{"id":684632,"date":"2026-01-28T00:00:00","date_gmt":"2026-01-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/east-port-said-port-faces-a-new-challenge-with-europes-carbon-rules-for-maritime-but-green-bunkering-can-help\/"},"modified":"2026-01-28T00:00:00","modified_gmt":"2026-01-28T00:00:00","slug":"east-port-said-port-faces-a-new-challenge-with-europes-carbon-rules-for-maritime-but-green-bunkering-can-help","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/east-port-said-port-faces-a-new-challenge-with-europes-carbon-rules-for-maritime-but-green-bunkering-can-help\/","title":{"rendered":"East Port Said Port faces a new challenge with Europe\u2019s carbon rules for Maritime \u2014 but green bunkering can help"},"content":{"rendered":"

The EU is marching ahead with its decarbonization regulations <\/strong>for the shipping industry \u2014 and our region\u2019s transshipment flows may be impacted in the process.<\/strong> As of January 2026, the EU\u2019s Emissions Trading System (ETS)<\/a> on maritime effectively transitions to full enforcement, covering 100% of ships\u2019 emissions.<\/p>\n

The regulatory lay of the land: <\/strong>The ETS is effectively a carbon tax or a cap and trade system that requires shipping companies to purchase allowances for 100% of emissions generated on voyages within the EU and 50% on voyages to, or from, the bloc. This is different from the FuelEU Maritime, which is more of a mandate-driven set of rules that require cutting emissions by displacing dirtier fuels and raising energy efficiency. FuelEU Maritime<\/a> entered into force in 2025 with a 2% emission reduction target \u2014 which is set to hit 6%<\/a> in 2030 before rising gradually to reach 80% by 2050.<\/p>\n

How does this impact Egypt? <\/strong>To prevent losing volumes to non-EU transhipment hubs and evasive rerouting \u2014 where ships may fake port calls outside Europe to reset their tax clock \u2014 the EU set up a list<\/a> of high-risk neighboring container transhipment ports. Egypt\u2019s East Port Said, alongside Morocco\u2019s Tanger, are the only ports currently on that list. <\/p>\n

But why these ports specifically? <\/strong>Both ports met the outlined regulatory requirements of having over 65% of their traffic classified as transhipment and being located within 300 nautical miles of an EU port.<\/p>\n

What does this mean for East Port Said? <\/strong>If a ship stops in East Port Said, while en route to, or from, the EU, the shipping line would still be required to account for 50% of the larger long-haul voyage. This might make the ports less attractive for transhipment routes, especially if other ports in the neighborhood can offer a haven. <\/p>\n

DATA POINT- <\/strong>East Port Said port is critical to our transhipment flows<\/a>, with about 79% of Egypt\u2019s total transshipment trade going through it as of 2024. The port\u2019s container terminal \u2014 which currently boasts a 7 mn TEUs capacity after expansions \u2014 handled about 4 mn TEUs<\/a> in 2024.<\/p>\n

Why does this matter? Well, there will be gainers and losers.<\/strong> Ports in Saudi Arabia and the UAE could emerge as natural breaks in a voyage, allowing shipping lines to reset their tax liability before heading to, or from, the EU. One possibility would be the emergence of other Egypt-based container terminals, like Alexandria and Sokhna ports, as alternatives to East Port Said. In both scenarios, a blacklisted port\u2019s transhipment volume could take a hit if shipping lines decide to reroute. <\/p>\n

But there might be a silver lining, after all: <\/strong>These developments may also be good news for Egypt\u2019s green bunkering ambitions despite growing headwinds<\/a>. Starting this year, the ETS now requires shipping companies to account for nitrous and methane emissions, raising the cost of compliance for LNG-powered vessels that serve Europe. In that scenario, e-methanol, which Egypt already plans<\/a> to produce in East Port Said, could emerge as the biggest winner in the low-carbon fuels competition. <\/p>\n

(** Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n","protected":false},"excerpt":{"rendered":"

East Port Said and Morocco\u2019s Tanger are the only ports listed as high-risk neighboring container transhipment ports by the EU<\/p>\n","protected":false},"featured_media":684633,"menu_order":0,"template":"","categories":[7235],"tags":[72,7116,145,8835,7103],"class_list":["post-684632","hardhat","type-hardhat","status-publish","has-post-thumbnail","hentry","category-hardhat","tag-enterpriseam","tag-hardhat","tag-logistics","tag-maritime","tag-suez-canal","wpautop","entry"],"acf":{"mongo_id":"5b8bc31a-3c06-4db9-8888-d55d55f1497b","order":"13","is_powered_by":false,"story_type":"2","photo_url":"https:\/\/ent.news\/2025\/5\/970.jpg","photo_position":"above","homepage_title":"","full_issue_title":"East Port Said Port faces a new challenge with Europe\u2019s carbon rules for shipping","related_issue":[684609],"teaser":"East Port Said and Morocco\u2019s Tanger are the only ports listed as high-risk neighboring container transhipment ports by the EU"},"yoast_head":"\nEast Port Said Port faces a new challenge with Europe\u2019s carbon rules for Maritime \u2014 but green bunkering can help - 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