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New Bimco CII Clause in Voyage Charter Contracts: Challenges and Considerations

On October 20, Bimco introduced an innovative clause focusing on the Carbon Intensity Indicator (CII) for voyage charter contracts. While this clause builds on Bimco’s well-known Slow Steaming Clause, there are areas that require a deeper understanding. In this blog, we will explore the key issues highlighted by Gard, providing a detailed insight into the challenges that shipowners and charterers may face with this new provision.

The CII Clause for voyage charters, simpler compared to its time charter counterpart, is expected to facilitate negotiations between shipowners and charterers. However, there are crucial areas that must be carefully understood. One key point is its impact on the additional provisions of the existing charter contract. By overriding any other provisions, especially by introducing customized clauses, caution is urged to avoid potential conflicts.

Subclause (a) highlights the shipowners’ right to adjust speed and course to reduce the ship’s carbon intensity. Unlike the Slow Steaming Clause, shipowners are granted the right to adjust the course, which has significant implications for voyage charterers who wish to maintain the CII rating. Additionally, the complexity associated with port stay time, a less predictable but critical element, is discussed.

In conclusion, despite these challenges, Gard suggests that the CII Clause is well-drafted and can be beneficial for use in voyage charters, especially when shipowners want to take measures to maintain CII ratings or when charter terms allow for speed/route adjustments for CII purposes. However, careful review of existing provisions and additional clauses is requested.

This step towards sustainability, although challenging, reflects the shipping industry’s commitment to more eco-friendly and efficient practices. The careful adoption of the CII Clause in voyage charter contracts not only drives efficiency but also environmental compliance.

Source: Mundo Marítimo