BIMCO Publishes ‘Game-changing’ EEXI Transition Clause

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According to a recent article published on BIMCO website, ahead of the implementation of the IMO’s Energy Efficiency Existing Ship Index (EEXI) in January 2023, BIMCO has drafted an EEXI Transition Clause which can be used in existing and future charter parties.

Ships efficiency to be improved

As BIMCO explains, the new regulation will require existing ships to improve their efficiency to be approximately in line with the Energy Efficiency Design Index (EEDI) requirement for newbuilds. EEXI certification for a ship may mean applying technical modifications, such as through engine power limitation (EPL) or shaft power limitation (SHAPOLI).

New clause addresses

The new clause addresses the relationship between shipowners and charterers in the context of compliance with the new regulation where technical modifications and logical amendments to charter party descriptions and warranties are required.

Contractual relationship

‘The upcoming regulatory changes will impact the way ships can be operated in the future and require a new approach to the contractual relationship between owners and charterers,’ said Peter Eckhardt of German shipowner F. Laeisz, who headed the drafting team.

Carbon emission clauses

The BIMCO sub-committee tasked with drafting the series of carbon emission clauses is made up of representatives from BIMCO, owners, charterers, P&I clubs, and technical and legal experts, including the UK-based law firm HFW which is represented by Alessio Sbraga.

Søren Larsen, Deputy Secretary-General at BIMCO, also noted that the organisation is also developing clauses for emissions trading systems (ETS) and the carbon intensity indicator.

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Source: BIMCO

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