The FuelEU Maritime Regulation will go into force on January 1, 2025, compelling maritime sector players to begin preparations immediately. To help with this transition, BIMCO created the FuelEU Maritime Clause for Time Charter Parties 2024, which was officially approved by BIMCO’s Documentary Committee on November 25, 2024. This clause is intended to assist stakeholders in bringing their contractual arrangements in line with the new law.
As the shipping sector faces increased decarbonization laws from the European Union and the International Maritime Organization (IMO), BIMCO’s repertoire of carbon-related clauses grows. The most recent addition, the FuelEU Maritime Clause for Time Charter Parties 2024, is designed for use in time charter agreements.
Furthermore, the subcommittee worked to develop a standard language that could be applied to a variety of contexts and economic agreements. Charterers have more freedom in their compliance strategy during extended charter periods, whether through pooling, banking, or borrowing tactics. The new clause makes the ship owner accountable for maintaining compliance with the FuelEU Maritime Regulation. However, in reality, this responsibility may be delegated to third-party ship management who has agreed to the International Management Code for the Safe Operation of Ships and Pollution Prevention. To remedy this, BIMCO is now drafting an equivalent clause for their SHIPMAN ship management agreement.
This project builds on past work by BIMCO’s Documentary Committee. In December 2023, the committee included an Emission Trading Scheme (ETS) Allowances Clause in the SHIPMAN agreement, as well as three ETS clauses for Voyage Charter Parties. In addition, in June 2024, the committee approved three ETS terms for affreightment contracts.
Other published decarbonization provisions in BIMCO’s carbon clauses portfolio include the Emission Trading Scheme Allowances Clause for Time Charter Parties, the CII Clause for Voyage Charter Parties, the CII Operations Clause for Time Charter Parties, and the EEXI Transition Clause.
