17 September 2018
The sulphur cap of 0.50% coming into force on January 1 2020 has wide implications for the entire maritime sector and beyond. BIMCO will address contractual, commercial, regulatory and technical issues to assist our members in navigating the complex implementation of the new regulation as a priority issue. This section will contain articles and relevant information to our members on this key topic.
26 July 2019
On 22 July 2019 China Maritime Safety Administration (MSA) issued the “Implementation Scheme of the IMO 2020 Sulphur Cap”.
03 May 2018
A “Power panel” debate on the dry bulk and oil tanker shipping markets, including the 2020 global sulphur cap experiment. Sign up here
10 September 2018
The new BIMCO magazine the “Bulletin” is out and zooming in on challenges and questions asked ahead of the 2020 sulphur cap. “Sulphur cap consequences will draw focus for two years,” BIMCO’s Secretary General, Angus Frew, points out in his foreword. Also, read the latest market analysis by Peter Sand and read why shipowners urgently need a fuel-management plan.
04 September 2018
Technical, regulatory and financial aspects of the 2020 global fuel sulphur cap regime understandably loom large in people’s minds. But the importance of the contractual dimension should not be overlooked. BIMCO is forging ahead with an all-encompassing 2020 Clause for charter parties, which should be published in November.
22 January 2019
Free seminar on 15 February 9:00-10:30 on key issues impacting shipping today such as challenges related to the IMO 2020 Sulphur Cap, and how BIMCO can support your business.
16 August 2019
Alessio is a Partner at the London office of International law firm, HFW. He specialises in international commercial dispute resolution in the marine and offshore sectors, and has over 12 years' experience of advising in respect of charterparties, bills of lading, sale contracts, shipbuilding, MOA, grounding, unsafe port, off-shore (FSO, FPSO, rig, floating accommodation units), bunker and cargo disputes. He also advises regularly on international maritime regulatory issues, including those relating to MARPOL.
Alessio has an international practice, which involves him advising and representing the main stakeholders in the physical shipping and off-shore chains across the globe. This includes shipowners, charterers, freight forwarders, shippers, bunker suppliers, P&I clubs and underwriters, as well as cargo owners, banks and traders. He handles large, complex and multi-jurisdictional disputes, and litigation in both the English High Court and in arbitration.
More recently, Alessio was a member of the BIMCO sub-committee responsible for drafting the organisation's standard time charterparty clauses in response to the 2020 sulphur cap and related sulphur emission regulations, and is currently advising extensively on the legal and commercial implications arising out of these new regulations to shipowners, charterers, ship managers, P&I clubs and hull underwriters. He also presents regularly on behalf of BIMCO on this topic.
Alessio is qualified in England and Wales, and speaks fluent Italian.
19 August 2019
Christian Bækmark Schiolborg is Manager, Maritime Technology and Regulation at BIMCO. He is responsible for analysing regulatory developments, mainly on the issues of IMO 2020 sulphur cap, fuel safety and reduction of greenhouse gases from ships. Furthermore, he represents BIMCO at international organisations such as the International Maritime Organisation (IMO) and the International Organization for Standardization (ISO) on aforementioned matters.
Christian is educated as dual officer (deck officer and marine engineer) and has sailed on container ships and offshore vessels.
Before joining BIMCO, he worked 6 years with the Danish Maritime Authority. Here he began as ship surveyor, became port state control officer and ended as special adviser in technical regulation in the department for maritime regulations and legal affairs, where he represented Denmark in IMO on different technical issues and was Head of the Danish delegation in the Sub-committee on Ship Systems and Equipment.
18 July 2018
The 2020 0.50% sulphur limit for fuel oil used outside emission control areas will undoubtedly create operational issues for crews onboard ships. The International Organization for Standardization (ISO) has now issued a letter in this regard rebutting these claims.
23 May 2019
These Q&As have been produced jointly by INTERTANKO and BIMCO with the assistance of the North of England P&I Club. They focus on the potential contractual issues that parties should be aware of when chartering scrubber-fitted ships. The objective is to highlight and address the relevant clauses and concepts charterers and owners should take into consideration during their negotiations.
Much has been written about the introduction of the ‘Global Sulphur Cap’ of 0.50% m/m (mass for mass) for fuel oil under MARPOL Annex VI which comes into force on 1 January 2020; also the 0.10% m/m sulphur limit within emission control areas. Many owners have also already chosen their route to MARPOL Annex VI Regulations 14.1, 14.3 and 18 compliance which can be achieved in one of two ways:
By using fuel oil with a sulphur content that does not exceed 0.50% m/m, or 0.10% m/m while the ship is operating (‘low sulphur fuel oil’).
By using ‘equivalents’ which are alternative methods that are at least as effective in terms of emission reductions as using low sulphur fuel oil. ‘Equivalents’ includes the installation of exhaust gas cleaning systems, or ‘scrubber(s)’. See MARPOL Annex VI Regulation 4 and the 2015 Guidelines for exhaust gas cleaning systems, adopted by resolution MEPC.259(68) (currently under review). Fuel oil cleaned by scrubbers will have a sulphur content above 0.50% m/m (‘high sulphur fuel oil’).
Both BIMCO and INTERTANKO are neutral as to which option should be chosen. It is up to each individual owner to decide which option is best for their ship’s operation after conducting a proper assessment of the pros and cons of each option including safety and operational issues, price differentials between low and high sulphur fuel oil, fuel availability, capital investment, payback time, trading patterns and charter rates. International, regional and national regulatory requirements may also play a part in this decision.
However, both Associations have been faced with a series of questions from Members who have fitted or are contemplating fitting scrubbers concerning how the use of a scrubber may impact on their contractual arrangements. These questions on both time and voyage chartering issues form the basis of the Q&A section below. They do not address questions relating to the technical and operational impact of installing a scrubber. Such information is available from numerous online sources.
Both Associations have decided, for the time being at least, not to develop a “standard” scrubber clause for time or voyage charter parties. The decision to install and operate a scrubber is seen primarily as a matter of commercial negotiation between owners and charterers relating to the division of costs and benefits. The need for a clause will, however, be kept under regular review.
We suggest that you consider the recommendations in this document to assess the need for a bespoke scrubber clause and/or any amendments to existing charter party terms. You may need to seek independent legal advice on a case-by-case basis to suit your particular chartering arrangements and trading patterns.
This document will be updated to include any new Q&As which will affect the contractual issues for scrubber-fitted ships.
BIMCO and INTERTANKO - 23rd May 2019