A Brave New World: Global Trade and the IMO’s Carbon Intensity Indicator
Testy geopolitical relationships, an escalating drive toward energy security and diversity, and changing sourcing patterns won't be the only factors complicating the nature of project and breakbulk shipping over the next few years. New emissions regulations from the International Maritime Organization, particularly the Carbon Intensity Indicator, already are putting ship owners and time-charter operators at odds and have the potential to further restrict available capacity in the already-tight multipurpose segment. Among many other activities, BIMCO, a non-profit, non-governmental organization, publishes industry standard contracts widely used across all shipping segments. Accordingly, BIMCO has developed a CII Operations Clause for Time Charter Parties that is engendering significant controversy in the industry. Further, industry members question whether the underlying CII regulation is fit for purpose in the first place. Although data won't be collected and used to create a revamped CII until 2026, the shipping community must deal with the new CII regime immediately, and the BIMCO clause will be crucial to this. How will it affect MPV carriers and their project and breakbulk customers? Thomas Damsgaard, who recently opened BIMCO’s newest office in Houston, is a well-known and respected member of the shipping community with deep experience in the multipurpose sector. This Q&A session will address the immediate effects of CII, the BIMCO clause, and implications for owners, operators, service providers, and MPV customers.