‘Flawed’ CII rating complicates charterparty talks and trade designs￼
Owners and charterers are struggling to agree a consistent vessel carbon-intensity rating between the start and end of a time charter
The implementation of the CII could also alter trade patterns as designing and planning slick triangulation voyages may prove to be a tall order for tramp shipping
ONE trending topic during Singapore Maritime Week was how the Carbon Intensity Indicator is complicating charterparty negotiations and may have a more profound impact on shipping markets.
Calculated as grams of carbon dioxide emitted per dwt nautical mile on an annual basis, the operational efficiency measure gives ships a rating from A-E. Tonnage rated D for three consecutive years or E in one year, will be required to submit a “corrective action plan” to improve its performance.
Data collection started at the beginning of 2023 to make the first ratings available from next year. But concerns surrounding the imperfection of the rating system already abounds.
Negotiations on charter contracts, in particular long-term time charterers, are getting difficult, according to Gao Dehui, chief executive of SDTR Marine, which operates a fleet of 19 young kamsarmax dry bulkers.
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