[dojomouse]

It’s adding a tax to the fuel type for the category, not the category as a whole. The tax will increase the commercial incentive for cleaner shipping which will reduce emissions.

The tax isn’t remotely large enough to result in freight migrating to air. And trucking within the eu is already subject to a carbon tax.

[jcampbell1]

Two effects here: First the substitution effect because the price gap narrows between other modes of transport which are less carbon efficient. Second, effect of switching to more efficient ocean cargo. The latter is quite small because fuel has been about 50% of the cost of ocean freight for a long time. The incentive for carbon efficiency has always existed for ocean freight.