With the amendment on MARPOL Convention (MARPOL Carbon Intensity Regulations) on the 1st of November 2022, coming into effect from 1 January 2023, Owners and Charterers will need to collaborate and cooperate to manage the IMO objective to reduce carbon emissions.
The newly developed BIMCO CII Clause sets out a way forward in a time charter context, where Charterers are responsible for the operation of the vessel.
On 16 November 2022, the BIMCO Documentary Committee approved the “CII Operations Clause for Time Charter Parties” which is now ready for incorporation into time charterparties. The Clause aims to apportion the risks and responsibilities between the Owners and the Charterers. In this regards the following aspects are noted:
- The obligation to comply with the MARPOL Carbon Intensity Regulation rests primarily with the Charterer in regards to its operation of the vessel.
- There is a general duty of good faith on the parties to improve the efficiency of a vessel and collect information necessary to monitor compliance.
- The Owner is required to exercise due diligence and make sure the vessel and its machinery is compliant with the MARPOL Carbon Intensity Regulations/SEEMP (Ship Energy Efficiency Management Plan), which subjects to the provisions provided in the charterparty.
- The Owner shall provide the Charterer with details of the CII attained, along with fuel and distance covered in that calendar year.
- In case of breach by the Charterers, of any of the provision of the clause, the Owner shall have the right to claim damages in case of any losses, damages, liabilities, claims, fines, costs, expenses, actions, proceedings, suits or demands suffered by the Vessel and/or the Owners.
We recommend that members consider incorporating the clause into any future time charter party agreements.
For the full version of the BIMCO CII Operations Clause for Time Charter Parties 2022 we refer members to the relevant page on the BIMCO website as follows:
We would also like to refer members to a previously published report on this subject on our website:
For further guidance and questions on the BIMCO CII Clause and its application, members are kindly invited to contact NNPC at email@example.com.