BIMCO addressing issues raised over biofuels clause, adopts ETS allowances clause for BARECON
- Ron Kotrba
- 2 hours ago
- 2 min read
The Baltic and International Maritime Council’s (BIMCO’s) documentary committee (DC) met online Feb. 25 to consider several significant contractual developments, including a new biofuel clause for time-charter parties, a new allowances clause for the Emissions Trading Scheme-BARECON (bareboat-charter party), and an updated version of the Norwegian sale form (NSF), the most widely used and internationally recognized standard agreement for the sale and purchase of secondhand ships.
BIMCO’s documentary committee has adopted the new ETS allowances clause for use with BARECON 2017 to help parties allocate emissions-compliance responsibilities under bareboat-charter agreements.
The clause aligns with existing contractual structures while supporting compliance with the EU ETS and similar emissions-trading schemes.
It is the latest addition to BIMCO’s portfolio of carbon clauses.
In addition, the biofuel clause for time-charter parties was presented for adoption at the meeting, but the committee raised a number of aspects that were considered important to address before adoption, “particularly in light of the evolving regulatory landscape and the novelty of certain biofuels and their potential impact on vessel operations,” BIMCO stated.
BIMCO added that it is essential the wording is “drafted with legal certainty and aligned with the practical realities faced by shipowners and charterers.”
This, according to the organization, reflects the thorough process required for BIMCO standard clauses to be adopted.
The subcommittee will now review the comments and consider any necessary adjustments with the aim of preparing the clause for adoption.
BIMCO’s documentary committee also adopted a revised sale form, last updated in 2012, for the sale and purchase of ships.
The Norwegian Shipbrokers’ Association and BIMCO established a joint subcommittee after NSA saw a need to revise the form to better reflect current industry practices and address strengthened regulatory and compliance requirements.
On Feb. 25, the BIMCO documentary committee adopted the revised form to address regulatory, operational and financial changes affecting ship transactions.
While largely maintaining the previously existing mechanisms, the new form includes changes to the deposit and payment mechanisms, reflecting current banking realities.
Click here for more information on the newly adopted NSF.
