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BIMCO's Low Sulphur Time Charter Party Clauses Are these Comprehensive ? Contributed by Nicholas Woo of Birketts LLP.  My vessel will be fixed for delivery into a long term time charter in Q4 2019. If I incorporate the BIMCO 2020 Fuel Transition Clause for Time Charter Parties and the BIMCO 2020 Marine Fuel Sulphur Content Clause for Time Charter Parties into my charter party, will this be enough to address all contractual issues arising from the MARPOL Regulations? Discussion NO! The BIMCO clauses do not deal, for example, with: i) The value/price of compliant bunkers on delivery and redelivery.  Owners will therefore need to insert provisions to provide for this, either by way of agreed fixed prices or by way of a bunker adjustment factor. ii) Where a scrubber installed on the vessel. Note that, for the purposes of a charter party, any scrubber installed will usually form part of the ship’s machinery/equipment, maintenance of which will be owners’ responsibility in the usual way.  ( And see below regarding disposal of scrubber waste ).  You should speak to your legal advisers about including a specific "scrubber clause".  See also INTERTANKO’s Bunker Compliance Clause for Time Charterparties and the Joint Guidance issues by BIMCO and INTERTANKO that was published on 23 May 2019 . iii) Performance of the vessel. Due to lower density (lower energy content per volume) of compliant fuel, ships’ engines are likely to burn additional bunkers to achieve the speed currently achieved with IFO/HFO. If compliant fuel has lower ignition / combustion properties than current HFO/IFO, this will cause reduced engine power. Alternatively, if a vessel has scrubber/s on board, the scrubber/s are expected to increase the vessel’s fuel consumption because the scrubber/s will require additional electrical power. It is recommended that owners review their vessels’ performance with compliant fuel and adjust the speed and performance warranty in their charter part
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pi_circular West of England ·2019-05-22

BIMCO Time Charter parties considerations

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