BIMCO, the world’s largest international shipping association, has adopted a new CII clause for voyage charter parties to support the industry’s decarbonization path.
As informed, the clause was adopted by BIMCO’s Documentary Committee on 11 October and is the latest addition to BIMCO’s portfolio of carbon clauses.
The shipping industry is facing an increase in new regulations from the International Maritime Organization (IMO) and the European Union (EU) and an increase in the urgency to decarbonize.
“As the shipping industry works towards decarbonisation, the need for new contracts and clauses increases. We are working constantly to ensure that BIMCO’s contracts and clauses are fit for purpose as the regulatory landscape changes,” said Nicholas Fell , Chairperson of BIMCO’s Documentary Committee.
In November 2022, BIMCO’s Documentary Committee adopted the CII Operations Clause for Time Charter Parties ahead of the IMO’s carbon intensity indicator (CII) regulation which entered into force on 1 January 2023.
After its publication, a new subcommittee was tasked with developing a CII Clause for Voyage Charter Parties which has now been adopted.
These clauses aim to facilitate collaboration and provide certainty between shipowners and charterers as new regulations come into force, changing the way the industry operates to assist compliance and cut emissions.
“The new CII clause focuses on course adjustment and speed reduction and includes commercial elements such as data sharing. Throughout the process, drafts were shared with the Documentary Committee and a sounding board consisting of charterers and traders for consultation and comments,” stated Stinne Taiger Ivø , Director, Contracts & Support at BIMCO.
Other carbon clauses from BIMCO include the EEXI Transition Clause, published in December 2021, and the Emissions Trading System Allowances (ETSA) Clause for Time Charter Parties, published at the end of May 2022.