25/05/2022 - News

Calculating what the future holds for your fleet

International maritime organization's regulations

Digitalisation forms the core of any sustainability transition. Meeting 2023’s upcoming (Carbon Intensity Index) requirements, setting your own benchmarks, and planning your fleet operations in 2030 and beyond are all decisions that involve data-driven calculations. It may be tempting to simply add more Excel spreadsheets to your inventory, but there’s a better way forward.

Solutions requiring time-consuming manual data management and complex internal workflows can slow down the implementation of new solutions. At Opsealog, we believe that data is just an opportunity lost without the right expertise and the right tools to bring it to life and continually inform smart decisions.

Meeting CII requirements

Let’s take the International Maritime Organization’s (IMO) Carbon Intensity Index (CII) as a typical example of the importance of data in calculating future performance. The CII, as part of the global IMO Green House Gases Strategy, is a descriptor of how efficiently a ship transports goods or passengers measured in terms of grams of CO2 emitted per cargo-carrying capacity, per nautical mile. It is an evolving, operational indicator, rather than a one-off metric such as the EEXI or EEDI, which instead are related to the design of the ship.

The amendments to MARPOL Annex VI relating to CII certification come into effect from 1 January 2023. The first annual CII reporting will be completed in 2023, with the first rating allocated in 2024. The requirements will cover ships of 5,000 gross tonnage and above, the same ships that are already required to report on fuel oil consumption as part of the IMO’s Data Collection System (DCS).

The rating thresholds will become increasingly stringent through the application of annual reduction factors. This will lead to an annual tightening of ratings which will require an 11% CO2 reduction by 2026 compared to the reference values of 2019.

The reduction rates have been set to align with the IMO’s ambition of reducing the carbon intensity of international shipping by at least 40% by 2030, compared to 2008. The reference year for CII is 2019, as this is the earliest year with verified DCS data reported to the IMO. The IMO will review the effectiveness of its CII reduction factors by 2026 at the latest and will adopt further amendments if deemed necessary.

Ships are allocated an annual operational carbon intensity rating: A, B, C, D or E – indicating a major superior, minor superior, moderate, minor inferior, or inferior performance level. This is to be recorded in the ship’s Ship Energy Efficiency Management Plan (SEEMP). Ships with a D rating for three consecutive years or an E rating for one year are required to have an approved improvement action as part of their SEEMP.

Carbon Intensity Index planning

CII rating : the continuous improvement IMO indicator

Opsealog has developed an online CII calculator to help shipowners and operators gauge how their ships will be affected. The calculation of a CII rating is relatively easy for most of the 30,000 ships affected. What’s not easy, however, is maintaining clean data sets and integrating different data streams seamlessly into calculations, so that they remain accurate over time. Yet, this is exactly what is required to effectively manage compliance and anticipate impact on the ship operations.

IMO regulation details

Flexibility key to compliance

The capacity to effectively measure emissions and optimise fuel consumption is only the starting point of a successful compliance. To maintain their competitiveness, shipowners and operators must incorporate flexibility into their fleets and operations.

Maximum compliance will likely win preferential treatment from charterers and financiers, but operating under the maximum compliance level can offer some flexibility, for example in taking advantage of favourable fuel prices or opting for different sailing speeds for particular charters or voyage legs, while still staying within compliance limits. These options can be evaluated, but to do so ship operators must have precise and reliable data available, as well as the ability to make the necessary calculations.

Understanding every metric

The CII is not the only valuable method of calculating operational efficiency. There has been debate about whether the CII should be based on the Energy Efficiency Operational Index (EEOI) rather than the Annual Efficiency Ratio (AER) that has been selected by IMO. The AER is based on the vessel’s deadweight or gross tonnage. The EEOI, which is already in use in the European MRV system, is instead based on the actual weight of the cargo carried. This is perceived to provide a more realistic assessment of the operational efficiency but could lead to high variability in CII calculations.

It’s important to be clear, then, on what is required by regulators and what might give ship operators the most valuable insights for setting their own performance benchmarks. Setting and articulating benchmarks creates a process for continuous, informed improvement which can go beyond compliance and enable you to build stronger relationships with stakeholders, including investors, charterers and ports.

For example, Opsealog recently became a partner of Green Marine Europe. Green Marine is the maritime industry’s leading voluntary environmental certification program, and enables shipping companies to demonstrate and communicate their environmental commitments and gain international visibility for their efforts.

Green Marine helps ship operators address key environmental issues through 8 performance indicators, and to receive their certification, participants must benchmark their annual environmental performance through the program’s self-evaluation guides, have their results validated by an accredited external verifier and agree to publication of their individual results.

Opsealog will help Green Marine’s participating companies in Europe and North America to improve their environmental performance through data integration and digital performance management technologies – using our unique combination of digital tools and human expertise to optimise the operations of shipping and offshore fleets, thereby increasing efficiency and reducing fuel consumption and emissions.

The 8 Green Marine performance Indicators to go beyond regulation compliance :

  • Aquatic invasive species
  • Greenhouse gas emissions
  • Oily discharge
  • Pollutant air emissions Nox
  • Pollutant air emissions Sox & PM
  • Underwater noise
  • Waste management
  • Ship recycling

Adding value

Structured and professional data management is an essential pillar of shipping’s sustainability transition, giving companies the visibility that they need to achieve their sustainability ambitions – whether this means complying with existing and upcoming regulations, or reducing their emissions beyond what is requested by regulators.

At Opsealog, we believe that trying to decarbonise without data is like an athlete training for the Olympics, but with no idea of their current time for the 100-meter sprint. Just like athletes need to understand their current level and then identify where improvement must be made, effective data management is essential for companies to understand their starting point. Only then do they have a clear and comprehensive picture of the scale of progress that is needed to comply with incoming measures such as CII.

Today’s vessels are increasingly connected and generate a formidable amount of data that needs to be processed and analysed to deliver efficiency. Opsealog’s onboard data collection service, Streamlog, simplifies daily reporting onboard vessels by digitising information, mitigating errors, and facilitating data entry for personnel. Multiple data streams are then integrated into a single, unified platform, providing vessel operators with visualisation and expert analysis of our Marinsights solution.

Opsealog offers efficiency as a service. Our solutions integrate millions of data points in real-time, processing and transforming them into insights and concrete actions proposal that can be directly applied to help optimise fleet operations and reduce the impact on the environment.

As a ship operator, partnering with Opsealog means you spend less time gathering and processing data and more time taking action on what adds value to your operations.

To access Opsealog’s CII calculator, follow this link: https://ciicalculator.com/.