As we approach the end of 2024

As we approach the end of 2024, we observe that dry bulk prices have increased significantly this year, reaching their year-to-date highs during Q3 2024.

BIMCO adopts FuelEU Maritime clause

On 1 January 2025, the FuelEU Maritime Regulation will come into force. The regulation may require stakeholders to start taking measures now and the BIMCO FuelEU Maritime Clause for Time Charter Parties 2024 is developed to help stakeholders align their contractual frameworks. The clause was adopted by BIMCO’s Documentary Committee on 25 November.

As the shipping industry faces an increase in decarbonisation regulations from the EU and the International Maritime Organization (IMO), BIMCO continues to add to its portfolio of carbon clauses to support the industry. The latest addition to the portfolio is the FuelEU Maritime Clause for Time Charter Parties 2024 which is designed for incorporation into time charter parties.
“This clause has been eagerly awaited by the industry. January is almost here, and the FuelEU Maritime regulation is complex. Because of this, we have carried out several industry consultations during the drafting process to make sure that we arrived at a clause that works in practice,” says Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO.
The focus of the subcommittee has been on developing a standard clause that is workable for most scenarios and commercial relationships. For longer period charter parties, the charterers will have the flexibility to decide on their compliance strategy whether that be utilising pooling, banking or borrowing.
“The FuelEU Maritime regulation will significantly impact the shipping industry, even more so than the EU Emissions Trading System. The clause we have adopted today is the result of a collaborative process between owners, charterers, P&I and legal experts and other stakeholders,” says Nicholas Fell, Chair of BIMCO’s Documentary Committee.
The company responsible for compliance with FuelEU Maritime under the new BIMCO clause is the shipowner. In reality, however, it may be a third-party shipmanager who has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM). BIMCO is therefore working on developing a clause for BIMCO’s ship management agreement, SHIPMAN.
In December last year, the Documentary Committee adopted a new Emission Trading Scheme Allowances Clause for BIMCO’s ship management agreement, SHIPMAN, and three ETS clauses for Voyage Charter Parties. Moreover, in June this year, the Documentary Committee adopted three ETS clauses for Contracts of Affreightment.
Other published decarbonisation clauses in BIMCO’s carbon clauses portfolio include the Emission Trading Scheme Allowances Clause for Time Charter Parties, CII Clause for Voyage Charter Parties, CII Operations Clause for Time Charter Parties and the EEXI Transition Clause for Time Charter Parties.