What is your CII ambition?

 

The recent held MEPC 76 came out with some interesting decisions which will have an impact on the future operations of ships.

The EEXI regulations were as expected with the anticipated reduction rates on the different vessel types. The limitations on the CO2 reductions were a bit higher than expected and will probably influence the operational capability for some ship types. Since reducing CO2 emissions by Engine Power Limitation (EPL) to meet the EEXI requirements probably will be the most straight forward and efficient way to meet the regulations.

Once all the design considerations are handled, then the operational rating by the CII comes next. It was agreed that vessels were to reduce CO2 emissions by 11% by 2026 (compared to the 2019 level) on the operational level. The CII is defined as the Annual Efficiency Ratio (AER) and it is a quite simple performance parameter that can be derived from the ships IMO DCS reporting. The CII is by itself quite hopeless for fuel performance, since it not only relies on the fuel efficiency of the ship but also on how it is operated.

Further the CII is expected to come (to be decided in MEPC 77) with an exemption scheme where deductions of different operations for different ships will affect the “final” CII. So, you can anticipate some modifications to calculations after the next MEPC and it will probably not make thing less complicated.

With respect to compliance, it will now be necessary to look a bit further ahead when operating a ship. First, to avoid a bad rating of the ship in a reporting period and second to comply with the agreed rules on targeting and planning your CII. Which by the way will bring new life to your SEEMP, since this is where you have to document everything.

So, a fuel-efficient ship that is operated reasonably, will what you will be looking for and then you will be rated C or better. You will then comply with regulations and can operate your ship without any issues.

 

Since all vessels now are rated towards the CII scheme there will be some attention to the ratings from other stakeholders than owners and regulators. Some of the attention might be focused on:

• The good rated vessel will be commercial attractive and will benefit of better charter contracts.
• The shareholder awareness will be focused on the good ESG performance.
• Financial institutions will have higher confidence in owners operating ships with good ratings.
• The asset (ship) value will increase with good ESG performance.
• Ports and local authorities can use ratings to determine port fees and access to areas and ports.

It has always been beneficial for an owner to operate fuel efficient ships with respect to operational costs and now with the CII ratings and the attention towards this, it will be of even higher importance.

So, what you need is a good set of tools that includes ratings, operational profiles and an overview of the fuel efficiency for your fleet. Further a tool that you can use to predict the ratings for the voyages ahead.

Fortunately, we are here to help you. In VesOPS you will get all this in one software product. Use our advanced tools to keep control over your operations and to maintain a good fuel strategy for your fleet. Contact us at + 45 2939 2960 or info@vesops.dk to learn more – we are here to help you.