Port & Regulatory

Glander International Bunkering dives into Carbon Intensity Indicator

Published

6 months ago

November 26, 2024

Admin

Global bunker trading firm Glander International Bunkering on Monday (18 November) published an article tackling Carbon Intensity Indicator (CII) and gives five reasons to prioritise CII:

The Carbon Intensity Indicator (CII) from the International Maritime Organization is a vital yet under-discussed regulation for decarbonizing the shipping industry that warrants more attention.

The regulation was first drawn up in 2018 and came into effect at the start of 2023, as part of the so-called short-term measures following IMO’s initial greenhouse gas strategy.

All vessels larger than 5,000 GT are assigned a CII rating based on historical data submitted to the IMO. The rating reflects the vessel’s CO2 emissions per unit of cargo capacity (DWT) per nautical mile.

Ratings range from A to E, with A at the top of the scale, and will be determined on an annual basis. Ships receiving a D rating for three consecutive years or an E rating for a single year will need to update the Ship Energy Efficiency Management Plan (SEEMP) to include corrective actions aimed at improving performance.

Achieving a higher rating makes the vessel more attractive to companies and cargo owners focused on minimizing GHG emissions. Below are five reasons to prioritize CII, even as other regulations capture more attention.

Action not Reaction

CII is a regulation where proactive planning pays the biggest dividends.

If a ship is performing at an E-grade level for most of a year, trying to get that up to an A before the year ends will yield little in the way of results, but earlier action can have a large impact.

Every shipowner should be paying careful attention to their vessel’s trade patterns, the type of fuel it uses, and which energy-saving technologies could be installed on it. Conducting this analysis early and formulating a plan to improve CII scores will yield multiple long-term benefits.

Business Competitiveness

The main reason for shipping companies to pay attention to CII is to improve their bottom line. Charterers and cargo owners with targets to lower GHG emissions may favor ships with a good CII grade, as the use of these vessels will reflect well on their own environmental performance. Equally, ships trending towards a failing grade are likely to be seen as less efficient.

A good CII score could also result in better financing options as vessels that trade more efficiently experience less idle time. Further, financial institutions focused on GHG reductions may offer favorable terms for vessels deemed more efficient with better CII scores.

Beyond this, CII is largely an indication of fuel efficiency, which should be a prime concern in any case; bunker costs are the largest expense for most shipping companies, and lowering these bills in any way possible will mean higher profitability in the long run.

CO2 Compliance

The main purpose for the CII regulation is to encourage the reduction of CO2 emissions. Decarbonization has emerged as a priority for the shipping industry, and companies that fail to keep pace with this agenda will increasingly be perceived as lacking a strategic vision for the future.

Installing energy-saving technologies, using voyage optimization tools and burning biofuel blends will all contribute to reduced CO2 emissions and better CII scores.

Decreased Costs

Prioritizing CII scores is expected to result in overall cost savings for shipping companies. This is potentially due to vessels having less idle time and trading more efficiently, which cuts bunker bills.

Steps towards compliance with CII will also assist in addressing other regulations such as the EU ETS, FuelEU Maritime and any carbon taxation the IMO may choose to impose in future. Each of these regulations comes with a cost, and early work on CII will reduce these costs in time.

ESG Focus

Finally, formulating a strong strategy on CII can play an important role in advancing your company’s environmental, social and governance (ESG) agenda.

Having a fleet with consistently high CII scores sends a message that your company is planning well for the future, recognizing its role within the energy transition and taking ESG seriously. Banking and insurance counterparties are likely to take a keen interest in ESG plans, and your work on these issues may also feed into your customers’ own ESG strategy.

Photo credit: Glander International Bunkering
Published: 26 November, 2024

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Chimbusco completes bunkering op of China’s first 16,000K TEU methanol DF boxship

“COSCO SHIPPING YANGPU” was supplied approximately 900 metric tonnes of methanol marine fuel by Chimbusco in Shanghai on 11 May.

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Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) completed a bunkering operation of the first domestically manufactured methanol dual-fuel container ship in Shanghai on 11 May, according to COSCO Shipping on Thursday (15 May).

COSCO SHIPPING YANGPU was supplied approximately 900 metric tonnes (mt) of methanol marine fuel by Chimbusco at Pier 1 of COSCO Shipping Heavy Industry.

The operation started on 7 May but was postponed due to unfavourable weather from the Jianghuai Cyclone.

Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

COSCO Shipping said the operation marked an important achievement in green and low-carbon transformation in shipping, from ship construction and ecological layout of the entire green fuel industry chain of the company.

