SIMIC

The new rules will become mandatory on January 1, 2023, and are expected to drive older ships to the scrapyard.

Next year, many expect there will be an effective reduction in available capacity, offsetting newbuildings set to be delivered.

The specific rules require the ships to show the 'energy efficiency existing ship index' (EEXI) calculation on each vessel to grant them a carbon intensity indicator (CII).

The calculation factors in CO2 emissions per distance traveled versus cargo capacity expressed in deadweight tonnes (DWT).

Although an energy efficiency design index (EEDI) has been required for newbuilds for some time, the new regulations will be new to existing vessels.

It has attracted criticism from various quarters, some claiming them to be too strict and others as too lenient.

Maersk declared the CII scheme's highest bracket still allows vessels to emit carbon, leaving no regulatory incentive for shipowners to go carbon-neutral.

"It would be far better to have an operational indicator that would reward more-productive ships, including based on cargo carried rather than on a theoretical value that may not correlate to transport work performed," said Maersk.

Said GMS technical director Laxman Kumar: "Serious thought needs to be given as to the rate at which older vessels are phased out of the fleet, and its true benefit to emission savings, to prevent EEXI and CII leading to net-negative outcomes."