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Energy Efficiency Clauses In Charter Party Agreements

Energy Efficiency Clauses In Charter Party Agreements

09/04/2021 • Under: Sin categoría


As a general rule, when a vessel is disembarked from a charter on time, the charter company requires that the vessel be delivered with approximately the same amounts of «high sulphur» and «low sulphur fuel» as on board during delivery. The owner is usually obliged to purchase this fuel at a certain price (often the same price as when delivery). The experience of Tiejha`s trial began in 2000 when she joined a utility company to process claims. In 2002, she joined the British law firm Ward Hadaway and in 2004 qualified as a lawyer specializing in commercial litigation and the handling of high court proceedings and Alternative Dispute Resolution. In November 2008, she joined North`s FD-D department, supporting North`s MEPs and MEPs in FD-D in particular, and regularly makes presentations and training on a number of FD-D themes. Tiejha was promoted to the management team in 2016. She is a representative of FD-D in North`s 2020 expert group and a member of the BIMCO 2020 Charterparty Clause subcommittee. The challenges posed by the global sulphur ceiling are not exclusively technical. The new limit values are expected to affect contracts and charter parties. Forward-looking planning could now help avoid painful clashes in the future. Savings from the energy efficiency of shipowners have decreased over time. It is unlikely that the parties to the charter in place will explicitly state who must pay for a vessel to have an EGCS installed. If the charterer is likely to benefit from fuel savings, there may be room for a trade agreement to pay.

It is likely that the ban on the transportation of non-compliant fuels will come into effect on March 1, 2020 for vessels that do not have exhaust treatment systems (EGCS or «Scrubbers»). Non-compliant fuels must be removed to avoid fines or detention of the vessel. Assuming that this fuel is not consumed before 01.01.2020, the tenant who is required to arrange or pay for the removal of this fuel depends on the text of the charterer, so it is important that this be taken into account in the design phase. On-time charter parties will need special attention and further challenges are expected for vessels already in long-term charter lots covering the January 1, 2020 deadline. Unfortunately, there is not a single «magic» charter clause that should be asked with all those who might occur. All bunker clauses need to be reviewed with certainty, but other clauses may also need to be considered depending on the chosen compliance method. In light of the situation, the law firm Hill Dickinson described the key problems that shipowners face as a result of previous outbreaks such as SARS and Ebola, and stressed that the shipping industry must be prepared for charter problems.

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