Nearly all HMM ships meet int'l CO2 rules

South Korea’s No. 1 container transportation and shipping service HMM Co., Ltd on Monday said the Carbon Intensity Indicator (CII), which measures greenhouse gas emissions, rated 66 (99%) of the company’s 67 directly owned ships suitable for operation with preliminary grades of A to D.

An environmental regulation of the International Maritime Organization (IMO), the CII is a numerical value obtained by indexing the volume of CO2 emitted when transporting a ton of cargo per nautical mile (1,852 m) using ship operational information such as fuel consumption and operating distance.

Based on this year’s operating performance, the IMO will apply CII ratings from next year to restrict the operation of vessels emitting over a certain amount of carbon. Thus a vessel with a capacity of 5,000 tons or more worldwide will be graded A to E based on operating information over a year.

Ships graded D for three consecutive years or E for a year could face operating limits until a corrective plan for grade C is approved.

The IMO said 35% of the vessels owned by global shipping companies will be graded A-B and another 35% D-E. HMM, however, had 69% of its ships rated A or B and just 13% D or E.

The company will improve the rating of its E-rated bulk carrier by adjusting the vessel’s speed.

“We will actively respond to CII regulations by expanding our adoption of biofuel,” an HMM source said.

Write to Mi-Sun Kang at misunny@hankyung.com