CII is intended to provide a global structure for the reduction of emissions by incorporating the way ships are operated into the calculations for benchmarking. Vessels within the same "size bucket/ range" and ship type are compared against predetermined reference lines with ever increasing targets for improvement.
The reduction targets set by the IMO will be made increasingly stringent over time requiring a combination of technical and operational measures both technically and operationally to comply.
This includes the installation of ESD's (energy saving devices) or slowing down to burn less fuel. The vessels operating speed and route traded are often the dominating factors, therefore two identical ships traded differently may result in very different CII outcomes. CII is calculated annually based on the aggregate voyages from the previous calendar year as submitted to the IMO Data Collection Scheme (DCS) and the IMO definition of transport work (AER). This determines the vessels CII rating for the whole year ahead.
This regulation introduces significant complexity for vessels operated under time charters as the charterer may specify a higher speed thereby adversely affecting the owners CII rating. Those trades which require higher speeds, short distances or long port stays will result in adverse CII ratings.
The CII is based purely on the summer deadweight of the vessel, and the cargo uplift or ballast legs are not treated differently. This means that the CII regulation does not reward the efficiency of transport work done through triangulation.
Dry Bulk routes assumptions:
CII will be determined annually by dividing the total fuel consumed annually by the product of distance sailed multiplied with the ship DWT, using the IMO DCS reported data verified annually by class societies and other recognised organisations.
Each year from 2023 and on the reference line (target) is reduced by 2% reducing the resulting rating for each route.
The AER calculations form the basis of CII and are provided here per voyage for the routes as described by the Baltic Exchange. For bulk carriers routes in most cases these are not round voyage routes.
This CII rating given here per route therefore provides a useful indication of the contribution that the intended voyage would make towards the year end CII required for compliance with IMO regulations.
More efficient routes or slower ship speeds indicated by "A" would contribute towards reducing the overall rating at year end and the opposite is the case for routes rated "E"
This information on the relative differences between routes and speeds may be useful in assessing the relative merits and pricing related to selecting one voyage over the other.
Full and Eco speeds are as described in the Baltic standard ship descriptions.
Tanker routes assumptions:
CII will be determined annually by dividing the total fuel consumed annually by the product of distance sailed multiplied with the ship DWT, using the IMO DCS reported data verified annually by class societies and other recognised organisations.
Each year from 2023 and on the reference line (target) is reduced by 2% reducing the resulting rating for each route.
The AER calculations form the basis of CII and are provided here per voyage for the routes as described by the Baltic Exchange. For tankers is based on a round voyage between the described ports.
This CII rating given here per route therefore provides a useful indication of the contribution that the intended voyage would make towards the year end CII required for compliance with IMO regulations.
More efficient routes or slower ship speeds indicated by "A" would contribute towards reducing the overall rating at year end and the opposite is the case for routes rated "E"
This information on the relative differences between routes and speeds may be useful in assessing the relative merits and pricing related to selecting one voyage over the other.
Each year from 2023 and on the reference line (target) is reduced by 2% reducing the resulting rating for each route.
Fast speeds are ballast 12.5 knots and laden 13 knots. Slow speeds are 11 knots ballast and 11 knots laden.
Cargo heating and cargo discharge fuel consumption is excluded from the AER calculation as per IMO guidelines.