Carbon Intensity Indicator (CII) and Its Impact on the Global Shipping Industry

in Trends by

The latest report of the IPCC (Intergovernmental Panel on Climate Change) woke the world from blindly following the economic frenzy at the expense of the environment. IPCC forecasts read that the global temperature could rise as much as 10F over the next decade[1].

In this environmental disaster, the maritime industry happens to be a significant contributor. The 4th IMO GHG study states that ships worldwide emitted 1076 million tons of greenhouse gases in 2018, which accounts for nearly 3% of the global greenhouse emissions [2][3]. The IMO has been pulling its weight to put a damper on this unchecked emission growth and limit the damage.
IMO has come up with its ambitious goal of achieving a 40% reduction in CO2 emission from the 2008 level by 2030 and a massive 70% reduction by 2050 [4]. Pursuing its goal, IMO introduced mechanisms such as EEDI (Energy Efficiency Design Index ), EEXI (Efficiency Existing Ship Index) and now the latest is the Carbon Intensity Indicator (CII).

©Photo by Don Mingo on Unsplash

What exactly is the CII ?

In essence, CII measures how efficiently a ship transports its goods or passengers in terms of CO2 emitted. More precisely the CII is the grams of CO2 emitted per ton of cargo transported across every nautical mile. It was one of the regulations adopted by IMO in June 2021 and will come into force from 1st January 2023, covering all cargo, RO Pax, and cruise ships above 5000 GT [5].

The CII value of a vessel will be evaluated annually and compared to the reference CII values determined by IMO. The emission data of 2019 sets the reference line. Based upon this comparison, the performance of every ship will be rated on a scale of A to E, with A being the best. Achieving the CII rating equivalent to the reference line will land a ship squarely in the middle of the C rating, with better and poorer performances progressively leading to higher or lower ranks. For the start in 2023, the reference line will be set at 5% emission reduction concerning the 2019 level and then gradually move up to 11% reduction by 2027 [6][7].

How will CII impact the shipping industry?

With the adoption of guidelines and tools such as the CII, EEXI, SEEMP, etc., IMO is working on reducing the carbon footprint of the maritime industry. However, some industry experts believe that IMO might have been overzealous in reducing emissions. An analysis conducted by ABS using EU-MRV 2019 data suggests, that to 92% of the current container ship fleet, 86% of bulk carriers, 74% of tankers, 80% of gas carriers, and 59% of LNG carriers would require modification and operational changes of some kind to achieve A, B or C energy efficiency rating [8].

FleetMon in Research & Development: EmissionSEA – Extrapolation of emissions from ships

The ship owner’s struggle

From the above ABS data, it is obvious that a vast number of ships would require retrofitting to achieve favorable CII ratings. Securing finance for such retrofitting will be a challenge for small shipowners who often have older ships as ship finance is rapidly moving towards Environment, Sustainability, and Governance (ESG) goals. The Poseidon principles and the Sea Cargo Charters are essentially frameworks for integrating climate considerations in shipping’s financial decisions. Financing a poorly CII rated ship would increase the risk of the financer as a D-rated vessel today might slip to an E rating tomorrow when CII becomes stringent in coming years [9].

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FleetMon Maritime Gallery February 2022

in Community by

Welcome to our second edition for 2022 of the FleetMon Maritime Gallery. Each month, you’ll find a special section on our blog featuring the Best Maritime Photos in a certain category. You’ll not only get to view the most popular photos being voted by our community. We also present special shots which are less noted but in the same way extraordinary.

February is about the big topic offshore. We show you one of the largest fallpipe rock installation vessel, little but very strong tugs and impressive accommodation pontoons.

Enjoy the most beautiful offshore-themed shots taken by ship spotters from our community on FleetMon.com

To all our ship spotters out there: We truly appreciate your work. Keep it up, guys!

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Cape Horn – The Most Dangerous Passage in The World

in Maritime Knowledge by

Old sailor saying:

“Below the 40th parallel, there is no law. Below the 50th parallel, there is no God.”

