The maritime and shipping industry – with more than 50,000 ships on the water – emitted 1.056bn t of CO2 in 2018, about 3pc of total global greenhouse gas (GHG) emissions. The recent Maritime Environment Protection Committee (MEPC) meeting in June 2021 laid down a concrete plan for minimising GHG emissions from ships by 50pc until 2050. According to the MEPC 76 meeting, vessels are required to calculate an Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) from 2023. What does this mean and what steps should be taken?

Understanding and calculating EEXI

Starting from 2023, each vessel above 400 Gt will require a one-off EEXI calculation to confirm that the vessel meets the energy efficiency design standards. An International Energy Efficiency (IEE) certificate will be awarded if the vessel meets those standards.

Take for instance, a basic 82,000 dwt Kamsarmax vessel with no energy saving devices installed:

Based on the above calculations, the vessel does not meet EEXI’s requirements, because the attained EEXI (5.00 gms/t-mile) is greater than the required EEXI (3.49 gms/t-mile). So the vessel will have to reduce its MCR to comply with the EEXI regulation, and to attain the IEE Qualification.

Based on the calculation above, the vessel can meet compliance standards if the main engine runs at 50.6pc MCR, where the attained EEXI matches the required EEXI. The vessel will be given the IEE certificate, if the main engine’s MCR continues to operate below 51pc and adjusts to the corresponding speed on the power speed curve (13.24 knots in this instance).

The formula to calculate EEXI was derived from the Energy Efficiency Design Index (EEDI). EEDI is applicable to new ships built on or after 1 January 2013. Vessels built on or after 2013, with a valid IEE are not required to calculate EEXI. Some of the variables used in the EEXI formula are listed below:

EEDI/EEXI reference line parameter values:

EEDI reduction factor:

Are vessels compliant once EEXI is achieved? What is CII?

The Carbon Intensity Indicator (CII) is a measure of how efficiently a ship transports goods or passengers – linking carbon emissions to vessel capacity and vessel movement. The ship is given an annual rating ranging from A to E. All vessels above 5,000 Gt are required to attain and document an annual operational CII, to be verified against the required annual operational CII, according to the MEPC 76.

The ship is then given an annual rating ranging from A to E, by comparing the attained annual CII of a ship with the direction and distance it deviates from the required CII (DD vector for short).

Taking the same basic 82,000 dwt Kamsarmax vessel used above:

A basic Kamsarmax with an annual rating of 0.97 is between DD vectors d2 (0.94) and d3 (1.06), and so receives a C rating. The annual rating would be an A for a bulk carrier, if it was at or lower than 0.86 (d1), and B if it was above superior boundary (0.86), but equal to or below the lower boundary (0.94). Vessels that receive A, B, or C ratings, will be issued a statement of compliance. Vessels that receive a D for three consecutive years, or an E rating, will be given a year to develop a corrective action plan that will enable the vessel to achieve at least a C rating. The Statement of Compliance to these vessels will not be issued unless the corrective action plan is reflected in a Ship Energy Efficiency Management Plan (SEEMP) and is verified by the administration or authorised organisations (vessel classification societies).

What are the various ways to implement SEEMP and make a vessel EEXI and CII compliant?

1. Proper maintenance of the vessel’s hull at dry dock.
2. Coating the vessel’s hull with good paint to increase hydrodynamic performance.
3. Improve the vessel’s steering configurations.
4. Have a more efficient aft-ship, propeller, and rudder arrangements.
5. Reduce energy consumption in main and auxiliary engines, auxiliary machineries, air conditioning, and other minor energy consumers.
6. Weather routing and choosing the best route for transportation of cargo.
7. Using efficient energy saving devices.
8. Slow steaming of the vessel.
9. Using of alternative fuels instead of high-sulphur fuel oil or very low-sulphur fuel oil (VLSFO).

As a note, SEEMP plans cannot be applied across a company or fleet-wide, as these plans are ship specific and have to be implemented according to the vessel type, cargoes carried, ship routes, and other relevant factors.

The maritime industry is not currently on track to meet the IMO ambition for a 50 percent cut in greenhouse gas emissions by 2050, even under favorable assumptions, according to a new study released by think tank Nordic West Office. The study suggests that this target could eventually be achieved on the industry’s current trajectory, but it is likely to take several more decades than desired.

