11th July 2026 – 17th July 2026
LOCAL NEWS
No Local News reported.
INTERNATIONAL NEWS
1. NEW EU ETS PROPOSAL
On 17 July, the European Commission published its proposal to revise the EU Emissions Trading System (EU ETS), marking the start of the legislative process with the European Parliament and the Council. The revision aims to maintain the EU ETS as a key instrument for achieving climate objectives while strengthening industrial competitiveness and supporting the clean transition.
The revision of the EU ETS aims to support industry during the clean transition while ensuring that the EU remains on track to meet its climate targets. The proposal introduces a more gradual emissions reduction pathway by adjusting the pace at which the ETS cap declines, with a Linear Reduction Factor of 3.7% per year for 2031–2035 and 1.7% per year for 2036–2040. This approach gives companies more time to adapt while remaining consistent with the EU Climate Law. It also provides additional flexibility by allowing the use of up to 2% high-quality international carbon credits between 2036 and 2040, supporting emissions reduction projects outside the EU and helping sectors facing greater decarbonisation challenges.
Furthermore, a key element of the revised ETS is its stronger focus on investment in industrial decarbonisation. The Commission proposes establishing a €100 billion Industrial Decarbonisation Bank to support European industries in adopting cleaner technologies. The ETS Investment Booster would provide funding before 2030, while the Innovation Fund would continue supporting the development and commercial deployment of innovative clean technologies. Member States would also be required to allocate 50% of their ETS revenues to decarbonising ETS sectors, helping mobilise more than €100 billion in investment before 2030. The proposal also maintains the principle of solidarity through the Modernisation Fund, which will continue supporting lower-income Member States in upgrading energy systems, transforming industry, and advancing the clean energy transition.
Moreover, the proposal maintains support measures for industry while strengthening incentives for decarbonisation. Free allocation of emissions allowances will continue beyond 2030 but will become more closely linked to companies’ investments in clean technologies and emissions reductions in Europe.
Maritime Implications: Overall, the European Commission has not reopened the core architecture of ETS Maritime but instead proposes a series of targeted amendments aligning the ETS with the 2040 climate target, reducing risks of evasion, preparing for the future IMO global carbon pricing mechanism, providing direct financial support for maritime decarbonisation, and simplifying implementation.
The most strategically important developments are the creation of a dedicated ETS-funded maritime decarbonisation support mechanism and a commitment to review the EU ETS if the IMO adopts a global market-based measure, so as to avoid double payment without weakening the EU carbon price signal. Furthermore, the maritime ETS is strengthened through an extension to smaller vessels (400 to 5,000 gross tonnage) and the establishment of the Sustainable Maritime Alternative Propulsion (SMAP) support mechanism. SMAP will utilise 110 million allowances between 2028 and 2040 to fund the uptake of sustainable fuels and zero-emission propulsion technologies. To protect the Single Market, the proposal includes reinforced safeguards against evasion and simplifies compliance by merging reporting cycles for ETS and FuelEU Maritime. Current derogations for ice-class ships and outermost regions are extended to 2035, and a review clause is included to avoid double payments once a global IMO measure is adopted.
Kindly note that CUS is closely monitoring the matter and will provide further updates regarding its proposals and positions in due course.
In this context and for your reference, ECSA previously shared its position on the matter earlier this week, which can be found in the links below. In its latest communication, ECSA highlighted what works, what needs improvement, and what should be strengthened in the proposal.
What works:
- ETS revenues: ECSA welcomes the earmarking of ETS revenues at EU and national level. The allocation of 110 million allowances for shipping, worth around €10 billion, and the requirement for Member States to use 50% of ETS revenues for priority purposes, including shipping decarbonisation, are positive steps.
- Support for sustainable fuels: ECSA welcomes the focus on sustainable fuels, recognising that these fuels remain significantly more expensive than conventional fuels. Support measures are essential to encourage investment and accelerate their uptake.
- Reporting and offshore operators: The simplification of reporting requirements between the EU ETS and FuelEU Maritime is a positive step towards reducing administrative burdens. The proposal also helps maintain a level playing field for EU-based offshore operators.
What needs improvement:
- Clean technologies: ECSA considers the list of eligible technologies too limited and calls for broader support for energy efficiency measures and technologies that can deliver immediate emissions reductions across the existing fleet and enable the use of clean fuels.