Cape Horn, the southernmost headland of the Tierra del Fuego archipelago is located at 56 degrees south latitude, making a circumnavigation of Cape Horn particularly difficult. At Cape Horn, the Atlantic and Pacific oceans meet – and that’s what made the circumnavigation such a challenge. Extreme low-pressure systems swirl across the sea, creating the dreaded williwaw winds. These gusts come suddenly, frequently, and are unpredictable – and with bigger winds come bigger waves. To sail from the Atlantic to the Pacific, the only sea route was around Cape Horn. The Strait of Magellan was difficult to pass because of the wind and current conditions.

Hornos Island in FleetMon Explorer
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Adapt or Perish: How COVID Is Changing the Cruise Industry

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2020 should be a record year for the cruise industry with 32 million expected passengers, almost double the 2009 numbers of 17.8 million. But unfortunately, the world was hit by the novel coronavirus, and things went downhill, putting the cruise industry in an unprecedented crisis.

As per research: 54 reported infected ships and 2.592 ill crew members and passengers worldwide. 65 people died aboard cruise ships as matters spiraled out of control. Following this, ships were placed on stasis one by one, crewed by minimum possible staff. The now superfluous staff members were sent home on chartered planes, mass bookings, and even aboard cruise ships while the world struggled with convoluted and sometimes closed border crossings.

Photo of DIAMOND PRINCESS in Yokohama port by NEO-NEED on ©Wikimedia Commons

The cruise industry is remarkably resilient and has endured and overcome many challenges. The new coronavirus, however, has been different. Governments issued advisories against the cruise industry, with some experts calling ships viral incubators and that the industry needs to be shut down. Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases, issued a direct statement of avoiding cruises on an NBC telecast. There have been indicative signs of industry slowdown, from the prediction of industry experts to shipbreaking yards receiving an increasing number of cruise ships.

Building up of the storm

On March 4th, 2020, the German Federal Government stated an increased risk of infection aboard cruise ships. On March 14th, the CDC of the US issued a no sail order for 30 days. Ships were left fully staffed by the liners, with the intent of salvaging the remaining summer season. On April 9th, 2020, the CDC extended this order for 100 days, prompting drastic and quick revaluation by the shipping industries to survive, leading to loitering ships with minimal staff. The Foreign Commonwealth Office of Britain also recommended no traveling on cruises on July 9th, 2020.

Spreader events aboard the ships started to surface, such as the infamous DIAMOND PRINCESS. Crew unpreparedness led to the mingling of infected and healthy passengers, resulting in more than 700 crew and passengers testing positive and the death of 8. Another case, the RUBY PRINCESS, where 2.700 passengers were released without quarantine or tests, later resulted in more than 900 infected and 28 dead. Such events saturated the media, causing an effect similar to what the 9/11 attacks had on the airline industry; causing unpleasant associations with ships in the minds of people.

Figure 1: Average laytime in days of vessels in ports 2019 / 2020 and 2021 (quarterly).
Figure 2: Average laytime in days of vessels in ports 2019 / 2020 and 2021 (monthly).

National governments around the world put the safety of their citizens above foreign nationals. Ports refused to accept cruise ships. Australia banned cruise ships from arriving on March 15th, 2020, and on March 27th, the country directed all foreign vessels to leave the ports.

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FleetMon Maritime Gallery January 2022

in Community by

Welcome to our first edition for 2022 of the FleetMon Maritime Gallery. Each month, you’ll find a special section on our blog featuring the Best Maritime Photos in a certain category. You’ll not only get to view the most popular photos being voted by our community. We also present special shots which are less noted but in the same way extraordinary.

January is about the unpredictability of the weather. We show you ships struggling through foggy evenings, waiting for their cargo on cloudy nights, and vessels sailing under bright rainbows.

Enjoy the most beautiful weather-themed shots taken by ship spotters from our community on FleetMon.com

To all our ship spotters out there: We truly appreciate your work. Keep it up, guys!

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