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Amid an increasingly stringent regulatory environment, where non-compliance can lead to financial penalties, reputational harm or even restricted access to certain ports, ship agents are key to smooth, compliant operations. They help to bridge the gap between vessel owners and the complex regulatory frameworks at ports, reducing operational burdens and enabling vessel operators to focus on sustainable and profitable shipping practices.
As part of the International Maritime Organisation (IMO) strategy to reduce shipping’s greenhouse gas (GHG) emissions, regulations like the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII) are creating an increasingly tightening regulatory environment in which ships will have to meet progressively higher benchmarks to reduce their environmental impact.
Bulk bucks the trend
The bulk carrier market has made notable improvements to its carbon credentials over the past few years, particularly in its CII rating.
According to a new White Paper report from Veson Nautical, the number of bulk carriers rated either A or B in accordance with the CII Banding rose to 35.1% of the global fleet by the end of 2023, up from 20.9% in 2021. Likewise, the number of lower ranking bulkers in the D or E categories fell to 33.3% from 44.5% over the same period.
The White Paper also notes the improvement of bulk carriers’ operational efficiency. The median Annual Efficiency Ratio improved 6% from 2019 to 2023 despite a number of major disruptions impacting shipping routes, including global port congestion, changing trade dynamics, disturbances in the Suez and Panama Canals and the ripples caused by geopolitical events. Instead, they pushed the dry bulk sector to explore and open new markets for trade, most notably with China’s lifting of its Australian coal import ban.
All these signs are positive developments for the wider maritime sector.
Slow steaming
One of the leading contributors to this trend is the growing use of slow steaming.
Slow steaming is an effective way to enhance a vessel’s CII rating. By operating at reduced speeds, vessels are able to lower their fuel consumption and CO₂ emissions, which is particularly beneficial for larger and older ships struggling to meet CII requirements.
However, it can extend voyage times by up to 20%, impacting ports that operate on a first-in-first-out (FIFO) principle which motivates vessels to get to ports as soon as possible to join the queue for berthing space. Slow steaming can lead to greater port congestion and longer port operations.
Just-In-Time Arrivals
To meet these challenges, Just-In-Time Arrivals (JIT) have gained significant momentum over the past few years. This system not only secures berthing space and eliminates a potential wait outside the port, it boosts effective planning which reduces emissions and improves efficiency. JIT also enables ship agents to better plan the various services they provide for vessels under their care.
“During any port call, agents collect a great deal of information from multiple sources. They also act as a link to ensure delivery of bunker fuels and husbandry materials, for example, and oversee all aspects of crew changes and more,” says Lars Hardeland, GAC’s Group Commercial Director – Shipping.
“JIT enables us to plan more effectively and ensure our people and resources are in the right place at the right time. We know when the vessel will arrive and when the vessel is expected to leave. This means we can put berthing and port plans together more effectively, making the vessel’s port call smoother and more cost-effective.”
Ship agents also serve as local experts with the knowledge of the laws and regulations governing the port and region in which they operate, including the IMO’s carbon emission regulations on day-to-day operations.
“There is no doubt that slow steaming is a net positive for our industry, reducing vessel emissions and improving efficiency,” adds Lars. “However, it is important to recognise the potential ramifications it can have on port operations. It is critical for ship managers and charterers to communicate effectively with their agents about any potential delays or impacts to port arrival times.
“The IMO’s CII and EEXI regulations are likely to significantly influence operational strategies for vessels going forward.
“At GAC, we understand our customers' desire for efficient port operations while supporting emission regulations. It is a tricky tightrope to walk but we are here to offer a helping hand.”
