INTERCARGO, the International Association of Dry Cargo Shipowners, on Monday (23 September) called on the International Maritime Organization (IMO) for a straightforward mid-term GHG reduction strategy in the industry's decarbonisation efforts. 

The association emphasised the critical need for practicable solutions to ensure effective implementation of emissions reduction strategies.

Key Points:

• Support for Integrated Framework: INTERCARGO endorses in principle the updated joint proposal by Bahamas, Liberia, and the International Chamber of Shipping (ICS) for an “IMO net-zero framework.”
• Simplified Pricing Mechanism: Backing a flat-rate contribution per tonne of GHG emitted, with incentives for zero and near-zero GHG fuel usage.
• Predictability for Stakeholders: Advocating for fixed annual GHG fees over minimum five-year periods.
• Well-to-Wake Approach: Supporting a comprehensive emissions accounting system while addressing concerns about upstream emissions beyond shipping's control.
• Cautious Approach to Decarbonisation Fund: Highlighting the need for thorough review of legal issues and alignment with UN climate fund principles.
• Fair Cost Distribution: Endorsing the principle that charterers or commercial operators, as fuel cost bearers, should also cover GHG fees and compliance costs.
• Reduced Administrative Burden: Calling for streamlined processes, especially for dry bulk tramp shipping facing global compliance challenges in accessing safely green energy sources in ports around the world.

“The path to shipping's decarbonisation must be paved with practical, implementable solutions,” said INTERCARGO’s Secretary General Kostas Gkonis. 

“Our support for these measures reflects our sector’s commitment to environmental responsibility whilst maintaining operational efficiency and smooth global transportation of essential goods.”

INTERCARGO stressed the importance of global governmental action and cross-stakeholder collaboration throughout the maritime transport chain to achieve these ambitious goals.

Photo credit: Chris Pagan on Unsplash
Published: 24 September, 2024 

The International Bunker Industry Association on Thursday (18 July) said its members, along with the wider shipping industry, are actively pursuing operational energy efficiency improvements as part of goals consistent with the International Maritime Organization’s (IMO) 2023 Strategy on Reduction of Greenhouse Gas (GHG) Emissions from Ships.

With the IMO’s initial Carbon Intensity Indicator (CII) ratings applied to ships, IBIA has noted the current inadequacies of CII methodology to appropriately reflect the service of bunker vessels which predominantly operate over short distances (duration) in port areas. 

“IBIA seeks a CII methodology that is accurate, reliable, and implemented in a manner that fully reflects the intent of the IMO Strategy for its members’ bunker vessels that undertake a vital role in supporting international trading commercial ships,” it said in a statement. 

IBIA agreed with other industry associations that to achieve the IMO’s intent, the CII must be appropriate for each shipping sector. 

“A one-size-fits all instrument, as the CII is currently designed, has inherent flaws that has resulted in the introduction of goals that, because of the way CII is calculated, penalises vessels that undertake short voyages (duration),” it added. 

The IMO’s Marine Environment Protection Committee (MEPC) at its 81st session in March 2024, publicly acknowledged significant concerns raised by IMO Member States and industry, recognising “shortcomings and unintended consequences of the CII mechanism and the general agreement that these concerns should be fully considered and addressed during the CII review process”. 

IBIA said it supported the calls to amend the current CII mechanism, especially in view of the likely expected strengthening of the CII requirements after 2026, to avoid unintended consequences that are contradictory to IMO’s key principle of maintaining a “level playing field” through the regulation of international shipping. 

“IBIA looks forward to the commencement of the CII ‘data analysis stage’ at MEPC 82 in September following the ‘data gathering stage’ and to that end has proposed through a submission to that meeting an amendment of the current CII methodology and formula to incorporate a short voyage (duration) correction factor that will go some way to address the service duty of bunker vessel when they support international shipping,” it concluded. 

Photo credit: International Bunker Industry Association
Published: 19 July 2024

CIMAC, a global non-profit association promoting the development of ship propulsion, on Tuesday (16 July) said it has been officially granted consultative status with the International Maritime Organization (IMO). 

CIMAC had submitted its application earlier this year. 

Rick Boom (Woodward) CIMAC President, said: “We are extremely happy that our application has been successful. We look forward to sharing CIMAC's broad expertise in large engines, power, drives and propulsion with IMO even better.”

“We are convinced that CIMAC's work can contribute to achieving IMO's goals.”

Eero Lehtovaara (ABB Marine and Ports), CIMAC VP Digitalisation, said: "There are still many opportunities to optimise the status quo in shipping. Just think of efficiency gains through digitalisation, for example.”

“We want to encourage the maritime industry to embrace digitalisation and implement it. We hope that closer cooperation can contribute to faster implementation.”

Peter Müller-Baum, CIMAC Secretary General, said: “Within IMO, CIMAC will concentrate on digitalisation, non-shaftline propulsion, automation and system integration.”

“Our members have a great deal of expertise in this area, and we are looking forward to the new tasks and will do our best in order to support the International Maritime Organization.”

Photo credit: International Maritime Organization
Published: 17 July 2024