- Derogations: ECSA calls for exemptions for islands, outermost regions, and ice-class vessels to be extended beyond 2035 and made more permanent to protect connectivity and ensure a fair transition.
- EU port competitiveness: Any measures supporting EU port competitiveness must preserve the integrity of the system and maintain a level playing field across all segments of shipping.
What must be strengthened:
- Use of ETS revenues: ECSA considers the allocation of 110 million allowances only a first step and calls for a greater share of the revenues generated by shipping to be reinvested in the sector’s decarbonisation.
- IMO process: While the proposal addresses the risk of double payments under a future IMO agreement, ECSA calls for a stronger review clause that would ensure EU measures are withdrawn once a global IMO agreement is adopted.
Related Article:
EUROPEAN COMMISSION 17/07 - Proposal for EU ETS
ECSA 15/07 - European Shipowners urge Commission to deliver on key EU ETS conditions
2. Strait of Hormuz Tensions Escalate as Commercial Shipping Movements Decline
The security situation in and around the Strait of Hormuz remained highly uncertain following renewed military escalation between the United States and Iran. The developments have significantly affected commercial shipping activity through one of the world’s most important maritime routes for energy transportation. Following renewed hostilities, Iran has reiterated that the Strait of Hormuz represents a critical national security interest and has warned that any further attacks against Iran would lead to a response affecting the wider Gulf region. At the same time, the United States has taken measures targeting Iranian maritime activity, including the reported reintroduction of a naval blockade directed at Iranian ports and shipping.
According to shipping data reported on 17 July 2026, only three commodity vessels transited the Strait of Hormuz during a 24-hour period, representing the lowest level of daily traffic since May. A significant number of vessels reportedly halted operations, remained in position or altered course due to increased security concerns following attacks on vessels and the wider regional escalation. The reduction in vessel movements highlights the concerns of shipowners and operators regarding safe navigation through the Strait, which remains a key route for global energy transportation. The uncertainty has resulted in increased operational challenges, with companies closely monitoring developments before deciding whether to proceed with planned transits.
The situation remains fluid, with continued military activity and heightened tensions between the parties involved. The maritime industry continues to monitor developments closely, as any prolonged disruption in the Strait of Hormuz could have significant implications for international shipping and energy supply chains.
Related Article:
Aljazeera 14/07 - US reimposes blockade on Iranian ports, launches more strikes
Attachment 1: Reuters 17/07 - Strait of Hormuz transits drop as US and Iran escalate attacks across Gulf
Attachment 2: Reuters 17/07 - Iran launches fresh attacks after sixth day of US strikes
Attachment 3: Reuters 17/07 - US, Iran each attack infrastructure in risky escalation
MonoNews 13/07 - Trump: US to impose a 20% fee on cargo transiting the Strait of Hormuz
NewMoney 15/07 - Hormuz: Energy flows are changing and freight rate volatility is surging
3. Hormuz: Saudi Arabia and the UAE are reshaping the energy map
Due to the escalating situation and the continued uncertainty surrounding navigation through the Strait of Hormuz, Gulf countries are increasingly seeking alternative solutions, including the development of new ports, pipelines and logistics routes to ensure the continuity of energy exports and trade.
In this context, the United Arab Emirates (UAE) is advancing plans to strengthen alternative energy and logistics routes through its eastern coast, particularly through the port of Fujairah, which provides direct access to the Gulf of Oman. By developing Fujairah as a strategic export and logistics hub, the UAE aims to enhance supply chain resilience and ensure the continuity of energy shipments and commercial activities in the event of future disruptions or restrictions affecting traffic through the Strait of Hormuz. As part of this strategy, DP World is reportedly planning to expand Fujairah’s port capacity, including the development of a new port and the expansion of existing container terminal facilities.
In parallel, the UAE is advancing pipeline projects that would increase crude oil export capacity through Fujairah, allowing shipments to reach international markets without passing through the Strait of Hormuz. These projects are intended to provide greater flexibility and reduce exposure to potential disruptions in one of the world’s most important energy corridors. The UAE is also investing in wider logistics infrastructure, including rail connections linking Fujairah with Dubai, Abu Dhabi and other regional economic centres. These developments form part of a broader effort to create an integrated transport network capable of supporting alternative trade flows and strengthening supply chain resilience.
