New CII clause puts pressure on time charterers

BIMCO has released a new CII operations clause, with charterers expected to take responsibility for a ship’s emissions.

International shipping organization BIMCO has released its keenly awaited new Carbon Intensity Indicator (CII) operations clause. Thus, imposing charterers to expectedly take responsibility for a ship’s emissions.


New regulations on the carbon intensity of international shipping will come into force on 1 January 2023. Particularly, the CII regulations will expectedly have a significant impact on the future operation of ships. Therefore, shipowners and charterers must change the way they cooperate. In this regard, there is a need for new clauses for charter parties to help owners and charterers succeed.

How to calculate the ship’s CII rating?
The Clause

The BIMCO Documentary Committee yesterday adopted the CII Operations Clause for Time Charter Parties. Specifically, the starting point for the new CII clause is that time charterers take responsibility for the ship’s emissions. This births from the fact that they make decisions on the operation of the ship. Hence, when entering into a charter party, or incorporating the clause into an existing charter party, the parties are to agree on a specific CII value to be achieved each year.

The new clause will be reviewed as the underpinning regulatory regime develops,

Nicholas Fell, chair of BIMCO’s Documentary Committee
Further Developments

As the industry faces more regulations from the IMO and the EU aimed at reducing shipping’s CO2 emissions, the need for new contracts and clauses increases. Note that, in December 2021, BIMCO published an EEXI Transition Clause and at the end of May 2022, BIMCO released a new Emissions Trading System Allowances (ETSA) Clause for Time Charter Parties in response to the European Union’s intention to include shipping emissions in the EU’s emissions trading system, the ETS.

The subcommittee will now continue its work to develop further clauses such as a CII clause for voyage charter parties to assist charterers and owners responding to new regulatory requirements, regardless of whether they come from the IMO, EU, or elsewhere,

Stinne Taiger Ivø, director, contracts and support at BIMCO.

Source: BIMCO

See Also

The IMO’s carbon intensity indicator (CII) and Energy Efficiency Existing Ship Design Index (EEXI) are approaching. Hence, fears arise that the tankers sector might emit higher CO2 emissions. Resulting from the adjustments in trading patterns to attain the required rating.

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