FuelEU Maritime Clause for SHIPMAN published

Published: 19 December 2024

We are thrilled to announce BIMCO's adoption of the new FuelEU Maritime Clause for SHIPMAN 2024. The clause arrives ahead of the implementation of the FuelEU Maritime Regulation which will enter into force on 1 January 2025. The adoption of the clause following the recent adoption of the FuelEU Maritime Clause for Time Charter Parties 2024 in November, is part of BIMCO’s continued commitment to support the shipping industry as it navigates the growing wave of decarbonisation regulations from the European Union and the International Maritime Organization (IMO).

The FuelEU Maritime Regulation is a part of the EU’s “Fit for 55” package intended to fight climate change by reducing greenhouse gas emissions in shipping. It aims to achieve a reduction in the EU’s net greenhouse gas emissions by at least 55% by 2030. It supplements the EU Emissions Trading System, CII ratings and other decarbonisation initiatives. It is a complex regulation that requires immediate attention and careful planning from all industry stakeholders. Recognising this, BIMCO has taken proactive steps to ensure the clause is practical, commercial and balanced between the owners and the managers. The clause was officially adopted by BIMCO’s Documentary Committee on 19 December.

The adoption of this clause is the result of a comprehensive collaborative process between owners, managers and legal experts. The clause is designed to be flexible and adaptable to the varying needs of industry players, offering solutions for most scenarios and commercial relationships. The parties may wish to consider amending the clause to suit their particular circumstances.

Our Deputy Secretary General and Director of Contracts, Stinne Taiger Ivø, shared her insights on the development, "Our ship management agreement is an important document for BIMCO and we are very pleased to be able to provide contractual solutions that can assist the industry to adapt to the new regulatory landscape."

Under the clause, the parties acknowledge that the vessel shall comply with the regulation while the third-party ship managers who take up responsibilities under the International Management Code for the Safe Operation of Ships and Pollution Prevention (ISM) are the responsible compliance entity though they do not have control over the supply of fuels and energy. This calls for a contractual solution where the owners are to provide security corresponding to the managers’ exposure while, in return, maintaining full control over banking, borrowing and pooling.

Over the past year, BIMCO has also adopted several other environmentally-focused clauses, including the Emission Trading Scheme Allowances Clause for SHIPMAN, and three ETS clauses for Voyage Charter Parties and Contracts of Affreightment. Our portfolio now includes a range of decarbonisation clauses, showcasing our commitment to supporting the shipping industry's transition to a greener future.

You can view the FuelEU Maritime Clause for SHIPMAN 2024 together with accompanying Explanatory Notes.

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