Feature, Freight News, Sea

BIMCO Adopts FuelEU Maritime Clause

[ December 3, 2024   //   Gary G Burrows ]

            As the shipping industry faces an increase in decarbonization regulations from the EU and the International Maritime Organization, or IMO, BIMCO has added to its portfolio of carbon clauses with the FuelEU Maritime Clause for Time Charter Parties 2024.

            Adopted by BIMCO’s Documentary Committee on Nov. 25, the clause will help stakeholders to start taking measures now to align their contractual frameworks, when the FuelEU Maritime Regulation coming into force Jan. 1, 2025.

            “This clause has been eagerly awaited by the industry,” said Stinne Taiger Ivø, deputy secretary general and director of contracts at BIMCO, the association of shipowners, charterers, shipbrokers and agents. “January is almost here, and the FuelEU Maritime regulation is complex. Because of this, we have carried out several industry consultations during the drafting process to make sure that we arrived at a clause that works in practice,”

            The focus of the subcommittee has been on developing a standard clause that is workable for most scenarios and commercial relationships. For longer period charter parties, the charterers will have the flexibility to decide on their compliance strategy whether that be utilizing pooling, banking or borrowing. 

            “The FuelEU Maritime regulation will significantly impact the shipping industry, even more so than the EU Emissions Trading System. The clause we have adopted today is the result of a collaborative process between owners, charterers, P&I and legal experts and other stakeholders,” said Nicholas Fell, chair of BIMCO’s Documentary Committee.

            The company responsible for compliance with FuelEU Maritime under the new BIMCO clause is the shipowner, although it may be a third-party ship manager who has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention, or ISM. BIMCO is therefore working on developing a clause for BIMCO’s ship management agreement, SHIPMAN.

            In December last year, the Documentary Committee adopted a new Emission Trading Scheme Allowances Clause for BIMCO’s ship management agreement, SHIPMAN, and three ETS clauses for Voyage Charter Parties. Moreover, in June this year, the Documentary Committee adopted three ETS clauses for Contracts of Affreightment.

            Other published decarbonization clauses in BIMCO’s carbon clauses portfolio include the Emission Trading Scheme Allowances Clause for Time Charter Parties, CII Clause for Voyage Charter Parties, CII Operations Clause for Time Charter Parties and the EEXI Transition Clause for Time Charter Parties.

Tags: BIMCO