2 February 2023 (Lloyd's List) - NEW regulations aimed at reducing shipping’s carbon intensity could pave the way for a wider digitalisation effort, as shipowners turn to technology to improve fleet efficiency. The International Maritime Organization’s Carbon Intensity Indicator and Energy Efficiency Existing Ship Index measures came into force on January 1, 2023, applying to all cargo vessels and cruiseships at and above 5,000 gt. Starting from March 2024, vessels will receive ratings from A to E, with the latter representing the least-efficient ships. Thresholds will become increasingly stringent through to 2030. Proposals have been met with considerable pushback by industry stakeholders, who have raised concerns over the rulings metrics and the fundamental flaws as to how the measures will be enforced. Ships that fail to make the grade will be required to adopt an improvement plan. How this is achieved and monitored remains a grey area. While concerns may be legitimate, if the CII is to be rolled out successfully, there is consensus that digital tools and technology centred on improving vessel efficiency and optimisation will be pivotal. Indeed, Nick Chubb, founder and managing director of the maritime innovation consultancy Thetius, says the only way to make regulations like CII work is by using digital tools. As such, there has been a significant increase in investment for digital solutions — particularly in the past three months, ahead of and since the initiation of the CII ruling. Energy-saving devices and other technological solutions have now become a top priority for shipping companies. A report by Thetius, published in 2022, stated that CO2 emissions savings of 18% or more in some cases are being reported across early digital decarbonisation adopters. According to Dr Maurizio Pilu, managing director of Safetytech Accelerator, a non-profit initiative by Lloyd’s Register, these investments — and similarly the options open to stakeholders to enhance vessel efficiency — are two-fold. The first, he says, is voyage efficiency and monitoring, reporting and verification (also called MRV), involving tools that help measure everything from weather rerouting and reducing time spent at ports to avoid higher fuel consumption. This could also stretch to other methods, such as those adopted by Star Bulk Carriers and others — which have even started using robots to clean hulls during drydocking to reduce fuel consumption. Mr Pilu says the second option available to shipping companies are those that fall under “ship design and chemistry,” where artificial intelligence and the latest technology can also be utilised to reduce emissions. While including engine and propulsion optimisation, this could also extend to blockchain-enabled technologies that can help trace the carbon intensity of bunker fuels, as highlighted in a recent study published by Lloyd’s Register. Some digital technologies could also help the industry to address key challenges for alternative fuels, such as tracing lifecycle emissions, or the so-called well-to-wake issue. Of course, the implementation of these digital tools, while effective at addressing the requirements stipulated under the CII ruling, have the added benefit of reducing operational costs — a major plus-point for shipowners and one of the main selling points for investing in new technologies. Paolo Moretti, chief executive at Italian classification society Registro Italiano Navale Services, says in the ‘class’ field, there has been a notable and significant uptick in interest from the industry in how digitalisation can help them comply with current and potential regulations for this very reason. “We see more and more clients asking us about automatic data collection and software to control the CII of their fleet,” said Mr Moretti. Adopting the whole digitalisation package is much more attractive for shipowners than in the past, he explains. Not only is there an increase in cost-savings — where, in some cases, there are opportunities to cut operational costs by double-digit percentage proportions — but there is also a clear window to improving a vessel’s CII rating, said Mr Moretti. More importantly, however, is what he perceives as a change of industry mindset. Whereas before, shipping’s fragmented approach to digitalisation has been a stumbling block, it is becoming increasingly evident everyone is on board. “I believe this is the moment in which the perception by the shipowner — even the smaller one — is changing on this topic,” said Mr Moretti.