A number of key charterers have objected to the new Carbon Intensity Indicator (CII) clause adopted by shipping association Bimco as part of the shipping industry's decarbonisation policy.
Oldendorff, Trafigura, Clearlake, Norden, Mercuria, Maersk, Hapag-Lloyd and Vitol are among those that have signed an open letter to Bimco stressing that the current clause places the obligation of compliance disproportionately on charterers.
"[The] approach removes the important incentive on owners to do their fair share for decarbonisation efforts and fails to recognise that owners are primarily responsible under the IMO regulations," the letter said. "The Bimco clause is imbalanced and unusable for the members of this group and will likely lead to a wide variety of homegrown CII clauses or — to owners' detriment — no clause being agreed."
The charterers note that the clause does not include the proposed provisions surrounding vessel performance and maintenance. Owners should remain "equally responsible" as charterers "for maintaining the vessel's operating efficiency, technical operations, navigation, insurance, crew, and all other related matters", the letter said.
Bimco responded to the criticism by saying it continues to seek feedback. "The regulation was adopted at the IMO despite attempts by the industry to point out the potential pitfalls of the CII formula," it said. "We have received constructive comments, both positive and negative, from many of our members."
The use of Bimco clauses is standard practice for the shipping industry. The association adopted the CII clause in November ahead of new regulations on carbon intensity in international shipping coming into force on 1 January 2023. The implementation of the CII and Energy Efficiency Existing Ship Index (EEXI) regulations could reduce average sailing speed by 2-3pc and cause capacity supply to fall by 1-2pc in 2023, according to Bimco.
Oldendorff's alternative
The IMO's new CII regulations will not help the environment and may in many cases actually lead to higher emissions, according to Oldendorff.
Shipowners and operators are already trying to increase fleet productivity by reducing empty legs so they can carry more cargo per year, the company said. Even though a ship consumes more fuel during laden voyages, the improved utilisation decreases the emissions per tonne carried, which is beneficial for the environment and should be the objective, it added.
But the likely consequence of the regulations will be that less efficient ships will trend toward longer voyages, emitting more, while more efficient ships stay on the shorter routes, Oldendorff said.
The firm suggests that the most efficient way to ensure long-term emission reductions is to focus on building the most modern eco ships. Any company wanting to reduce their carbon footprint should be looking at technical efficiency metrics such as EEXI and consumption values, Oldendorff said.
