Shipping Carbon Intensity Index: calculating what the future holds for your fleet

May 25, 2022 | Blog

Carbon Intensity Index in Shipping

Digitalization forms the core of any sustainability transition. Meeting 2023’s upcoming (Carbon Intensity Index) requirements and beyond requires data-driven calculations. Although adding more Excel spreadsheets to your inventory may be tempting, there’s a better way forward.

Solutions requiring time-consuming manual data management and complex internal workflows can slow the implementation of new solutions. At Opsealog, we think that the knowledge and tools to interpret data make all the difference for businesses.

What is Shipping Carbon Intensity Index?

The CII, as part of the global IMO Green House Gases Strategy, describes a ship’s carbon efficiency. It is measured in terms of grams of CO2 emitted per cargo-carrying capacity per nautical mile. The CII is an evolving operational indicator, unlike EEXI and EEDI, which are related to the ship’s design.

The amendments to MARPOL Annex VI relating to CII certification come into effect from 1 January 2023. Shipowners will complete their first CII reporting in 2023, with the first rating allocated in 2024. The requirements will cover ships of 5,000 gross tonnage and above. Vessels impacted are also required to report on fuel consumption as part of the IMO’s Data Collection System (DCS).

The rating thresholds will tighten each year through the application of annual reduction factors. This will require an 11% CO2 reduction by 2026 compared to the reference values of 2019.

The IMO has set guidelines to reduce the carbon intensity of international shipping by at least 40% by 2030, compared to 2008. The reference year for carbon intensity is 2019. Ships are allocated an annual operational carbon intensity rating: A, B, C, D, or E. It indicates a major superior, minor superior, moderate, minor inferior, or inferior performance level. This is to be recorded in the ship’s Ship Energy Efficiency Management Plan (SEEMP). Ships with a D rating for three consecutive years or E rating for one year are required to have an approved improvement action as part of their SEEMP.

Calculate your CII

Opsealog has developed an online CII calculator to help shipowners and operators gauge how their ships will be affected. The calculation of a CII rating is relatively easy for most of the 30,000 ships affected. Managing compliance and anticipating the impact on the ship operations is not easy, as you need to maintain clean data sets.

Flexibility is vital to ship environmental compliance

The capacity to effectively measure emissions and optimize fuel consumption is only the starting point of successful compliance. To maintain competitiveness, shipowners and operators must incorporate flexibility into their fleets and operations.

Maximum compliance will likely win preferential treatment from charterers and financiers. However, operating under the maximum compliance level can offer some flexibility. For example, taking advantage of favorable fuel prices or opting for different sailing speeds while still staying within compliance limits. Ship operators must have reliable data available, as well as the ability to make the necessary calculations, to evaluate their options.

Understanding every metric and collecting the correct fleet data

The CII is not the only valuable method of calculating operational efficiency. There has been debate about whether the CII should be based on the Energy Efficiency Operational Index (EEOI) rather than the Annual Efficiency Ratio (AER) selected by IMO. The AER is based on the vessel’s deadweight or gross tonnage. The EEOI, already in use in the European MRV system, is based on the actual weight of the cargo carried. It provides a more realistic operational efficiency assessment. However, it could lead to high variability in CII calculations.

Understanding the regulator’s requirements and what might give ship operators the most valuable insights for setting their own performance benchmarks is important. Setting and articulating benchmarks creates a process for continuous, informed improvement which can go beyond compliance and enable you to build stronger relationships with stakeholders, including investors, charterers, and ports.

Partnerships can help promote environmental solutions

For example, Opsealog recently became a partner of Green Marine Europe. Green Marine is the maritime industry’s leading voluntary environmental certification program. GM enables shipping companies to demonstrate and communicate their environmental commitments and gain international visibility for their efforts.

Green Marine helps ship owners reduce their environmental impact by providing a toolkit that includes tools and services, to benchmark their annual environmental performance.

Opsealog will help Green Marine’s participating companies in Europe and North America to improve their environmental performance through data integration and digital performance management technologies – using our unique combination of digital tools and human expertise to optimize the operations of shipping and offshore fleets, thereby increasing efficiency and reducing fuel consumption and emissions.

The 8 Green Marine performance Indicators to go beyond regulation compliance :

  • Aquatic invasive species
  • Greenhouse gas emissions
  • Oily discharge
  • Pollutant air emissions Nox
  • Pollutant air emissions Sox & PM
  • Underwater noise
  • Waste management
  • Ship recycling

Using maritime data analytics to minimize emissions

Structured and professional data management is essential to shipping’s sustainability transition. It gives companies the necessary visibility to achieve their sustainability ambitions while complying with existing and upcoming regulations.

We believe that trying to decarbonize without data is like an athlete training for the Olympics without knowing how fast they can run 100 meters. Just like athletes need to understand their current level and then identify potential improvements, effective data management is essential for companies to understand their starting point. Only then, do they have a clear and comprehensive picture of the progress scale needed to comply with incoming measures such as CII.

Today’s connectivity onboard is increasing. At the same time, it generates a formidable amount of data that requires processing and analysis to deliver efficiency. Opsealog’s onboard data collection service, Streamlog, simplifies daily reporting onboard vessels by digitizing information, mitigating errors, and facilitating data entry for personnel. Multiple data streams are then integrated into a single, unified platform, providing vessel operators with visualization and expert analysis of our Marinsights solution.

Opsealog offers efficiency as a service. Our solutions integrate millions of data points in real-time, processing and transforming them into insights and concrete action proposals. Applying such recommendations can help optimize fleet operations and reduce environmental impact.

Partnering with Opsealog means that you spend less time gathering and processing data. Therefore, you will spend more time determining what adds value to your operations.

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