BIMCO’s 2020 Bunker Clause working group is working on two key clauses addressing the global switch to 0.5% sulphur content fuel on 1 January 2020. The “2020 Global Marine Fuel Sulphur Content Clause”, which is a general compliance provision, will be put forward for adoption by BIMCO’s Documentary Committee on 13 November.
The drafting team has also prepared a first draft of a clause dealing with the transition to 0.5% sulphur limit– the “2020 Transitional Fuel Clause”. The 2020 Transitional Fuel Clause will be discussed by BIMCO’s Documentary Committee on 13 November.
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The 2020 Transitional Fuel Clause recognises that owners and time charterers will have to cooperate in the run up to 1 January 2020 to manage fuel supplies to minimise the amount of non-compliant fuel onboard the ship on the coming in to force date.
Any non-compliant fuel on board belonging to the charterers after 1 January 2020 will need to be discharged from the ship and disposed of at charterers’ risk, time and cost latest by the 1 March 2020 carriage ban date, or by the redelivery date – whichever comes first. It will be the owners’ responsibility to clean empty fuel tanks to prepare them to receive 0.5% sulphur content fuel.
The clause emphasises the need for cooperation in planning and preparation to ensure a smooth as possible transition to the new low sulphur fuel. A requirement to segregate fuels of different grades is a common provision in most time charter parties.
However, there are concerns that new 0.5% sulphur content fuel may have compatibility issues even between stems produced by the same oil company. To minimise the risk of incompatibility between stems of 0.5% sulphur fuel, the clause requires each supply of fuel to be kept separate – even if it is of the same grade and specification,
…explains BIMCO’s Mette Kronholm Fraende.
