta Maritime Forum, Kevin J. Borg, expressed difficulty in assessing the impacts of the recently implemented EU shipping tax due to the ongoing situation in the Red Sea. He had previously warned that Malta could lose its role as a transhipment hub following the introduction of the EU Emission Trading Scheme, as major shipping carriers might seek other options through competing ports in North Africa. The term transhipment refers to the process of transferring cargo from one ship to another via a terminal.

Borg explained that the ongoing situation in the Red Sea has resulted in ships not being able to enter the Mediterranean Sea, with major shipping lines rerouting their ships to go around Africa. This has led to a nearly tripled freight cost, which he attributed more to the situation in the Red Sea than to the ETS. The Red Sea is a crucial area for global trade, with around 12% of global trade passing through the area, and several major global shipping companies have rerouted their ships from the Red Sea to avoid the conflict and keep their ships safe.

Borg also mentioned that talks with the EU Commission to amend the directives are currently planned but have not yet happened. He expressed concern about the impact of the ongoing situation in the Red Sea and its effects on global trade and shipping.

Source .