Chartering the Future: How FuelEU Maritime Shapes Strategic Decisions for Swedish Tanker Shipowners: An in-depth study focusing on pooling, alternative fuels, financial implications and investment in new tonnage

Abstract

The European Union has in order to achieve the European sustainability goals put in place what is known as FuelEU Maritime, which falls under the larger regulatory package “Fit for 55”. The goal of FuelEU Maritime is to push shipowners to transition to less greenhouse gas intense fuels by restricting the amount of GHG allowed to be released per MJ from one ton of fuel. With the maximum GHG allowed to be emitted decreasing every five years. This study explores what kind of strategies the Swedish tanker segment will employee to reach compliance with EU’s regulatory obligations. This is done by interviewing shipowners located in the Gothenburg area and other stakeholders. Three main strategies have been identified. Pooling of vessels to continue to operate older more inefficient vessels with the help of newer vessels. The incorporation of dual-fuel engines in new tonnage to create a more flexible fleet that can utilise the ups and down of market prices between green fuels and fossil fuels. Future fuels are a crucial component in meeting the increasingly stringent environmental regulations in the maritime sector. Without a transition to more sustainable fuel alternatives, it will be difficult for shipowners to comply with upcoming legislation and operate in a long-term sustainable manner. The shipowners hope that the newly incurred cost of FuelEU Maritime will eventually fall upon their customers. As the regulation was put into practice in 2025, the outcomes remain uncertain. Despite the limitations of having only Swedish companies participate in the interview process and the early stage of implementation, this study represents an important first step in examining how FuelEU Maritime will affect and be managed by shipowners.