The IMO has decided on using the Carbon Intensity Indicator (CII) as one of the measures to drive decarbonisation of the shipping industry. Many shipping companies have started to analyse their fleet with regards to CII, to prepare for the first reporting year of 2023.
Recently, much has been discussed about possible flaws of this indicator. We at Ankeri are focusing on the positive effects of this indicator. We don’t believe that there is one silver bullet that will solve the issues at hand. Even though the indicator is far from being perfect, we believe it brings the industry to the right mindset, with positive effects for the environment. It surely will also have direct financial implications for shipping companies, as many banks may favour financing ships with better CII ratings due to their ESG commitments.
CII forces owners and charterers to collaborate
During the charter period, the CII regulation forces ship owners and charterers to collaborate even further on improved energy efficiency and reduced emissions. The ship owner is responsible for the CII reporting and ensuring corrective actions if the vessel receives D or E rating. The charterer’s operational regime decides on where the vessel will be trading and the vessel speed. As a result of this, the charterer can thus cause compliance problems for the owner, at least in theory.
The industry is still figuring out how to address this, with charter party agreements now including a section on CII and how to ensure compliance, although many are taking “will endeavour”or “to be decided” approaches (and with BIMCO still developing a CII clause for future charter contracts). What we know is that ship owners and charterers will need to start communicating more regularly on performance, such as on the CII rating itself and on measures (technological and operational) that may need to be taken to improve the situation, e.g. reducing intervals between hull cleanings or reducing the vessel speed. To do this, it is critical for owners and charterers to agree on what data will be used for CII calculations and have all the relevant information in place in a common platform.
Collaborating on CII using Ankeri
Ankeri helps ship owners and charterers to collaborate on improved performance. We are now rolling out features to help shipping companies with CII compliance.
Using Ankeri Performance in Ankeri’s Fleet & Chartering, shipping companies have an analytical overview of the CII rating and trends for the entire fleet or specific ships segmented by counter party, class or rating. The overview includes insights on ships and counterparties that need special focus, derived from information from other features in Fleet & Chartering, e.g. by employing information on contracts and ship events.
Ankeri Workspaces now allows ship owners and charters to collaborate on CII performance. Members in the workspace can access the performance data for the vessel in the same user interface, see the underlying data for the CII calculation and what actions have been taken to improve the CII rating.
Ankeri Aware is an enterprise social app designed to create an engaging experience on performance and sustainability for every shipping company employee.
Using Aware, the user can easily access the CII rating of every sea passage and the aggregated rating and trends for every vessel in the fleet.
Please feel free to reach out to use to get more information on how Ankeri can support you on your CII compliance journey.