Bimco has developed a transition clause for existing, and future charter parties, ahead of the introduction of the Energy Efficiency Existing Ship Index (EEXI).
The EEXI — a mandatory global decarbonisation regulation from the International Maritime Organization — sets minimum efficiency standards for ships. It enters into force from January 2023.
To meet the efficiency standard many ships will have to adopt efficiency technology, or power limitation, which will slow operational speeds.
The slower operational speeds could potentially breach existing charter party terms, and put charterers in dispute with owners.
Bimco has introduced the transition clause to reduce potential disputes as the shipping industry prepares for the new regulation.
"The upcoming regulatory changes will impact the way ships can be operated in the future and require a new approach to the contractual relationship between owners and charterers," said Peter Eckhardt of German shipowner F. Laeisz, who headed the drafting team.
Bimco's EEXI clauses state that both owners and charterers acknowledge, and accept, that the vessel is required to comply with the EEXI regulation and that this may require modifications.
Under the clauses, if power limitation is adopted, then a new estimated maximum speed and fuel consumption will need to be determined by owners.
Charterers will be notified of the new vessel description by the owner. The owner has the right to take the ship out of operation to make modifications.
Future challenges
Charters will not be able to order the ship to sail at speeds that exceed the ship's description in the charter party.
Charter parties will also need to be adjusted to fit other upcoming greenhouse gas emissions regulations, such as the Carbon Intensity Indicator (CII), which measures ship efficiency over time, and will be introduced from 2023. An emissions trading system is also planned for the European Union.
"In addition to EEXI, we are also developing clauses for emissions trading systems and the CII regime to meet the future challenges for the industry," said Bimco deputy secretary general Søren Larsen.