However, these alternative routes do not eliminate all risks. The Strait of Hormuz remains a critical energy gateway, and replacing its capacity requires significant investment, time and coordination. In addition, alternative ports and infrastructure could also face security challenges in the event of a wider regional escalation. The expansion of routes outside Hormuz may reduce dependency on a single chokepoint, but it does not completely remove geopolitical risks affecting energy markets and maritime trade.
Overall, the UAE’s strategy reflects a long-term shift towards greater energy security and diversification. While the Strait of Hormuz will continue to play a central role in global energy transportation, the recent crisis has accelerated efforts to develop alternative routes that provide greater resilience against future disruptions.
Related Article:
NewMoney 16/07 - Hormuz: Saudi Arabia and the UAE are reshaping the energy map
MonoNews 16/07 - United Arab Emirates: Planning alternative port infrastructure on its eastern coast
4. BIMCO Biofuel Clause for Time Charter Parties 2026: What owners and charterers need to know
On 13 July 2026, BIMCO published an article explaining the key features of its Biofuel Clause for Time Charter Parties 2026. The clause has been developed to provide owners and charterers with a dedicated contractual framework governing the supply and consumption of biofuels during a time charter, reflecting the increasing use of biofuels as the shipping industry continues its transition towards decarbonisation.
According to BIMCO, traditional time charter parties are drafted on the assumption that vessels will use conventional marine fuels. However, biofuels differ from conventional fuels in several important respects, including their specifications, blend ratios, energy content and storage stability. Without specific contractual provisions, these differences may create uncertainty regarding acceptable fuel specifications, fuel quality verification, adjustments to speed and fuel consumption warranties, and the handling of biofuels that remain unused for extended periods.
The clause addresses these issues by establishing a clear contractual framework governing the use of biofuels under time charter parties. In particular, it provides for:
- The supply of biofuel that meets the agreed specifications, and the owners' consent for any non-compliant biofuel.
- Notice requirements, fuel quality, sampling, testing and the safe handling of biofuel.
- The adjustment of speed and consumption warranties to reflect the use of biofuel.
- The consumption of biofuel within an agreed period and the procedure where it remains on board beyond that period.
- The treatment of any biofuel remaining on board at the time of redelivery.
BIMCO identifies the adjustment of speed and fuel consumption warranties as one of the clause's most significant features. Since biofuels generally have a lower calorific value than conventional fuels, the clause provides two methods for adjusting contractual performance warranties: an agreed percentage adjustment or, where no percentage is agreed, a calculation based on the relative calorific values of the reference fuel and the biofuel supplied.
The article also highlights several matters that owners and charterers should consider before incorporating the clause into a charter party. Particular attention should be given to the maximum permitted biofuel blend ratio and ensuring that the vessel and its engines are capable of safely using the proposed fuel. Parties should also consider the effect of biofuels on contractual performance warranties, the vessel's technical readiness to handle biofuels, the allocation of tank cleaning costs, and the shorter storage life of many biofuels, which may require careful planning of consumption periods.
Related Article:
BIMCO 13/07 - Biofuel Clause for Time Charter Parties 2026: What owners and charterers need to know
5. Navigating alternative fuels: new industry guidelines for methanol Safety Management Systems
The Maritime Technologies Forum (MTF), together with BIMCO, has published new guidelines to assist companies in developing or updating their Safety Management Systems (SMS) for methanol-fuelled ships. The guidelines provide practical recommendations, aligned with the ISM Code, to help companies manage the specific safety risks associated with the use of methanol. They are intended to support both companies already operating methanol-fuelled vessels and those preparing for the increased use of alternative marine fuels.
The guidelines address the main safety risks associated with methanol, including its toxicity, low flashpoint, and the difficulty of detecting its vapour and flame. They emphasise the need for appropriate risk assessments, operational procedures and emergency response measures. The guidance also covers key elements of an SMS, including operational procedures, emergency preparedness, maintenance, training and competence, management of change, incident reporting, audits and continuous improvement. Particular emphasis is placed on ensuring that both shipboard and shore-based personnel receive appropriate training and are competent to carry out their responsibilities safely.
