Intercargo says CII has “significant flaws” in current format

Dry cargo owners, operators and managers’ association Intercargo, has said that the IMO’s new Carbon Intensity Index (CII) calling for alternate mid-term approaches to the decarbonization of the shipping industry contained “significant flaws that need to be addressed in order to make CII fit for purpose.”

Intercargo said that it was calling for a broader industry-wide approach.

The association said that, during its recent semi-annual meetings, members expressed their “belief that CII cannot be used to achieve the desired decarbonization goals.” While saying it continues to fully support the ambition to achieve net zero emission shipping by 2050, Intercargo said that its members highlighted their belief that, under real life operating conditions, CII would not deliver “equitable, transparent, and non-distorting emissions’ reductions.”

Members were saying that the responsibility for decarbonization could not be placed solely on ship operators. Intercargo said that it would have to be a holistic solution dealt with by the entire shipping industry.

As has been pointed out elsewhere Intercargo noted that operating factors could impact significantly a vessel’s CII rating, along with steps that could be taken to adjust the outcomes artificially. Members pointed to factors outside the vessel’s control such as adverse weather, voyage distance, port waiting times, and port infrastructure. They also pointed to the inherent potential conflict between owners and charters who control the vessel’s operations. BIMCO, for example, called for charters to take responsibility for the CII rating based on their control of the vessel.

“Paradoxically, when considering voyage distances and port waiting times, vessels with longer travel distances can produce more emissions but have a better CII rating when compared to vessels traveling shorted distances and producing less emissions,” said Intercargo.

The trade association is calling for appropriate policies to ensure that green fuels as secured as well as the necessary infrastructure is available to support bunkering around the world.  “Unfortunately, these aspects are not sufficiently discussed and addressed despite their critical role,” Intercargo said.

Their position is that a combination of core elements of previous proposals was the best way forward. Intercargo said that it believed that a flat rate contribution per ton of CO2 emitted on a tank-to-wake basis should be combined with a mechanism where ships of 5,000 GT and above would make an annual contribution per ton of CO2.

Intercargo said that, under such a scheme, only ships that used eligible alternative fuels would receivea reward for CO2 emissions prevented.