With FuelEU Maritime regulations coming into effect from 1 January 2025, BIMCO, the world’s largest maritime trade association, has added a new decarbonisation clause to its portfolio of carbon clauses.
BIMCO’s Documentary Committee has added “FuelEU Maritime Clause for Time Charter Parties 2024” to its portfolio, which has been specifically created for incorporation into time charter parties. With the introduction of the new clause, BIMCO’s representatives have indicated that international shipping should commences preparation for the introduction of FuelEU Maritime now.
“This clause has been eagerly awaited by the industry,” Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO, commented. “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.”
FuelEU Maritime regulations will impose limits on the annual average GHG intensity of the energy used by ships operating within the EU’s boundaries. Part of the EU’s Fit For 55 package, they are intended to dramatically reduce the greenhouse gas (GHG) emissions (GO2, GH4 and N2O) produced by shipping.
The company responsible for compliance with FuelEU Maritime under the new BIMCO clause is the shipowner. However, BIMCO’s representatives make clear that this may be a third-party shipmanager 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 (ISM). As a result, BIMCO is developing a clause for BIMCO’s ship management agreement, called “SHIPMAN”.
Nicholas Fell, Chair of BIMCO’s Documentary Committee, said: “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.”
In December 2023, BIMCO’s Documentary Committee adopted a new Emission Trading Scheme Allowances Clause for BIMCO’s ship management agreement, SHIPMAN, as well as three ETS clauses for Voyage Charter Parties. In June 2024, the Documentary Committee adopted three ETS clauses for Contracts of Affreightment.
BIMCO’s carbon clauses portfolios also 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.
Source: BIMCO