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BIMCO says its 2020 Bunker Clause working group is "pushing hard" to complete work on two key clauses addressing the global switch to 0.5 percent fuel sulphur content on January 1, 2020.

The '2020 Global Marine Fuel Sulphur Content Clause', which is a general compliance provision, is due to be put forward for adoption by BIMCO's Documentary Committee on November 13, whilst the first version of a '2020 Transitional Fuel Clause' - which deals with the transition to 0.5 percent sulphur content - is also being prepared by BIMCO's drafting team and is due to be discussed by BIMCO's Documentary Committee later this month.

"The feedback provided by the Committee will be used to further refine the clause immediately afterwards. Furthermore, the sub-committee will ask the Documentary Committee to fast-track the clause with the aim to issue the 2020 Global Marine Fuel Sulphur Content Clause and the 2020 Transitional Fuel Clause together as a package," said BIMCO's Head of Contracts and Clauses, Grant Hunter.

2020 Global Marine Fuel Sulphur Content Clause

At the core of the 2020 Global Marine Fuel Sulphur Content Clause is an obligation on owners and charterers to comply with the sulphur content requirements of MARPOL Annex VI. Fuels supplied by the charterers have to meet not only the MARPOL Annex VI requirements, but also the specifications and grades set out in the charter party.

Importantly, the charterers must also use bunker suppliers and barge operators who will comply with MARPOL requirements throughout the supply chain.

2020 Transitional Fuel Clause

The 2020 Transitional Fuel Clause recognises that owners and time charterers will have to cooperate in the run up to January 2020 to manage fuel supplies to minimise the amount of non-compliant fuel on board the ship on the coming in to force date.

Any non-compliant fuel on board belonging to the charterers after January 1, 2020, will need to be discharged from the ship and disposed of at charterers' risk, time and cost latest by the March 1, 2020 carriage ban date, or by the redelivery date - whichever comes first. It will be the owners' responsibility to clean empty fuel tanks to prepare them to receive 0.5 percent sulphur content fuel.

The clause emphasises the need for cooperation in planning and preparation to ensure a smooth as possible transition to the new low-sulphur fuel.

A requirement to segregate fuels of different grades is a common provision in most time charter parties. However, there are concerns that new 0.5 percent sulphur content fuel may have compatibility issues even between stems produced by the same oil company. To minimise the risk of incompatibility between stems of 0.5 percent sulphur fuel, the clause requires each supply of fuel to be kept separate - even if it is of the same grade and specification.

October drafting team meeting

The drafting team met in London on October 29 and were joined by representatives from Intertanko.

"We recognise the importance of trying to work together to produce clauses that both organisations can stand behind. We also believe that a diverse team is very important to ensure a broad perspective on all issues," said Hunter.

The team includes owners, charterers, fuel suppliers, P&I Clubs and lawyers. The team is: Peter Eckhardt, F Laeisz, Germany (Chairman); Nicola Ioannou, Ocean Fleet, Greece; Dimitrios Los, Vontrados, Greece; Daniel Chu, Navig8, UK; Ann Shazell, Cargill Ocean Transportation, Switzerland; Rob Crees, World Fuel Services, UK; Tiejha Smyth, NEPIA, UK, Paul Dean/Alessio Sbraga, HFW, UK.

Intertanko was represented by Michele White, general counsel, and Claire Georgeson, Commercial and Markets Manager.

Technical guidance is provided by Lars Robert Pedersen, Deputy Secretary General for maritime technology and regulation at BIMCO.