Page 21: of Marine News Magazine (February 2023)

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This is not a new issue. The discussions concerning reduc- your vessel delivery around 2026 or 2027. Five years later, ing energy use, engine “derating” and reducing ship speed during your ? rst special survey, you will be required to meet reaches back to the “ECO” ship debates decades ago. The a 40% reduction in greenhouse gas emissions as compared “emissions” discussions and speed reduction were the avenue to 2008 levels. Your choice of engine, energy savings device to reduce CO2. Those who took part in the ECO debate ar- and alternative fuel type must be made now, and these deci- gued that the reduction of power to reach the IMO propos- sions are not easy. In fact, the downturn may be ampli? ed als placed the vessels in jeopardy at sea. Others looked at the by these dif? culties. And as a result, many of the larger Ko- commercial bene? t with regard to the supply and demand rean yards and design houses are looking at carbon capture imbalance. Operators knew that the main engines were not rather than alternative fuels, a means to continue with large designed to operate for long periods at lower output levels. two stroke engines burning existing fuel sources until such

Most of the current operating tonnage delivered with alternative fuel infrastructure can be developed. an Energy Ef? ciency Design Index (EEDI) calculation are CII is based directly on fuel consumption and is related looking at how their Energy Ef? ciency Existing Ship Index to the ship’s technical ef? ciency and fuel. Operational pa- (EEXI) calculation and their CII rating will fare in 2023. rameters such as vessel speed, cargo transported, weather

A MARPOL Annex VI requirement, the CII basically conditions and the general condition or maintenance of measures/calculates the ef? ciency of a ship in transport- the vessel including hull fouling are also reviewed.

ing cargo or passengers in terms of its CO2 emissions per After nearly 45 years as a builder, owner and ship man- nautical mile and carrying capacity. ager, it is our experience that the operational parameters

CII determines the annual reduction needed to ensure listed above have always been the items analyzed by crew continuous improvement of a ship’s operation within a speci? c rating level. Understand the factor of “per nautical mile” or the actual voyage itinerary severely impacts that calculation along with your rating and how you compare to your competition. Start advising your chartering depart- ment to plan LONG voyages.

Recent survey reports indicate older tonnage will require the installation of an “energy savings device”, their main engines derated and operating speeds reduced to meet the new emission reduction goals. The CII currently addresses actual tonnage on the water. What is important is the IMO 2030 requirement to reduce emissions by 40% is now only seven years away—a period that can be associated with re- cent declines in Far East shipbuilding. CII may reach be- yond existing tonnage and into your building plans.

Overall, industry analysts reported that South Korean orders were down 28% during the second quarter of 2022.

The Korean Export-Import Bank has projected a further decline of 42% for 2023. We can place blame on the glob- al pandemic or the geopolitical environment affecting all freight markets. Take also into account the price of steel af- fecting construction costs and a supply chain debacle cre- ating havoc with delivery of machinery and equipment— all solid reasons forcing a downturn to occur. That said, the upcoming seven-year period may see a further decline in one of the major shipbuilding countries in the world.

If you are making a decision to build in 2024, the deci- sion process and speci? cation review, coupled with a con- struction period of 10 to 12 months to delivery, results in www.marinelink.com MN 21|