The operational measure adopted by the IMO, Carbon Intensity Indicator (CII), came into effect at the start of the year. As a result, a large share of the global fleet is expected to reduce sailing speed in order to comply, which would impact asset values. The Clarksons Green Transition team has developed a breakthrough speed-CII modelling tool that, through client projects has demonstrated that many of the traditional methodologies being relied upon for decision-making are inaccurate. Findings indicated that CII improvements through speed reduction have been “grossly overestimated” as calculations have been based on textbook speed-consumption curves which have exponential growth across an entire speed range. Real-world conditions have proven the curve becomes less exponential (of flatter) at lower speeds.