The 80-page study drew on input from well-placed participants, including Hapag-Lloyd, Carnival and the World Ocean Council. Using three global decarbonization scenarios developed by Shell as a starting point, the authors examined in precise detail how the industry – in all its moving parts – might be expected to transition to green fuels over time. The answer suggests that substantially more action and more cooperation will be required under all three scenarios, including the most optimistic option.

“The main conclusion of our project was rather sad and it was that even in the best possible scenario, we will not reach the ambitions of the IMO . . . to cut greenhouse gas emissions by half by 2050,” said Dr. Risto Penttilä, head of Nordic West Office, at a panel discussion at the UN Ocean Conference. “There’s hope we can still meet . . . both Paris [Agreement] and IMO 2018, but it needs a lot of work.”

To change this trajectory and accelerate the process, the study’s primary suggestion is to tackle decarbonization comprehensively and collaboratively – drawing in regulators, shippers, shipowners, investors, fuel suppliers, ports and other stakeholders to prevent “gaps” in the industry-wide effort. Providing all actors with a clear “zero by 2050” goal at IMO – along with predictable market-based mechanisms for carbon pricing – could help kick-start that effort.

The biggest bottleneck identified in the study is the need to build a supply chain for green fuels, which will require massive investment. However, the study identified dozens of further “enablers” that will need to be developed, depending on the specific vessel and application – like JIT arrival, improved routing, wind-assisted propulsion and much more.

The industry’s progress will be influenced by the pace of global decarbonization overall, which will be driven in part by geopolitics. The most optimistic scenario in the study relies on an environment of international cooperation, openness and collaboration on climate solutions; the least optimistic of the three envisions a fragmented international landscape with reduced trade and cooperation, which “will not bring about a lot of clean developments by the end of the decade,” the authors predicted.

“The current geopolitical trend that puts focus on food and security concerns does not favor decarbonization and will not bring shipping anywhere close to its ambitions. Getting closer to the ambitions requires even stronger decarbonization efforts than those currently envisaged,” the authors cautioned.

Source: https://www.maritime-executive.com/article/study-shipping-is-set-to-miss-the-imo-2050-target

Vehicles carrier Lider Bulut (IMO 9198719) (Equasis and Marine Traffic name, Roro Feeder 1, AIS name report, Lider Bulut) developed a heavy starboard list and requested assistance when it was near Tuapse Port, Black Sea, Russia, during the evening of June 18. It was understood to have anchored on arrival from Samsun Turkey earlier in the day but to have developed a list – reportedly because of faulty ballasting – a few hours later. It heaved anchor and moved inshore. As of early June 19th the ship’s AIS was still on. The vessel was later confirmed by Russian Maritime Agency RosMoRechFlot to have been intentionally grounded, with water ingress. An SAR was underway and the ship was fenced off by several boom layers. There were 28 crew on board.

2000-built, Cyprus-flagged, 15,224 gt RoRo Feeder 1 is owned by Ugland Castor Car Carrier I AS care of Matrix ShipManagement Ltd of Limassol, Cyprus.

Two people on chemical/oil products tanker Nord Magic (IMO 9392793) which was anchored at Chittagong Anchorage, termed by the operator as “riding personnel”, died during the night of June 17th while checking empty cargo tank, according to local sources. They were taken to hospital but declared dead on arrival. The tanker arrived at Chittagong on June 15th after offloading cargo of soybean oil. There were 25 crew on board, mainly Indian nationals.

Norden said that “the two people who have very sadly passed away are not NSSM crew, they are riding personnel. The cause of the sad incident is still unknown.”

2009-built, Denmark-flagged, 29,266 gt Nord Magic is owned by Norden Asset Management AS of Hellerup, Denmark. It is managed by Norient Product Pool APS of Hellerup, Denmark. ISM manager is Norden Synergy Ship Management AS of Hellerup, Denmark. It is entered with North of England Club on behalf of Norden Asset Management AS. As of June 20th it was at anchor off Chittagong.

Fishing vessel Aleksandr Shalin (IMO 8832978) was in collision with fishing vessel Zaliv Petra (IMO 9130822) on June 16th in the Sea of Okhotsk, about 100nm southeast of Magadan. The Zaliv Petra was damaged at the hull on the starboard side aft. The vessel remained seaworthy and headed to the port of Busan for repairs. The Aleksandr Shalin suffered minor damage to the bow.

1990-built, Russia-flagged, 862 gt Aleksandr Shalin is owned and managed by Mag-Sea International of Magadan, Russia. As of June 19th the vessel was underway off Vladivostok, Russia.

