HMM announced on July 24 that 99% of its fleet has met the Carbon Intensity Index (CII) regulation, which is being implemented to curb greenhouse gas emissions.
The CII is an environmental regulation implemented by the International Maritime Organization (IMO) that indexes the amount of carbon dioxide emitted to transport one ton of cargo one nautical mile (1,852 meters) using information on ship operations such as fuel usage and distance covered.
The IMO plans to manage carbon emissions by applying the CII rating from 2024 onward based on the performance of 2023 operations, and restrict the operation of ships that emit more than a certain amount of carbon.
As a result, ships of 5000 tons or more worldwide will be assigned an A to E rating based on one year's operational information. Vessels with a D rating for three consecutive years or an E rating for one year may be restricted from operating until a remediation plan is approved for a C rating.
HMM has developed and operates its own CII simulation and monitoring system to proactively respond to CII regulations. In addition, we recently requested verification from Korean Register (KR), a certification organization, based on the first half of the year, and KR conducted verification through "KR GEARs," a greenhouse gas portal system.
As a result of the verification, 99% of HMM's 67 directly owned vessels, except for one, received preliminary judgments of A to D, which are suitable for operation. The one bulk carrier with an E rating could improve its rating by adjusting its speed and using biofuel.
HMM's results are notable because they are well above the global average and demonstrate the company's progress in becoming a greener shipowner.
The IMO estimates that about 35% of the global fleet will be rated A to B, and about 35% of the fleet will be rated D to E. In contrast, HMM is 69% A-B and only 13% D-E rated.
HMM's excellent CII rating is largely due to its advanced data-driven vessel energy efficiency management and route-specific operational planning, which has resulted in an 11.1% reduction in port dwell time (for container ships). The company is also implementing various activities to save energy, such as operating at lower speeds and replacing high-efficiency propellers.
