BIMCO to Develop Several IMO 2020-Focused Clauses

BIMCO to develop several IMO 2020-focused clauses. File Image / Pixabay

Just as there is no "one size fits all" approach to IMO 2020, a "one clause fits all" approach is also unworkable, a BIMCO subcommittee has concluded following its first meeting on the matter held September 19.

As previously reported, the group is looking at charter party clauses to address issues related to the upcoming global 0.50% sulfur cap on marine fuel set to come into force from January 1, 2020, having said earlier this month that shipowners need protecting from the consequences of charterers using non-compliant or incompatible fuel when the new rules come into force.

"There are still a number of 'unknowns' to factor into the transition from residual fuels to 0.5% sulphur content fuels, but the group expects the picture to become clearer in the months to come," BIMCO says.

The first, a "compliance clause" for which a draft has already been produced, sets out a time charterers' obligations and liabilities in providing fuel of the required sulphur content post-2020. BIMCO's Documentary Committee is using its "Fast Track" procedure that could see it published as soon as end October.

The second clause will address the "transitional period" leading up to and immediately after the January 1, 2020 start date, dealing with matters such as quantities of residual fuel on board at redelivery; tank cleaning costs; and disposal of residual fuel.

"As this is essentially a one-off event, it makes sense to deal with this as a separate issue to general compliance," says BIMCO.

A "scrubber clause" will be developed during the first quarter of 2019 and published in March/April, which will focus on cost sharing between owners and charterers for the installation of such technology.

A forth project will be a possible review of BIMCO's existing suite of time charter bunker clauses to adapt them for post-2020, if needs be.