Overview: The maritime industry is navigating a sea of new regulations from the International Maritime Organization (IMO) and the European Union (EU), all while facing growing pressure to decarbonize. In response, BIMCO, the world's largest international shipping association, has introduced a groundbreaking Carbon Intensity Indicator (CII) Clause specifically designed for Voyage Charter Parties. This significant addition to BIMCO's carbon clause portfolio was recently approved by BIMCO's Documentary Committee.
Decarbonization Drive: With the global maritime sector striving for decarbonization, the demand for innovative contracts and clauses has surged. BIMCO is dedicated to ensuring that its contracts and clauses remain effective and in alignment with the evolving regulatory landscape, affirms Nicholas Fell, Chairperson of BIMCO’s Documentary Committee.
CII Clause Evolution: In November 2022, the BIMCO Documentary Committee adopted the CII Operations Clause for Time Charter Parties in anticipation of the IMO's carbon intensity indicator (CII) regulation, which came into effect on January 1, 2023. Following this achievement, a new subcommittee was assigned the task of crafting a CII Clause tailored for Voyage Charter Parties, which has now been officially accepted.
Driving Collaboration: These CII Clauses are tailored to foster collaboration and provide assurance to both shipowners and charterers as they adapt to emerging regulations. They will play a crucial role in reshaping the maritime industry to ensure compliance and reduce emissions effectively.
Key Features: The new CII Clause primarily focuses on course adjustments and speed reductions, complemented by elements involving data sharing. Throughout the development process, drafts of the clause were extensively reviewed by the Documentary Committee and received valuable input from a sounding board comprised of charterers and traders, as highlighted by Stinne Taiger Ivø, Director, Contracts & Support at BIMCO.
Additional Carbon Clauses: BIMCO's commitment to emissions reduction also includes other notable carbon clauses such as the EEXI Transition Clause, introduced in December 2021, and the Emissions Trading System Allowances (ETSA) Clause for Time Charter Parties, unveiled in May 2022.
About BIMCO: BIMCO stands as the preeminent international shipping association, boasting a membership of over 2,000 entities across 130 countries. This collective represents a substantial 60% of the world's total tonnage and includes ship owners, operators, managers, brokers, and agents. BIMCO is a non-profit organization devoted to advancing the interests of the global shipping community.