BIMCO Seeks Feedback on CII Clause Amid Charterer Criticism

The organisation said it has received both positive and negative feedback. File Image / Pixabay

Shipping industry body BIMCO has been seeking feedback on its time charter contract clause covering the carbon intensity (CII) regulation amid criticism from parts of the industry.

The organisation announced the clause in November, setting out how CII compliance can be managed for chartered vessels.

From January 1 all vessels larger than 5,000 GT will have calculated for them a CII rating based on historical data submitted to the IMO. The rating is a calculation of the CO2 the vessel emitted per unit of cargo capacity per nautical mile.

The rating will come as a letter between A and E, with A at the top of the scale, and ratings will be determined on an annual basis. Ships receiving a D rating for three years or an E rating for a single year will need to implement a ship energy efficiency management plan setting out their plans to improve their performance.

Under the BIMCO clause, charter parties will agree in advance a specific CII rating to be achieved each year.

A group of 23 major charterers wrote an open letter to the organisation this week, saying the new clause places a disproportionate burden on charterers.

BIMCO has held talks and met with members and stakeholders to seek feedback on the clause, it said in a statement on its website on Wednesday.

"We have received constructive comments, both positive and negative, from many of our members," David Loosley, secretary general of BIMCO, said in the statement.

"This insight is invaluable for already published clauses and the development of future clauses.

"We will continue to seek solutions to help our members operate commercially in a complex regulatory environment."

The organisation also suggested some may not fully understand the regulation.

"Following recent dialogue with members, BIMCO understands that many stakeholders are still struggling to interpret the complexities of the CII regulation," BIMCO said.

"BIMCO is offering comprehensive training along with free webinars to explain how the clause works in practice and how to understand the CII regulation."