BIMCO Working on IMO2020 Charter Party Clause

by Ship & Bunker News Team
Tuesday July 3, 2018

BIMCO says is has established a subcommittee for the development of a charter party clause that will address issues related to the upcoming "IMO 2020" global 0.50% sulfur cap on marine fuel set to come into force from January 1, 2020.

"This project will be given high priority due to the increasing interest from the industry to address the contractual issues that may arise under charter parties. The aim is to have a first draft clause ready during the autumn," BIMCO says.

Among the issues that the subcommittee will discuss are:

  • allocation of costs for the removal of non-compliant fuels
  • obligation on time charterers to provide fuel of the correct specification at redelivery
  • the taking over of bunkers at redelivery of a ship at the end of a time charter party
  • allocation of cost and time for penalties and delays in the event of non-compliance
  • allocation of cost and time for the installation of scrubbers

"Contracts will need clear wording allocating responsibilities and liabilities for providing appropriate fuel and for potential non-compliance. Scrubber fitted ships may offer time charterers savings on #bunkers, but at a high capital cost to owners - should the costs and the benefits be shared for long term charters? Lots of issues to consider," Grant Hunter, BIMCO Head of Contracts and Clauses, commented in a post on LinkedIn.

A first meeting will take place on 19 September 2018 in BIMCO House, Denmark.

Ship & Bunker News Team
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