Charter party issues on low sulfur emission

Legislation regarding the reduction of sulphur in fuel is of course not new. Members are reminded of the INTERTANKO Model Clause on Bunker Emissions for Time Charters, developed when the low sulphur fuel requirements of MARPOL Annex VI came into force. When our Documentary Committee produced this clause, it also had the 2005 EU Sulphur Directive in its sights.

This clause confirms that owners will meet the emission limits in MARPOL Annex VI and any similar laws or regulations, which would include the EU Sulphur Directive. Members may wish to amend the clause to mention this specifically.

The scheme of the clause means that the charterers have an obligation to provide the vessel with the fuel required to enable the vessel to comply with emission controls in the ECA. Failure to do so will be a breach by the charterers, who would then be liable to indemnify the owners for any resulting losses. Provided the charterers have supplied the requisite fuel, the responsibility to comply with the emissions control requirements rests with the owners. Overall it is the owners’ responsibility to ensure that the vessel is fit to trade and can do so safely within the trading limits laid down in the charterparty.

To view INTERTANKO Model Clause pls visit: http://www.intertanko.com/