The Royal Belgian Shipowners’ Association (KBRV) has published a study that investigates operational impacts on Carbon Intensity Indicator (CII) calculations, identifying the three variables with the greatest adverse impact on CII ratings.
The research, conducted by four master’s degree students from the Antwerp Management School (AMS) as part of their thesis project, included qualitative analysis and quantitative analysis using data from Belgian-controlled ships.
The three variables with the greatest adverse impact on CII ratings were found to be waiting time (time spent idling or waiting in ports or awaiting orders), number of ports of call, and the total nautical miles covered by the vessel.
The quantitative analysis confirmed the impact of these specific variables; however the researchers note that a deeper dive into different shipping segments revealed a complex interplay of factors affecting CII ratings, making it difficult to pinpoint the main adverse variables universally.
For example, container vessels are more strongly affected by the number of port calls, with an increased number of stops resulting in a worse CII rating. When comparing three Very Large Crude Carriers (VLCC) with similar distances travelled, waiting times, and number of port calls, differences in CII ratings still occurred, something the researchers suggest could be attributed to external factors such as adverse weather conditions.
For LPG carriers, there was a correlation between waiting days and CII ratings. Carriers that traded on routes with major port congestion, leading to extended waiting times, scored lower than a sister ship with identical design on less busy operating routes.
“These findings underscore the multifaceted nature of CII ratings. If the IMO aims to maintain the CII as a meaningful measure to incentivise shipping’s decarbonisation, a thorough review of the formula is necessary, taking into account the various factors beyond the control of both shipowners and charterers that influence the CII ratings. At a higher level, the scope and goal of the CII within the basket of measures needs to be reassessed as well,” the Royal Belgian Shipowners’ Association notes.
“Shipping is the most efficient way of transporting goods, emitting the lowest GHG per ton of transported cargo. Addressing the carbon efficiency of the sector requires the effort of every stakeholder involved, from shipowners and charterers to port authorities and customers. Placing the responsibility for a ship’s efficiency solely on the shipowner does not accurately address the complexities and other influencing factors that exist.”
The study, Evaluating the Carbon Intensity Indicator: Challenges and Recommendations for Improvements, can be downloaded here.
