The new IMO efficiency and emissions standards for existing ships (EEXI – Energy Efficiency Existing Ship Index) will require shipowners to focus on compliance and reducing emissions.
To assist industry participant, VESSELINDEX® has developed a Greenhouse Gas Emissions Rating - VESSELINDEX® - GHG RATING. It is framed in the context of the existing IMO environmental regulations and climate agreements. The VESSELINDEX® - GHG RATING is a practical measure reflecting the actual performance of vessels, and it makes comparison of a ship’s CO2 emissions easy and transparent for the industry.
The VESSELINDEX® - GHG tool enables users to issue a GHG-certificate which contains all the information needed to satisfy counterparts in terms of:
The GHG certificate is uniquely timestamped to guarantee counterparts of the authenticity and relevance.
See an example of a GHG - certificate HERE
Clauses in charter parties - related to GHG impact – are often dictated by Charterers (for example through Rightship rating)
The VESSELINDEX® - GHG tool will help owners and operators to balance the, often, intangible requirements from charterers by providing a full overview of the dynamics related to the GHG profile of a vessel.
As an example, Owners could now use following clauses in their Charter Parties:
"Owners confirm that the vessels GHG rating is IMO compliant at all times during the duration of this charter in the speed range xx knots to yy knots"
“GHG rating to be minimum D based on Rightship, VESSELINDEX® - GHG or similar rating service provider”
Along with the VESSELINDEX® - GHG certificate, these clauses will enable a flexible and transparent way of negotiating around the charterers GHG requirements.
IMO compliance is very clearly defined by an emission reference curve which varies depending on the ship type. This curve should always be the starting point for any dealing with regards to GHG management.
Read more about reference lines in IMOs public documentation
The VESSELINDEX® - GHG RATING is derived from vessel standard descriptions based on charter party information, i.e., speed & consumption figures that are guaranteed by the vessel owner. This is a reasonable proxy as guaranteed figures implies that the owner of the vessel will be penalized if his vessel does not perform to its description!
Due to many factors such as engine wear, fouling of hull and propeller, the speed & consumption description of a vessel will fluctuate over its lifetime. As an example, imagine that a vessel has been idle for 4 weeks off West Africa – such an event would cause significant hull and propeller fouling and would force the owner to revise the speed/consumption description of the vessel.
In the broader perspective commercial speed & consumption descriptions are effective proxies for actual consumption data, as the ship owner is always incentivized to provide figures that reflects the actual performance of the vessel. However, due to the dynamic nature of speed & consumption descriptions, the VESSELINDEX® - GHG RATING is therefore dynamic and will change over time.
Hence, VESSELINDEX® - GHG RATING reflects the actual description of a vessel and constitutes a reliable and tangible reference point for owners and charterers.
In addition to the GHG rating, VESSELINDEX® also provides an EEXI tool.
Users can calculate EEXI to establish IMO compliance of a given vessel. If compliance is not obtained the tool will guide on new maximum operational speed.
Furthermore, it will calculate the potential monetary consequence of any speed limitation.
Click HERE if you like us to contact you regarding this solution.