The IMO Carbon Intensity Indicator isn't just a rating - it's a deadline. Ships rated D for 3 consecutive years or E for just 1 year must submit corrective action plans. From 2026, non-compliant vessels risk losing their Statement of Compliance.
The Carbon Intensity Indicator explained
The Carbon Intensity Indicator (CII) is an IMO regulation that came into effect January 2023. It measures a ship's carbon efficiency - how much CO2 it emits per cargo-mile transported.
Ships are rated A (best) to E (worst) based on their operational carbon intensity compared to reference baselines for their ship type.
CII thresholds get 2% stricter every year through 2030. A ship rated C today could be D next year without any operational changes.
What happens when your ship fails CII compliance
Ships rated D for 3 consecutive years must submit a corrective action plan showing how they will achieve at least a C rating.
Ships rated E for just 1 year must immediately submit a corrective action plan. This is the most critical rating.
From 2026, ships failing CII may not receive SoC - making them legally unable to trade internationally.
Major charterers already reject D/E rated vessels. ESG-conscious shippers won't book them.
P&I clubs and insurers are increasing premiums or denying coverage for non-compliant vessels.
With retrofit costs at $2-5M+, many owners find scrapping more economical than compliance.
Industry research shows alarming trends
1 in 3 vessels at risk - Clarksons Research
Most affected segment - Lloyd's Register
Industry-wide compliance gap
"One-third of vessels will be rated D or E if operational behavior continues unchanged."
"12-25% of container vessels could be rated E by 2026 without significant operational changes."
"Retrofitting costs $2-5M+ per vessel. For many older ships, scrapping becomes more economical than compliance."
"Ships must improve operational efficiency or face increasingly severe commercial and regulatory consequences."
Operational optimization is the fastest path to better ratings
Know when your berth will be ready 24-72 hours ahead. Plan optimal speed before departure.
Slow steaming when you know you'll wait. Less fuel burned = better CII = lower costs.
Arrive exactly when berth is ready. No waiting at anchor - which destroys your CII score.
Start improving your CII rating today with AI-powered voyage optimization.