There is seemingly no end to the number of challenges facing the shipping industry in terms of optimizing voyage performance. Improvements to forecasting inclement weather, sourcing sufficient labor, and mitigating damage to goods are increasingly crucial to maintaining favorable profit margins. But on top of the business and operations side of the shipping industry, another essential factor needs to be considered: the environmental impact.
As a global citizen, you understand that your actions affect the world’s climate and future generations. So naturally, you want to do what you can to increase your company’s environmental responsibility while still remaining profitable and providing the necessary services to your clients. One of the best ways to do both is by implementing Just-In-Time (JIT) arrival by using weather and ETA optimized routing for your ships.
Most vessels still sail more or less consistently with charter party speed to the terminal. However, you can effectively implement JIT arrival. How? By:
- implementing weather and ETA dependent route and speed optimization and instead of fixed speed orders;
- passing the updated weather and Requested Time of Arrival (RTA) Berth (due to changes in berth or port planning, for example) to the vessel; and
- putting standing instructions to adjust the arrival time accordingly.
With the host of products and services available to the shipping and marine industry through DTN, companies can benefit from the most comprehensive weather intelligence and routing service in the world.
Think of what it would mean to have accurate real-time and long-term forecasts and reports readily available, together with the ability to create and update weather and ETA optimized routes at the click of a button. This would allow for seamless implementation of JIT arrivals. The result? Improved fuel efficiency, reduced CO2 emissions, and desirable CII ratings.
Environmental regulations are constantly changing and evolving. For example, with new regulations in the maritime industry coming into effect in 2023, it is more essential than ever before for shipping companies to reevaluate and examine their environmental impact and make the needed changes to be as green as possible. Let’s look at one of these new regulations – the CII – its effects on you and what you can do to work with it while maintaining profits.
What is a Carbon Intensity Indicator rating?
In 2021, the International Maritime Organization (IMO) agreed to put two new measures into effect in January 2023. One measure, the Energy Efficiency Index for Existing ships (EEXI), measures the physical design and equipment of the ship. The other, the Carbon Intensity Indicator (CII) rating, measures the efficiency of the vessel’s performance.
The annual CII rating will be calculated using the Annual Efficiency Ratio (AER) formula adjusted for corrections and exclusions, as shown below.
AER= Annual Fuel Consumption. CO2 emission factor/Annual Distance Sailed Capacity
CII=AER adjusted for corrections and exclusions
The rating depends on the data submitted by the ship in its IMO DCS report. It will be awarded a CII rating from A to E, with A being the best.
CII rating criteria will become stringent every year, and ships will have to optimize their operations continuously to maintain the desired CII rating. Consequently, incentives will be awarded to companies using ships with high ratings.
Why reducing your carbon footprint is essential.
We have been hearing this for years: the current pace we are using (or misusing) the earth’s resources is not sustainable. Change needs to happen sooner rather than later. This position is true in every industry, but it is keenly visible within maritime shipping.
According to the United States Environmental Protection Agency, greenhouse gas emissions of the entire shipping industry rose 9.6% between 2012 and 2018, totaling 1,076 million tonnes in 2018. While vessels make up a small percentage of those emissions, the adverse effects are still concerning.
A 2018 study outlining the health and climate impacts of global shipping showed nearly 400,000 premature deaths annually caused by the international shipping industry. The adoption of cleaner shipping methods could significantly reduce this number.
Regulators understand the importance of making drastic changes to reduce harmful emissions but balancing necessary environmental changes while remaining profitable is the challenge.
It’s time to implement JIT arrivals by using weather and ETA optimized routes
With the new IMO regulations set to come into effect on January 1, 2023, the clock is ticking for shipping companies to act to keep their ships compliant. And, with increased urgency and attention to the environmental issues faced today, we expect stricter regulations in the years to come.
By implementing JIT arrivals, ships can sail slower and still reach the jetty in time. They can avoid idling at the anchorage and reduce the turnaround time in ports. DTN allows you to better understand the impact of implementing JIT arrival on your fleet’s emissions and CII ratings.
Using our routing tools (available as an API and as desktop software), updated routes can be created as soon as the port or terminal has provided a new RTA berth. The new route will be both weather and ETA-optimized. This will not only improve the ship’s CII ratings but will keep your ship, crew, and cargo safe as well.
The expert team of meteorologists and proprietary marine forecasting engine at DTN gives you the most up-to-date weather forecasts, routing guidance, and operational intelligence. Thus, enabling you to confidently and quickly make critical decisions to improve the profitability and safety of your operations while doing your best to stay green.
Learn more about the number of products and solutions available to the marine industry today and how you can put them to use for you and your business.