BIMCO release EEXI transition clause

BIMCO release EEXI transition clause | BDM Blog | BDM Law

We recently commented here on the regulatory challenges faced by shipowners from 1 January 2023.

To ease this burden, BIMCO have released an EEXI transition clause, a copy of which can be found here. More clauses are set to follow to deal with carbon intensity.

It seems we are set for more acronyms as climate change legislation kicks in. To get an overview of the terminology, we would recommend visiting the IMO site here.

Briefly, the EEXI clause obliges ship owners to comply with the new regulations. There are provisions dealing with modifications required ahead of the regulations coming into force and who pays for those and whether the time is on or off hire. There are provisions dealing with the change to the performance of the vessel in the light of new regulations which has a bearing on the existing performance warranties. We expect to see the clause used as a template for further refinement as modifications will benefit those who charter vessels on a long-term basis.

As with any new clause, BIMCO are trying to anticipate the issues that may arise but the scope for disputes remains. We anticipate that we may see disputes similar to those that arose when the new SOX legislation came in on 1 January 2020. That legislation led to many scrubber retrofits and associated disputes relating to design, installation and maintenance, especially where the scrubber was part financed by a long-term time charterer.

The EEXI regulations are very much at the top of our clients’ agenda. The new regulations come into force in just 9 months. We continue to assist clients who are taking the necessary measures to prepare.

Nick Burgess - author profile
Nick Burgess
Partner
Constantin von Hirsch - author profile
Constantin von Hirsch
Trainee
BDM is a specialist shipping law firm offering high quality legal advice and representation at a reasonable price. Please follow us on social media by clicking below.

Other Recent Blogs

  • Anti Suit Injunctions What are they and when can you get one | BDM Blog | BDM Law
    March 6, 2024

    Anti Suit Injunctions – What are they and when can you get one?

    Recently, we have been advising clients on a possible anti-suit injunction (ASI) against proceedings commenced in breach of an exclusive jurisdiction clause. On the back of that, we felt it might be useful to release this blog to shed more light on these injunctions, in part[...]

    Read more >
  • Red Sea To go or not to go | BDM Blog | BDM Law
    February 21, 2024

    Red Sea: To go or not to go?

    The world is adjusting to the new reality of ships refusing to run the risk of being targeted by missiles launched by Houthi rebels. Over 50 ships have now been targeted with some seriously damaged. So far, no crew have been killed or injured. However, the risks remain. It[...]

    Read more >
  • BDM partners ranked once again in Who's Who Legal Transport 2024 | BDM Blog | BDM Law
    February 19, 2024

    BDM partners ranked once again in “Who’s Who Legal: Transport 2024”

    Our founding partners have once again been listed as among the world’s leading shipping law practitioners in the Who’s Who Legal: Transport 2024 report. Congratulations to David, Nick and Bob! They commented: “We are very happy to be again recognized in this public[...]

    Read more >
+44 203 968 0500
+44 7887 710 950