Independent shipping platform SHIPNEXT has developed a new emissions index aimed at addressing industry concerns regarding the International Maritime Organization’s (IMO) emissions reduction measures. The new SHIPNEXT emissions index is centered around cargo and has been designed specifically for vessels carrying breakbulk, dry bulk, heavy and oversized shipments in consultation with ship owners. Belgium-based shipping and tech entrepreneur, Alexander Varvarenko, states that the SHIPNEXT Voyage Emission Index (SVEI) takes into consideration individual technical parameters of the vessel, its speed, consumption and intake, as well as the actual cargo quantity and intended voyage.
SVEI reflects the ship’s fuel consumption at sea, considering the vessel’s work in particular. Fuel consumption at port is not taken into account, as it is comparable for most ships, and the time for loading and discharging is primarily determined by port technology, rather than the technical capabilities of the vessel. The SHIPNEXT Carbon Intensity Indicator (SCII) is proposed as an alternative to the IMO’s CII rating, which measures the efficiency of a vessel over 5,000 GT. The IMO plans to assign vessels a performance score between A-D, with increasingly strict criteria by 2030.
Some carriers, including Maersk, have expressed dissatisfaction with the IMO CII, arguing that it does not incentivize cargo optimization and calling for a methodology that rewards more productive vessels. The SCII has been designed to do just that.
“The major problem with the existing IMO guidelines is that they do not take into consideration the cargo actually being carried on a voyage,” says Alexander Varvarenko, the CEO and founder of SHIPNEXT. “When you do so, the emissions profile of a given voyage changes completely.”
According to SHIPNEXT’s modeling, an older ship with higher emissions can potentially be a more environmentally friendly option compared to a newer vessel producing more carbon dioxide due to its longer voyage, provided the older ship is managed properly and fully loaded with cargo.
Adds Varvarenko: “Our approach stimulates owners to manage their vessels more efficiently with fewer ballast runs, while also continuing to follow all the other existing emissions indexes that are imposed on them around vessel construction.
“There has to be logic to how shipping lines are taxed for their emissions. What we are proposing is a fair and reasonable approach during the transition to cleaner shipping, which allows both shippers and carriers to share the costs.”