Noord
Nederlandsche
P&I Club

Update Volume 2018/27 BIMCO 2020 Bunker Clauses

Published on 18 december 2018

Further to the Club’s update (see Volume 2018/21) on the BIMCO 2020 Bunker Clauses pursuant to the IMO 2020 regulations, we would like to inform our members that the Documentary Committee of BIMCO approved two clauses – (1) the 2020 Global Marine Fuel Sulphur Clause for Time Charter Parties and (2) the 2020 Fuel Transition Clause for Time Charter Parties. They have been published on BIMCO’s website and the Club would like to briefly familiarize members with these.

1. BIMCO 2020 Marine Sulphur Content Clause for Time Charter Parties replaces the BIMCO Fuel Sulphur Content Clause 2005 and can now be incorporated into time charter parties. It sets out the obligations and responsibilities between Owners and Charterers in complying with the 2020 sulphur cap as laid down in MARPOL Annex VI. Under this clause, Charterers are obliged to:
- provide fuel that complies with MARPOL requirements, grades and specifications set out in the charter party;
- use suppliers and bunker barge operators who comply with MARPOL.

Whereas Owners will remain responsible for:
- fuel management.

2. BIMCO 2020 Fuel Transition Clause for Time Charter Parties relates to the cooperation between Owners and Charterers during the transitional period from the end of 2019 to the beginning of 2020 when the new MARPOL regulations will come into force requiring vessels to switch from 3,50% sulphur content fuel to 0,50% sulphur content. The clause states that any non-compliant fuel remaining on board after 1 January 2020 has to be removed no later than the vessel’s re-delivery or no later than 1 March 2020, whichever is the earliest. Removal of non-compliant fuel shall be at the Charterers’ costs, whereas tank cleaning shall be at the Owners’ costs.

Members are recommended to incorporate this clause to their charter party contracts even when re-delivery takes place before the year of 2020 but close to 1 January 2020.

Both clauses are available on BIMCO’s official website as follows:
- 2020 Global Marine Fuel Sulphur Clause for Time Charter Parties
- 2020 Fuel Transition Clause for Time Charter Parties

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