Manifold Times previously reported the naming ceremony of China’s first 16,000 TEU methanol dual-fuel container ship, COSCO SHIPPING YANGPU in Yangzhou.

The methanol dual-fuel container ship named was the first in a series of vessels from COSCO Shipping Holdings, constructed by COSCO Shipping Heavy Industry Yangzhou.

Photo credit: Cosco Shipping
Published: 23 May, 2025

LNG Bunkering

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Milestone was achieved by Shell’s LNG bunker barge “Haugesund Knutsen” supplying the “Mein Schiff Relax” cruise ship at Port of Barcelona, says Dexter Belmar of Shell.

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Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Energy giant Shell recently conducted its first LNG bunkering operation for TUI Cruises in Barcelona, according to Dexter Belmar, General Manager and Head of Global Downstream LNG on Thursday (22 May).

He said the milestone was achieved by Shell’s LNG bunker barge Haugesund Knutsen supplying the Mein Schiff Relax cruise ship.

“Barcelona, one of Europe and the Mediterranean’s leading cruise ports, is also a key LNG bunkering location for Shell as we help more cruise ships transition to lower-emission fuels,” he said in a social media post.

“A huge thank you to Royal Caribbean Group for their trust, and to Knutsen and Port of Barcelona for their collaboration in making this bunkering safe and efficient.”

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Belmar said LNG is leading the way as the preferred alternative bunker fuel in the cruise industry.

“At Shell, we’re proud to support LNG fuelling needs at 26 locations worldwide, including major cruise ports like Bahamas, Barcelona, Canaveral, Everglades, Jamaica, Miami, Singapore, Southampton, and Tenerife,” he added.

Photo credit: Shell
Published: 23 May, 2025

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IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

LNG bunkering fleet is concentrated in Europe with the highest capacity of operational bunkering vessels, followed by Asia/Asia Pacific and North America, according to 2025 World LNG report by IGU.

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IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

The global operational LNG bunkering and bunkering-capable small-scale vessel fleet reached 56 units at the end of December 2024 with further support from expanding infrastructure and regulatory drivers such as the IMO’s ban of heavy fuel oil in Arctic shipping and the EU’s FuelEU Maritime regulation.

This was nine more vessels than in 2023, with a total added capacity of 82,900 cubic metres (m3).

This was one of the major highlights in the 2025 World LNG report by the International Gas Union (ICU), which was launched at the 29th World Gas Conference (WGC2025) in Beijing on Thursday (22 May).

IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

The LNG bunkering fleet is concentrated in Europe with the highest capacity of operational bunkering vessels. This is followed by Asia/Asia Pacific and then North America, both of which have seen rapid expansions in the past five years.

As of the end of 2024, Europe has the highest bunkering capacity, with a total of 190,757 cm across 25 vessels currently in operation within the region.

Asia/Asia Pacific has the second-highest bunkering capacity, with a total of 179,700 m3 across 17 vessels in operation. From that, China currently has five operational LNG bunkering vessels while South Korea currently provides STS bunkering services with four bunkering vessels. Singapore currently has three bunkering vessels in operation.

North America continued its progress toward becoming a significant region in the LNG bunkering market in 2024, reaching a total capacity of 86,400 m3 across 10 operational vessels by year-end.

The report noted: “2024 was a significant year for LNG bunkering. Bunker users were quick to capture the reductions in both fuel costs and carbon emissions from using LNG, taking advantage of lower LNG prices relative to other marine fuels in 2024. Lower prices and an emerging LNG-fuelled fleet were catalysts in the large uptake in LNG bunker volumes.”

The Port of Singapore, which is the largest bunkering port in the world, recorded 463,900 tonnes of LNG bunkered in 2024, almost four times the 110,900 tonnes in 2023. The Port of Rotterdam, the second-largest bunkering port in the world, also recorded a 52% increase in bunkered LNG, from 620,000 cm in 2023 to 941,366 cm in 2024.”

IGU also said the newcomer in STS LNG bunkering is the Middle East with the LNG bunkering vessel Green Zeebrugge.

“The ship moved at the end of 2024 to Dubai and has performed the first ever LNG bunkering in the Middle East. This area is identified as a potential new LNG bunkering hub with Oman, the UAE, and Qatar as the main bunkering locations.”

Note: The ‘2025 World LNG Report’ can be downloaded here.

Photo credit: International Gas Union
Published: 23 May, 2025