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Intercargo calls for review of CII at upcoming IMO MEPC 82
The International Association of Dry Cargo Shipowners (Intercargo) is the latest body to express disquiet about the CII formula particularly for smaller ship types.
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Credit: IMO
The association has called for a review of the IMO’s Carbon Intensity Indicator (CII) at the next meeting of the Marine Environment Protection Committee (MEPC 92) in London at the end of the month.
Representatives of various shipping sectors have previously said that despite a range of correction factors, the formula fails to account for factors which impact the productivity of ships but are beyond their control.
Intercargo has undertaken an extensive review of data from more than 5,600 bulk carriers and claims that there are several issues which adversely affect the CII ratings of their members’ ships. They include:
the impact of idle time. Intercargo claims that there is a clear correlation between increased idle time and poorer CII ratings, especially for smaller bulkers. But, it says, this idle time is often outside the control of ship operators;
perverse incentives. The current framework may encourage ship operators to run main engines unnecessarily – waiting at an anchorage for example – increasing overall emissions while improving their CII rating;
inconsistent efficiency indicators. Vessels with the lowest rating, E, often emit less carbon dioxide than ships in the A to D categories, according to the Association. This suggests that the CII does not accurately reflect a bulker’s true efficiency;
size disparities. Bulkers in the handysize, supramax and ultramax sectors often show a higher percentage of D and E ratings compared to larger vessels.
This last point mirrors the concern with feeder container ships. These types of vessel are generally deployed on shorter trades with more port calls and waiting times. Such operations impact the denominator of the CII equation – distance sailed multiplied by ship capacity.
Intercargo is proposing that the CII should incorporate further adjustments to reflect true ship efficiency, rather than the impact of factors outside the control of ship operators. It would like to see further incentives to reduce greenhouse gas emissions, rather than encouraging behaviour to improve ratings that may also increase emissions. And it would like to see a multi-phased approach to refining the index as more data becomes available.
Dimitris Monioudis, Vice-Chairman of the Association’s Technical Committee, stated: “Our proposals are grounded in a comprehensive examination of verified IMO Data Collection System data from 2022. This wasn't just a cursory review – it involved meticulous analysis of over 5,600 bulk carriers, conducted in collaboration with three major classification societies – ABS, Bureau Veritas, and DNV. This level of scrutiny provides a robust foundation for our recommendations and underscores the urgent need for a review of the current CII system.”
Intercargo Chairman, Dimitris Fafalios, said: “The current CII framework, while well-intentioned, may be leading us down a path which contradicts our ultimate goal of reducing overall emissions. We're seeing situations where ships might actually increase their total emissions to improve their CII rating. This is clearly not the outcome we're aiming for, so it is crucial that we refine this system to ensure it truly incentivises energy efficiency and emissions reduction across our industry.”
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