The Carbon Intensity Indicator (CII) is the IMO's operational energy efficiency measure supporting international shipping's decarbonisation targets. It applies to vessels of 5,000 GT and above engaged on international voyages. Carbon intensity is calculated from each vessel's actual annual operating data, and the Administration assigns a rating on a five-band scale from A to E, where A is the best performance and E the worst.
The 2026 amendments strengthen the incentive structure at both ends of the scale. Vessels achieving an A or B rating qualify for annual fee reductions and priority service from certain Flag State Administrations, while vessels rated D for three consecutive years, or E in any single year, must submit and implement a corrective action plan under SEEMP Part III.
Practical Impact on Owners and Managers
For owners, the CII rating is no longer purely a question of compliance — it bears directly on operating cost, chartering competitiveness and asset value. Charterers increasingly take the CII band into account when concluding time charter agreements, and poorly rated vessels may face less favourable hire rates and financing terms.
"Effective carbon intensity management is determined not by the year-end rating, but by the quality of voyage data and operational decisions throughout the year."
Ocean Grow's Recommendations
Ocean Grow advises managed owners to establish a complete data reporting and analysis process at an early stage, integrating carbon intensity management into daily operations:
- Establish a reliable mechanism for collecting annual fuel consumption and distance travelled data, ensuring reported figures are accurate and consistent.
- Simulate CII rating trends at regular intervals to identify vessels at risk of a D or E band in advance and prepare countermeasures.
- Review the SEEMP (Ship Energy Efficiency Management Plan) and introduce Part III corrective measures where required.
- Evaluate practical efficiency improvements such as slow steaming, route optimisation, and hull and propeller maintenance.
Ocean Grow's technical and compliance teams support managed vessels with CII data review, rating simulation and improvement planning, helping owners remain competitive under the revised requirements. Please contact us for further information.
