BIMCO publishes two 2020 sulphur clauses
Overview
BIMCO has published two sulphur content related bunker clauses which are now available on the BIMCO website and on SmartCon, BIMCO’s contract editing solution.
The two clauses are:
- BIMCO 2020 Marine Sulphur Content Clause for Time Charter Parties
- BIMCO 2020 Fuel Transition Clause for Time Charter Parties.
“The subcommittee’s objective has been to create clauses that are simple and practical, and I’m confident we’ve achieved that objective,” says Peter Eckhardt, chairperson of the drafting committee and Head of Chartering and Operations at Reederei F. Laeisz.
The 2020 Marine Fuel Sulphur Content Clause replaces the BIMCO Fuel Sulphur Content Clause 2005 and can be incorporated into time charter parties as of now. The new clause forms an integral part of BIMCO’s Suite of Standard Bunker Clauses for Time Charter Parties.
“By making the 2020 Marine Fuel Sulphur Content Clause part of the Suite of Standard Bunker Clauses, it means that we have been able to keep the revised clause short and simple. It is written as a straightforward compliance provision with the sulphur content requirements of MARPOL Annex VI,” says Grant Hunter, BIMCO head of Contracts & Clauses.
Issues relating to the specifications, grades and quality/suitability of the fuel supplied by time charterers are covered by existing standard bunker clauses in time charters, so these should not need to be amended in relation to sulphur content alone.
Transition clause
The 2020 Fuel Transition Clause is not part of the Suite of Bunker Clauses as it deals with the one-off event of switching from 3.50% sulphur content fuel to 0.50% sulphur content. The switch is a process that will need to be started before 1 January 2020 and so requires the owners and charterers to cooperate to ensure a smooth transition. The clause is designed to provide a fair allocation of responsibilities and liabilities between the owners and charterers in managing remaining stocks of fuel that will become non-compliant under MARPOL from 1 January 2020.
The clause has been specifically designed for time charter parties that will span 1 January 2020.
“We would also recommend incorporating the clause into time charter parties with redelivery very close to 1 January 2020 where delays or extensions might result in the ship redelivering after the date the change comes into force,” Hunter says.
A joint development
The 2020 Bunker Clauses have been developed by a team comprised of owners, charterers, bunker suppliers, P&I clubs and legal experts.
BIMCO is grateful to the following individuals for assisting us with this important project:
- Peter Eckhardt, F. Laeisz, Hamburg (Chairperson)
- Daniel Chu, Navig8, London
- Nicola Ioannou, Oceanfleet Shipping, Athens
- Ann Shazell, Cargill Ocean Transportation, Geneva
- Rob Crees, World Fuel Services, London
- Tiejha Smyth, North of England P&I Club, Newcastle
- Paul Dean and Alessio Sbraga, HFW, London
- Michele White, INTERTANKO, London
BIMCO will also set up a working group to examine if a scrubber clause is needed.
Both clauses, and the accompanying explanatory notes, are available on the BIMCO website in the Contracts & Clauses section:
For additional information, please contact:
Grant Hunter
Head of Contracts & Clauses
Mob: +44 778 662 7796
Email: gh@bimco.org
Feedback or a question about this information?
Posted:
10 December 2018
VPS Bunker Alerts
Veritas Petroleum Services (VPS) publish regular Bunker Alerts based entirely on fuel samples and have kindly permitted BIMCO’s Members to access this information.
The Bunker Alerts are not intended to be an evaluation of overall bunker quality in the port or area concerned, but usually highlight a specific parameter within the fuel which has raised a quality issue.
Latest ice reports for members
Latest piracy reports
Latest industry releasable threats
Related publication
BIMCO Bulletin (discontinued)
The archive of BIMCO's digital magazine which was published quarterly until mid-2021.
ELSEWHERE ON BIMCO
Contracts & Clauses
All of BIMCO's most widely used contracts and clauses as well as advice on managing charters and business partners.
Learn about your cargo
For general guidance and information on cargo-related queries.
BIMCO Publications
Want to buy or download a BIMCO publication? Use the link to get access to the ballast water management guide, the ship master’s security manual and many other publications.
About a new business partner
We can help members check new business partners. We also help to recover millions of USD (undisputed) funds every year.
