The already expensive ferry tickets are set to become even pricier, with an increase of 10%-12% beginning May 1, 2025. One of the key reasons is that, from that date, the entire Mediterranean region will become a SECA (Sulfur Emission Control Area), meaning it must be free of sulfur emissions. As a result, ferries will be required to use fuel with a sulfur content of just 0.001%, which is significantly more expensive. And that’s not the only factor.

Under the “Fit for 55” climate measures package, approved in 2023 by the European Commission, several EU legislative frameworks impacting shipping were revised. The gradual extension of the European Union Emissions Trading System (EU-ETS) to maritime transport by 2026 and the anticipated challenges in complying with the new legislation on clean fuels (FuelEU Maritime Initiative) are expected to further increase the operating costs of the ferry industry. The new fuel will be more expensive than the conventional fuel currently used by ferries.

Additionally, about 2% of the ticket price hike will stem from salary increases for seafarers following the signing of the new Collective Labor Agreement, which includes a 5% wage increase.

The President of the Association of Passenger Shipping Companies, Dionysis Theodoratos, commented on ticket prices, stating, “Ferry tickets are expensive because, aside from the fuel costs (which account for 47% of a ship’s operating costs), there’s also the cost of wages, spare parts, repairs, and more.”

He also referred to the fuel adjustment clause implemented by the Ministry of Shipping, which has been approved by the Competition Commission. According to this clause, ticket prices are adjusted based on fluctuations in fuel costs.

“The cost of fuel accounts for 10%-12% of the total increase in ticket prices starting May 1, 2025,” he stated.

Leonidas Dimitriadis-Eugenides, president of the Eugenides Foundation and owner of the passenger-vehicle ferry Anemos of Aegean Sea Lines, emphasized the importance of the Price Observatory implemented by the Ministry, while stressing the need to support competitiveness. “It is not good for coastal shipping to be controlled by one or two operators,” he noted.

The burden on coastal shipping from the new environmental regulations will reach €320 million by 2031, based on current emissions allowance prices, according to a study by IOBE for SEEN.

“This cost will be passed on to passengers and vehicles,” he said. “We are talking about a definite increase in ferry ticket prices; otherwise, coastal shipping will not be able to operate.”

As Dionysis Theodoratos pointed out to Newmoney, “From May 1, 2025, the entire Mediterranean will become a SECA (Sulfur Emission Control Area), and everyone will have to switch to MGO (Marine Gasoil). This alone will increase fuel costs by €150 per ton for ferry companies. VLSFO (Very Low Sulfur Fuel Oil) with 0.50% sulfur content will be phased out, as from May 1, 2025, MGO with just 0.001% sulfur content will be mandatory.”

He added: “Today, the price of fuel oil is $600 per ton, and it will rise to $750. If we add to this the EU-ETS (European Union Emissions Trading System), which initially applies to Crete and the Adriatic, we are talking about a 40%-50% increase in fuel costs, caused by regulatory authorities imposing rules, not the market. No one mentions this. We want green shipping, but we’ll have to pay for it.”