The guidelines can be accessed at the following link: Safety management systems for alternative fuels
Related Article:
6. IMO Council reaffirms commitment to protecting vital shipping lanes
On 13 July, the International Maritime Organization (IMO) announced the conclusion of the 137th session of its Council, reaffirming the importance of preserving navigational rights and freedoms in accordance with international law. The Council considered a number of agenda items during the session.
Among the key agenda items was the current situation in the Strait of Hormuz. The Council condemned the attacks on civilian commercial vessels, called for the de-escalation of tensions in the Middle East, and requested the Secretary-General, Arsenio Dominguez, to explore options to support the safe passage of maritime traffic. The Secretary-General was also asked to work with the littoral States, other Member States and the industry to promote the safe and uninterrupted navigation through the Strait. On this note, the Secretary-General emphasised that while recent events have focused international attention on the Strait of Hormuz, seafarers continue to face serious threats in other parts of the world. He called on all parties to conflicts to refrain from actions that endanger merchant shipping or the marine environment, to respect international law, and to ensure the protection of seafarers.
Furthermore, the Council considered the co-management of the Straits of Malacca and Singapore. It noted the information provided by Indonesia, Malaysia and Singapore on the Cooperative Mechanism, which brings together governments and industry to support the safety and security of navigation. The Council also invited Member States and other stakeholders to make financial or in-kind contributions to the Aids to Navigation Fund and the IMO Straits of Malacca and Singapore Trust Fund.
Other agenda items included the consideration of the IMO Annual Report and Financial Report. Moreover, the Council approved an updated Risk Management Policy and a new Strategic Fraud Risk Management Annex, strengthening the Organization's approach to risk management and its zero-tolerance policy on fraud and corruption. It also welcomed the successful completion of the first audit cycle of the IMO Member State Audit Scheme (IMSAS) and granted consultative status to a number of non-governmental organizations.
Related Article:
IMO 13/07 - IMO Council reaffirms commitment to protecting vital shipping lanes
IMO 13/07 - IMO condemns attacks on civilian merchant vessels in the Sea of Azov and the Black Sea
7. Paris MoU to revise RO performance methodology ahead of new EU PSC regime
The Paris MoU has recently announced the revision to the methodology used to calculate Recognized Organization (RO) performance. The new approach will be aligned more closely with the methodology used for assessing flag-State performance and will enter into force on 6 July 2027, together with the amended EU Port State Control (PSC) Directive.
Under the revised system, the calculation of RO performance will be based on the number of detentions linked to detainable deficiencies associated with statutory certificates issued or endorsed by the relevant RO. During a Port State Control inspection, the RO will be identified through the relevant statutory certificate recorded in the inspection database.
Where several detainable deficiencies from the same detention are related to the same RO, these deficiencies will be counted as one detention for the purpose of calculating RO performance.
The revised methodology introduces three RO performance categories:
- High Performance: the detention rate is better than the overall average.
- Medium Performance: the detention rate is equal to or worse than the overall average.
- Low Performance: the detention rate is at least twice the overall detention average.
ROs will no longer be ranked within each performance category. Instead, ROs will be listed alphabetically within their respective category.
The performance calculation will initially be based on one year of data. From 6 July 2028, the calculation will include data from 2026 and 2027, while from 6 July 2029 onwards, the calculation will be based on a three-year rolling period.
All ROs will be included in the performance list, regardless of the number of inspections carried out. For ROs with fewer than 30 inspections during the calculation period, additional criteria will apply when determining their performance category.
The revised RO Performance methodology replaces the previous approach and establishes a new system for assessing RO performance within the Paris MoU framework.
Related Articles:
ParisMOU - Information on new RO performance calculation
SAFETY4SEA 13/07 - Paris MoU to revise RO performance methodology ahead of new EU PSC regime
8. US TREASURY REPORT
The US Treasury Report for all actions reported is hereby attached.
Related Article:
Attachment 4: US Treasury Report for week 10/07/2026 – 17/07/2026
9. PIRACY REPORT
The Piracy Report for all actions reported is hereby attached.
Related Article:
Attachment 5: Worldwide Threat to Shipping (WTS) Report, for the period between 17/06/2026 – 15/07/2026
Nothing important to report from ILO, Local News and the House of Representatives.