Why Are The New Shipping Regulations Are Under Fire
The global warming issue is not a topic of the past. In fact, shipping companies are taking the issue seriously as they seek to pass new regulations to prevent the effects of global warming. The Carbon Intensity Indicator is a new tool to lower carbon emission and better protect the environment. However, experts do not believe this is the case.
What Are the New Shipping Regulations?
The ocean industry is doing everything they can to pass new regulations that will reduce their carbon footprint and increase the efficiency of their vessels. As part of the United Nations’s National Maritime Organization, the Carbon Intensity Indicator (CII) should help car carriers, bulkers, tankers, and other vessels lower their fuel emissions. However, many outside companies do not understand how this will work. While this seems like a great idea, these new shipping regulations come with other consequences that affect more than global warming.
Why Are the Regulations Under Fire?
In order for the CII to work effectively, shipowners and charters have to cooperate and come to an agreement on fuel emissions. Both sides need to agree on how they will reduce fuel emissions. However, the current situation shows approximately 23 vessel charter companies refuse to comply with the new CII regulations. These companies believe the regulations require more demand on their teams than on shipowners themselves. According to the regulations of the CII, each vessel will receive a rating according to their fuel emission. The International Maritime Organization (IMO) will then create a specific plan to reduce the vessel’s carbon footprint overtime. Experts suggest a vessel’s lower rating could mean less chance of purchase, causing fewer profits for shipowners. Shipowners would have to update their ratings frequently on the vessels to avoid this issue.
The ratings are not the only issue many companies notice with the CII regulations. Many companies believe calculating the carbon intensity of vessels is not enough to reduce the carbon footprint and prevent global warming. One issue with the regulations is that it doesn’t include the vessel’s cargo load. Experts suggest the regulations should reduce the cargo per ton.
Second, the regulations do not indicate the distance a vessel travels. If a vessel travels a shorter distance in a year, they may receive a worse rating because their average distance is lower. If the CII regulations remain the same, the results will reflect inaccurate results and produce negative performance for thousands of companies.
What Does This Mean For the Future Of Businesses?
So, what do these new shipping regulations mean for the future of businesses? The hope is that shipowners and charters will reach an agreement and shipping companies will not experience a halt in operations. However, there is always a possibility of this happening. Other companies should remain aware that shipping methods are always changing right now, especially when you include inflation rates. The good news is there are companies that partner with businesses and help them navigate time critical shipping issues to ensure success.
Trifecta Transport works closely with our customers to answer their questions and give them the peace of mind they need in their business. Partnering with our team can offer you the support you need for shipping, scheduling, booking, and more. Let us help you find the shipping method that fits your time and budget needs.
Partner With Trifecta Transport Today
Are you ready to partner with our team for your business needs? Contact Trifecta Transport today and let us support you in business communication and technology. We can help you choose the right shipping methods that deliver on time and within your specific budget. Get in touch with us today. We look forward to working with you.