South Korea’s shipping major HMM said that 99% of its owned vessels are well-placed to keep their voyage under the Carbon Intensity Indicator (CII) regulation.
The outcome resulted from the verification of ‘KR GEARs’, a Greenhouse Gas (GHG) Emission Authentic Reporting system launched by the Korean Register (KR).
KR GEARs features greenhouse gas online data management, including a real-time CII monitor, CII simulator, and ETS calculator. This platform enables the CII rating to be derived and managed in real time.
The results showed that 99% of HMM’s 67 owned vessels, except for one bulk ship, received a rating from A to D, which is currently allowed for vessel operation.
The one bulk ship under the E rating is expected to improve its CII rating by adjusting ship speed and using low-carbon biofuel. HMM’s CII rating has been primarily led by an 11.1% reduction in port dwell time for its containerships. The efforts on slow-steaming and installing more efficient propellers have also contributed to enhancing energy efficiency.
In addition, HMM will expand the use of premium anti-fouling paints to decrease ship resistance and will continue to promote alternative clean fuels.
“Responding to climate issues and improving environmental capabilities are key to success for a sustainable future. We will be dedicated to moving faster and better preparing for stricter environmental regulations,” an HMM official said.
Earlier this year, HMM announced that it has cut its carbon emissions by half over the past decade.
The shipping company’s data shows that the CO2 emissions generated when transporting 1 TEU of container for 1 km decreased from 68.7g in 2010 to 29.05g in 2021, representing a reduction of 57.7% over the last decade.
The company ascribed the result to a more than two-fold increase in fleet capacity, from 337,407 TEU to 755,209 TEU, in the same period.
The CII is a measure targeting a ship’s energy efficiency implemented by the International Maritime Organization (IMO), covering vessels above 5,000 gross tonnage. It is calculated as CO2 emitted per unit cargo volume (1 ton) and nautical mile based on transportation records over the previous year and fuel consumption. CII is rated A, B, C, D, or E (where A is the best).
The rating indicates a major superior, minor superior, moderate, minor inferior, or inferior performance level. A ship rated D for three consecutive years, or E, is required to submit a corrective action plan to show how the required index (C or above) would be achieved.
The IMO plans to apply a CII rating from 2024 based on the performance of vessel operation in 2023.
That being said, the regulation has received a lot of criticism amid fears that the methodology used might result in unintended consequences and penalization.
Namely, a vessel’s rating will highly depend on how a ship is traded, which is largely dictated by a ship’s charterer. Factors that can also impact these are operational realities, like port congestion or port infrastructure, another issue that is outside of ship owners’ control. Ultimately, ship owners would be ‘stuck’ with a poor rating of the ship.
As such numerous shipowners have called for the revision of the calculation methodology to address these concerns.