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SAFETY4SEA

BIMCO Committee adopts CII Operations Clause for time charter parties

by The Editorial Team
November 18, 2022
in Emissions
bimco quiet enjoyment

Credit: BIMCO

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The complex CII regulations, effective from January 2023, are expected to significantly impact the future operation of ships. Shipowners and charterers must embrace new ways to co-operate, and new clauses for charter parties will be needed to help owners and charterers succeed. In that regard, the BIMCO Documentary Committee has adopted a CII Operations Clause for Time Charter Parties which will help the industry implement these new requirements.

The starting point for the new CII clause is that a time charterer should take responsibility for a ship’s emissions because the charterer makes the relevant decisions on the operation of the ship. When entering into the charter party, or incorporating the clause into an existing charter party, the parties are to agree on a specific CII to be achieved each year.

The subcommittee comprised ship owners, charterers and legal and insurance experts. After more than eight months of deliberation and consultation, we have arrived at a clause which serves as an excellent starting point for negotiations for owners and charterers and which is workable in practice. The new clause will be reviewed as the underpinning regulatory regime develops,

…says Nicholas Fell, Chairperson of BIMCO’s Documentary Committee.

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As the industry faces more regulations from the IMO and the EU aimed at reducing shipping’s CO2 emissions, the need for new contracts and clauses increases. In December 2021, BIMCO published an EEXI Transition Clause and at the end of May 2022, BIMCO released a new Emissions Trading System Allowances (ETSA) Clause for Time Charter Parties in response to the European Union’s intention to include shipping emissions in the EU’s emissions trading system, the ETS.

The CII clause is the latest addition to BIMCO’s suite of carbon clauses for time charter parties. The subcommittee will now continue its work to develop further clauses (such as a CII clause for voyage charter parties) to assist charterers and owners responding to new regulatory requirements, regardless of whether they come from the IMO, EU, or elsewhere,

..says Stinne Taiger Ivø, Director, Contracts & Support at BIMCO.

BIMCO Committee adopts CII Operations Clause for time charter partiesBIMCO Committee adopts CII Operations Clause for time charter parties
BIMCO Committee adopts CII Operations Clause for time charter partiesBIMCO Committee adopts CII Operations Clause for time charter parties
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