In a nutshell: BIMCO recently published a new model clause for time charter contracts with regard to FuelEU Maritime. This clause is essential in order to clearly define the areas of responsibility under the FuelEU Maritime regime between owners and charterers.

BIMCO recently published a new model clause for time charter contracts with regard to FuelEU Maritime. Owners and charterers can use this clause to deal with the complex FuelEU Maritime Regulation (Regulation (EU) 2023/1805). Including a clause in a charterparty dealing with the Regulation is essential in order to define the areas of responsibility under the FuelEU Maritime regime between owners and charterers. As the ultimate liability for compliance with the FuelEU Maritime Regulation rests with the manager / DOC holder, the responsibilities of owners and managers should be regulated in the management agreements.

In comparison to BIMCO's EU-ETS clause 2022 for time charter contracts the wording of the FuelEU Maritime clause for time charter contracts is more elaborate. This is due to the more complex nature of the Fuel EU Maritime regime as compared to EU ETS. Although the wording appears more high level, the FuelEU Maritime clause does not have the same in-depth level dealing with the regulation as the EU-ETS clause.

The FuelEU Maritime clause consists of several paragraphs. First, there are the various definitions of the relevant terms used in the clause. The definitions are followed by paragraphs dealing with the application of the clause and the FuelEU Maritime regime on a chartered vessel. Further, the clause deals with the exchange of relevant information between the parties of the charter contract. The main provisions of the clause provide for the regulation of compensation payments that may be required between the parties of the charter contract. Finally, the model clause contains a paragraph dealing with on shore power supply.

The model clause may be found on the BIMCO website under Contracts and Clauses.

BIMCO also plans to publish a new model clause for management agreements in relation to FuelEU Maritime to cover the relationship between owners and managers. This will be interesting to see as pursuant to the FuelEU Maritime Regulation the manager / DOC holder is much more exposed to the authorities than it is under the EU-ETS regime. Further, on the sale of a vessel each of sellers and buyers (and possibly charterers) will need to adhere to the requirements of both EU-ETS and the FuelEU Maritime regimes. We expect that respective MoA clauses will be developed in the near future to cover this. The BIMCO model clauses should certainly help in this respect.

If you have any questions, please get in touch with your contact person at EHLERMANN RINDFLEISCH GADOW or with Sven Deters or Dr. Julia Glocke.