The implementation of IMO 2023 is set to make major changes. Through utilizing energy efficiency indicators such as the Energy Efficiency Existing Ship Index (EEXI), the Ship Energy Efficiency Management Plan (SEMP) and a vessel's Carbon Intensity Indicator (CII), commercial and non-commercial vessels are subject to a mandatory reduction in carbon emissions.  EEXI is a rating system that assesses the energy performance of existing ships based on energy consumption data and other key metrics such as speed, power and engine size. Non-compliant vessels that receive an EEXI rating below a certain threshold may be subject to IMO 2023 penalties and restrictions and need to make modifications to engines or systems.

As a ship-specific plan, SEEMP is document that lays out the plan to improve a vessel's energy efficiency in a cost-effective way. Although each one is unique to each ship, the plans should be laid out with practicality that allows owners and operators to manage operations and improve those efficiency parameters over time. CII is a new global shipping carbon intensity level indicating tool used to rank and monitor the efficiency of individual ships. It links together the GHG emissions, and the amount of cargo carried, along with the distance travelled ratio. The CII rating threshold will become stricter over time and will determine the annual carbon reduction factor needed to ensure compliance. Starting this year, every vessel will receive a grade from A to E and ships with three years of D grades or one year of an E grade will be put into a corrective action plan.

By the end of 2022, it was required that a determination was to be made about a ship’s carbon intensity via a SEEMP, organizing and preparing the necessary plan that improves the ship’s efficiency through tech and other operational improvements that make an impact.  Investments in energy efficient technology will help aid owners and operators with compliance with all IMO 2023 regulations. Unfortunately, more costs in energy efficiency might bring higher overall shipping costs and to reduce fuel consumption, and improve efficiency further, shipping speeds may slow down. The premise of IMO 2023 is a true promotion of greater energy efficient efforts and a positive step in ocean freight.