EEXI Transition Clause from BIMCO

BIMCO publishes EEXI transition clause ahead of IMO energy efficiency regulation.

New regulation from the IMO, which will require existing ships to reduce carbon emissions, is due to enter into force in just under one year. As compliance will benefit to a large extent from cooperation between shipowners and charterers, BIMCO has developed a new clause to address the changes.

Amendments to MARPOL Annex VI are due to enter into force on 1 November 2022. In the meantime, the requirements for the EEXI certification come into effect from 1 January 2023.

The new regulation will require existing ships to improve their efficiency roughly. Hence, aligning with the EEDI requirement for new ships today. For a large part of the global fleet, getting the EEXI certification for a ship may mean applying technical modifications. In particular, such modifications are primarily through engine power limitation or shaft power limitation.

Nevertheless, the new EEXI Transition Clause is applicable in both existing and future time charter parties. It addresses the relationship between shipowners and charterers in the context of compliance with the new regulation. Particularly, this requires technical modifications and logical amendments to charter party descriptions and warranties.

The shipping industry faces more regulations aiming at CO2 emissions reduction. Therefore, the need for new contracts and clauses is increasing.

“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,”

Peter Eckhardt, German shipowner F. Laeisz, Head of drafting team.

“In addition to EEXI, we are also developing clauses for emissions trading systems (ETS) and the carbon intensity indicator (CII) regime to meet the future challenges for the industry,”

Søren Larsen, Deputy Secretary General, BIMCO

Source: BIMCO