1995-built, Russia-flagged, 748 gt Zaliv Petra is owned and managed by Sevrybflot LLC of Yuzhno-Sakhalinsk, Russia. As of June 18th it was underway off Busan, South Korea.

Passenger ship Aegean Odyssey (IMO 7225910) was asked to leave the port of Nice a few hours after its arrival on June 16th following complaints from residents about the fumes it was emitting. Following a decision taken by the harbour master’s office, the vessel, carrying 300 passengers, sailed within the hour, just before midnight. The decision by the harbour master’s office and with the backing of the municipal authorities was taken under port police law. Local residents had begun complaining around 19:00 local time following the release of smoke and the noise made by its engines. The maritime agent Medov France, based in Marseilles, in charge of the stopovers of the ship on behalf of a charter company, asked for explanations from the port authorities on this decision, indicating in particular that it harmed the “reputation” of the company. The ship arrived on June 17th in the port of Toulon.

1973-built, Panama-flagged, 12,094 gt Aegean Odyssey is owned by Aegean Odyssey Maritime Pan of Piraeus, Greece. It is managed by Aegean Experience Maritime Lib of Piraeus, Greece. It is entered with American Club on behalf of Aegean OdysseyMaritime Co SA. As of June 20th it was at Marseille Port.

Ports and Maritime Organization (PMO) lodged a complaint to the International Maritime Organization (IMO) over the seizure of its tanker in Greek waters

hief Executive of Iranian Ports and Maritime Organization (PMO) announced the strong protest of the country to the International Maritime Organization following the seizure of Iranian oil tanker by the Greek government.

While protesting against the illegal seizure of Iranian oil tanker by Greece which was done with the support of US government, Deputy Minister of Roads and Urban Development Ali Akbar Safaei said that the Greek government’s illegal action against Iranian ship is contrary to the goals and positions of the International Maritime Organization (IMO) as an international maritime authority.

Speaking with the Secretary-General of the IMO Kitack Lim, Safaei emphasized that this is not the first time that Iranian merchant ships and oil tankers have been directly or indirectly seized by the United States.

In recent years, a number of Iranian tankers have been seized by the United States and subsequently, Iranian Ports and Maritime Organization, on behalf of the Islamic Republic of Iran, lodged its complaint to the Legal Division of the International Maritime Organization (IMO), he continued.

Stating that the US actions are against the security in the seas as well as safe passage, the deputy roads minister stipulated, “Our ships and sailors have been under constant threat following harsh US sanctions. Therefore, we hope that IMO will pay special attention to this issue.”

As Iranian ship had requested emergency assistance from the Greek authorities, they, with the support of the United States, have seized the Iranian merchant and cargo ship and unloaded its cargo, he said, adding that such move is considered ‘an act of piracy’.

IMO Secretary-General, for his part, said that members of the International Maritime Organization are aware of Iran’s concern and protest against the recent events and “We are opposed to any discrimination or attack on maritime safety and security.”

Kitack Lim stated that he will bring up the issue in the upcoming meeting of IMO Assembly to find a solution.

International Maritime Organization (IMO) Secretary-General Kitack Lim has urged further financial support for a UN-coordinated operational plan to address the threat of a major oil spill from the FSO Safer, moored off Yemen, after a pledging event in The Hague saw donors pledging $33 million in new funding.

“In the face of an impending environmental disaster, we must do all we can to prevent it. We must act now,” Secretary-General Lim said. “The time is now. The risks are high. We must act to avert disaster.”

IMO has been supporting contingency planning efforts in the region to prepare for a possible spill from FSO SAFER and to limit the impacts should one occur. An oil spill from FSO Safer would be a humanitarian and environmental disaster, with huge economic impacts for the shipping and maritime industry throughout the region.

The plan to mitigate the risk by transferring the oil to a safe temporary vessel needs financial resources, Lim said.

There is now $40 million available for the operation, which includes previously committed funds. The decaying floating storage and offloading unit is moored off the coast of Yemen and holds around a million barrels of oil. It could break apart or explode at any time.

The pledging event, hosted by the Government of the Netherlands and the United Nations, marked the start in the effort to raise the $144 million that the full plan requires, including $80 million for the emergency operation to transfer the oil to a safe temporary vessel. Also critical to the plan’s success is the installation of a long-term replacement capacity.