€654,000 per week: the added cost on Malta’s consumers due to ETS and fuel price increases.

The EU’s Emissions Trading System (ETS) was already highly unfair to Malta as an island state, placing heavy pressure on the international trailer operators that sustain Malta’s connectivity. With the ongoing conflict in the Middle East, the combination of ETS surcharges and escalating fuel costs can no longer be absorbed by transport operators. These rising costs will inevitably be passed on to Maltese consumers.

The Association of Trailer and Truck Operators (ATTO) has warned that while the sector was still grappling with the ETS-related cost increases introduced earlier this year, the latest surge in bunker prices and transport fuel linked to geopolitical tensions has further intensified the burden on operators serving Malta.

Rising bunker prices are prompting shipping lines and freight operators to review the Bunker Adjustment Factor (BAF) applied to freight rates. One operator has already announced a surcharge adding €272 per trailer for a round trip between Malta and Genoa. Combined with the €734 per trailer ETS cost already in place, the cumulative first-quarter increase now amounts to approximately €1,006 per trailer.

ATTO implores EU to reconsider ETS as war-driven fuel surge intensifies ETS strain on Malta’s consumers

Multiplied by the 650 weekly trailers, this amounts to an extra €653,900 per week, which, together with the increased costs of fuel, will ultimately be borne by Malta’s consumers.

A second operator has yet to confirm whether it will introduce similar increases, though a decision is expected shortly.

Malta faces a structural disadvantage due to its geography. The Malta–Genoa route spans roughly 700 nautical miles each way (1,400 round trip), making it the longest route affected by these charges and resulting in the highest BAF increases in the region. Around 60% of trailers leaving Malta must return empty to Genoa. These trailers still incur the full surcharges, further amplifying costs.

The financial impact is already significant: one leading international trailer operator has registered an increase of €14,600 per week in fuel-related costs alone, before additional market adjustments.

“Malta’s geographic isolation means policies designed for continental transport routes disproportionately penalize island states like Malta. The ETS was already putting Maltese operators at a disadvantage. The current surge in bunker prices has made the situation unsustainable,” said ATTO Chairman Joseph Bugeja.

“These increases will ripple through the supply chain, affecting importers, shop owners, and ultimately Maltese consumers,” he added.

ATTO is calling on the European Commission and EU institutions to urgently reconsider the ETS’s application to Malta-bound maritime freight.

“We urge an immediate suspension of ETS obligations on Malta until a fair mechanism is developed that reflects the realities of island economies. Without corrective action, these escalating costs risk eroding Malta’s competitiveness, undermining the logistics sector, and placing an unsustainable burden on businesses and households.”