Impact of IMO 2023 on global shipping
From 2023, all ships, throughout the globe, will need to comply with the new energy regulations as set out by the International Marine Organisation.
IMO 2023 is focused on reducing carbon emissions in the shipping industry with a goal of achieving a 40% reduction by 2030 and a 70% reduction by 2050.
The new regulations – an overview
There are two main parts to the new regulations that will have an impact on sea freight and these are the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator Rating Scheme. Let’s take a closer look at what these new systems actually mean…
Energy Efficiency Existing Ship Index
There is currently an energy performance rating system in place for new build ships, but the index didn’t previously affect existing ships. As ships can have a long life span, it’s been deemed important to extend the index to encompass these older ships, in order to encourage energy efficiency. This is perhaps even more vital in older ships that may be less fuel efficient overall. The system assesses various aspects of energy performance based on the ship’s specifications, including energy consumption, engine size, power, and speed. A rating will be assigned to each vessel, and a minimum rating set. Failure to meet the minimum requirements may result in penalties and restrictions, and the ships may be required to make further energy-saving modifications in order to reach the necessary minimum standards.
Carbon Intensity Indicator Rating Scheme
The CII rating system is a measure of carbon emissions, linked to both distance travelled and the size of the cargo. Again a threshold will be set, and when measured, ships will be assessed annually and given a grade between A and E, with A being good and E being poor. If a ship receives either a D grade for 3 years in a row or a single E grade, further action to reduce emissions must be implemented. Ship owners will need to be aware that the threshold is not set permanently, and will become stricter over time, so any vessels with a lower rating should begin to focus on reducing carbon emissions as much as possible, to prevent failing the assessment in years to come.
What will this mean in practical terms?
Overall, these new regulations are going to have an impact on many operators, and this impact could be felt across the board, ultimately trickling down to the general population, as price increases are passed on to the end user. Many shipowners are going to have to invest in modernisation to improve their energy efficiency. Time out of service would of course also be a consequence of this. This could particularly affect older vessels that may need the greatest amount of modification to get up to standard. In addition, there may be restrictions on speed, which would make passage slower, and therefore less cost-effective. But in the end, the resulting lowered carbon emissions can help to protect our environment and ensure the protection of our planet for future generations. IMO 2023 will encourage operators to look at ways to improve energy efficiency and adopt new fuel technologies.
For our customers, as always we aim to bring you an unsurpassed level of service, and with these new regulations in place, you can rest assured that all your overseas transportation requirements will be fulfilled with the minimum impact on the environment. Whether you’re moving across town, or relocating overseas, our experienced team of expert movers is here to help. Get in touch today for a quote for your next move in our safe hands.