Bunker Clauses INTERTANKO Bunker Compliance Clause for Time Charterparties
Year: 2018 Language: English Author: Intertanko Publisher: Intertanko Edition: 2nd edition Format: PDF Quality: eBook Pages count: 36 Description: The introduction of a ‘Global Sulphur Cap’ of 0.50% m/m for fuel oil under MARPOL Annex VI has caused much debate, including concerns about the availability of compliant bunkers, compatibility, and problems with blending activity to produce fuels with the low Sulphur limit required to be used by ships from 1 January 2020. Owners are required to ensure they comply with the revised provisions of MARPOL Annex VI and any other local laws or regulations that likewise may deal with Sulphur limits and bunkering. However, in a time charter, it is Charterers who supply the fuel. It is therefore essential that Owners insert a clause in their time charterparties to ensure that Charterers also comply with this revised regime. The quality of bunkers is both a regulatory and commercial issue. Owners are faced not only with issues of compliance with regulations, including MARPOL Annex VI, where failure to do so can result in sanctions and fines, but also with quality issues where bunkers supplied may otherwise be ‘off spec’. This can cause problems for Owners as evidenced by the recent spate of quality issues with bunkers emanating from the US Gulf and elsewhere. This Guidance includes the INTERTANKO Bunker Compliance Clause for Time Charterparties together with a Commentary on how it can be used and adapted for use. It also provides background information and Q&As gathered during the drafting on some important aspects of the revised regime as it applies to chartering issues. The Appendix to the Guidance contains the Guidance on the Development of a Ship Implementation Plan for the Consistent Implementation of the 0.50% Sulphur Limit under MARPOL Annex VI (MEPC.1/Circ.878) which we recommend is used in order to inform Owners’ decision making regarding the Additional Provisions of the INTERTANKO Bunker Compliance Clause for the transition to the 0.50% Sulphur Cap during 2019 and into 2020. Additional info: As with all INTERTANKO Clauses, the INTERTANKO Bunker Compliance Clause for Time Charterparties (hereafter referred to as the INTERTANKO Bunker Compliance Clause) is a ‘model’ Clause which can be negotiated and amended to meet the particular requirements of the charterparty or trade. For example, Members may use the Clause in full or may choose to use only the sections that deal with regulatory requirements and some or all of the best practice provisions. The INTERTANKO Bunker Compliance Clause has ‘bolt on’ transitional provisions to deal with the run up and immediate aftermath of the implementation of the 2020 ‘Global Sulphur Cap’ on 1 January 2020. These Additional Provisions are divided into two, with different responsibilities assigned to Owners and Charterers should the charterparty end late-2019 or continue into 2020.
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Bunker Clauses INTERTANKO Bunker Compliance Clause for Time Charterparties
Language: English
Author: Intertanko
Publisher: Intertanko
Edition: 2nd edition
Format: PDF
Quality: eBook
Pages count: 36
Description: The introduction of a ‘Global Sulphur Cap’ of 0.50% m/m for fuel oil under MARPOL Annex VI has caused much debate, including concerns about the availability of compliant bunkers, compatibility, and problems with blending activity to produce fuels with the low Sulphur limit required to be used by ships from 1 January 2020.
Owners are required to ensure they comply with the revised provisions of MARPOL Annex VI and any other local laws or regulations that likewise may deal with Sulphur limits and bunkering. However, in a time charter, it is Charterers who supply the fuel. It is therefore essential that Owners insert a clause in their time charterparties
to ensure that Charterers also comply with this revised regime.
The quality of bunkers is both a regulatory and commercial issue. Owners are faced not only with issues of compliance with regulations, including MARPOL Annex VI, where failure to do so can result in sanctions and fines, but also with quality issues where bunkers supplied may otherwise be ‘off spec’. This can cause problems
for Owners as evidenced by the recent spate of quality issues with bunkers emanating from the US Gulf and elsewhere.
This Guidance includes the INTERTANKO Bunker Compliance Clause for Time Charterparties together with a Commentary on how it can be used and adapted for use. It also provides background information and Q&As gathered during the drafting on some important aspects of the revised regime as it applies to chartering issues.
The Appendix to the Guidance contains the Guidance on the Development of a Ship Implementation Plan for the Consistent Implementation of the 0.50% Sulphur Limit under MARPOL Annex VI (MEPC.1/Circ.878) which we recommend is used in order to inform Owners’ decision making regarding the Additional Provisions of the
INTERTANKO Bunker Compliance Clause for the transition to the 0.50% Sulphur Cap during 2019 and into 2020.
Additional info: As with all INTERTANKO Clauses, the INTERTANKO Bunker Compliance Clause for Time Charterparties (hereafter referred to as the INTERTANKO Bunker Compliance Clause) is a ‘model’ Clause which can be negotiated and amended to meet the particular requirements of the charterparty or trade. For example, Members may use the
Clause in full or may choose to use only the sections that deal with regulatory requirements and some or all of the best practice provisions.
The INTERTANKO Bunker Compliance Clause has ‘bolt on’ transitional provisions to deal with the run up and immediate aftermath of the implementation of the 2020 ‘Global Sulphur Cap’ on 1 January 2020. These Additional Provisions are divided into two, with different responsibilities assigned to Owners and Charterers
should the charterparty end late-2019 or continue into 2020.
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