BIMCO seeks comments on CII clause amid criticism from charterers

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The organization said it received positive and negative feedback. Image File/Pixabay

Shipping industry body BIMCO has asked for comment on its time charter contract clause covering carbon intensity (CII) regulations amid criticism from parts of the industry.

The organization announced the clause in November, outlining how CII compliance can be handled for charter vessels.

From 1 January, all vessels over 5,000 GT will have a CII rating calculated for them based on historical data submitted to the IMO. The rating is a calculation of the CO2 emitted by the vessel per unit of cargo capacity per nautical mile.

The grade will be in the form of a letter between A and E, with A at the top of the scale, and grades will be determined on an annual basis. Vessels receiving a D rating for three years or an E rating for a single year will be required to implement a ship’s energy efficiency management plan setting out their plans to improve their performance.

As part of the BIMCO clause, charter parties will agree in advance on a specific CII score to be achieved each year.

A group of 23 major charterers wrote an open letter to the organization this week, saying the new clause places a disproportionate burden on charterers.

BIMCO has held interviews and met with members and stakeholders to get feedback on the clause, it said Wednesday in a statement posted on its website.

“We have received constructive feedback, both positive and negative, from many of our members,” David Loosley, BIMCO’s corporate secretary, said in the statement.

“This information is invaluable for clauses already published and the development of future clauses.

“We will continue to seek solutions to help our members operate commercially in a complex regulatory environment.”

The organization also suggested that some may not fully understand the rules.

“Following recent dialogue with members, BIMCO understands that many stakeholders are still struggling to interpret the complexities of the CII Regulation,” BIMCO said.

“BIMCO offers comprehensive training as well as free webinars to explain how the clause works in practice and how to understand the CII Regulation.”

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