INTERTANKO Documentary Committee Bunker 2020

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1 Click to edit Master title style INTERTANKO Documentary Committee Bunker 2020 Michele White - General Counsel, INTERTANKO INTERTANKO Council Meeting IMO Headquarters London, 7 November 2018

2 BUNKER INTERTANKO WHAT IS INTERTANKO DOING TO HELP MEMBERS? Promote the global use of clean fuels to reduce air emissions from ships Advise on both compliance with MARPOL Annex VI /other regulations on fuel oil and practical issues Assist Members in making the right choices for their ships to comply with air emission requirements - LSFO? Scrubbers? Provide advice and guidance on the cost-benefits of the use of clean fuels and the alternative options available to comply with Annex VI of MARPOL Provide suite of INTERTANKO Model Clauses for Bunker Emissions and Sulphur Cap

3 INTERTANKO BUNKER Emissions 2005

4 INTERTANKO BUNKER Emissions Supply

5 Documentary Committee 2020 Some Issues 1. Compliance with MARPOL Annex VI provisions 0.10% ECA provisions, 0.50% Sulphur Cap and bunker quality 2. Compliance with other regulations international, national, regional, local 3. Fuel specification? current ISO 8217? New ISO ? 4. Is the fuel fit for purpose? blending fuels/compatibility 5. Correct BDN and sampling (MARPOL)? 6. Participation in Fuel Testing Programme? 7. Transitional provisions 2019/ Charterer provides; Owner takes responsibility liability/indemnities 9. One clause ready for use now and into 2019/2020

6 INTERTANKO Bunker Compliance Clause Charterer provisions: 1. Compliant Bunkers defined - Charterer warrants compliance with: a. MARPOL Reg 14 re. global sulphur cap and % m/m in ECA b. MARPOL Reg 18 re. bunker quality c. SOLAS requirements of min. flashpoint of 60ºC d. local, regional and national regulations e. compatibility with previous supplies f. current ISO 8217 and/or any other c/p specifications g. fitness for purpose 2. Charterers will provide: a. bunker delivery note in accordance with MARPOL b. samples in accordance with MARPOL 3. Charterers will ensure bunker suppliers are registered (if appropriate) and that they comply with MARPOL Reg. 14 and Charterers indemnity for breach

7 INTERTANKO Bunker Compliance Clause Owner provisions 5. Owner warrants: a. compliance with MARPOL Reg 14 and 18 b. compliance with local, regional and national regs. c. compatibility tests before use of new supply d. segregation of new supply until compatibility established e. participation in fuel testing programme f. vessel can burn Compliant Bunkers 6. Owners indemnity for breach 7. Suspension of performance warranties for non-compliant Bunkers/Fuel Changeover periods Plus bolt on Transitional Provisions

8 INTERTANKO Bunker Compliance Clause Transitional Provisions for: 1. redelivery end 2019 a. removal of HFO b. sufficient Compliant Bunkers on board for use post 1/1/2020 c. Owners may prepare the Vessel to receive Compliant Bunkers 2. redelivery after 31 December 2019 a. implementation plan b. timely supply of Compliant Bunkers c. Owners may use Compliant Bunkers pre-2020 Prior to redelivery / or (HFO carriage ban) Charterers to: i. removal of HFO ii. tank cleaning/flushing iii. disposal of residues d. allocation of costs e. hire provisions

9 Compliant Bunkers INTERTANKO COMPLIANT BUNKERS CLAUSE 2 nd November Charterers warrant that they will supply bunkers (hereafter referred to as Compliant Bunkers ): a. of sufficient quantity and quality to enable the Vessel to: 1) comply with the global limits on sulphur content of bunkers under Regulation 14.1 of MARPOL Annex VI, including the maximum 0.50% m/m used or carried for use on board after 1 January 2020 ( Global Sulphur Cap ). 2) comply with the limit of 0.10% m/m on sulphur content of fuel oil within designated Emissions Control Areas under Regulation of MARPOL Annex VI. 3) comply with Regulation 18.3 of MARPOL Annex VI regarding quality of fuel oil supplied to the Vessel. 4) comply with Regulation of the International Convention for Safety of Life at Sea (SOLAS) Chapter II-2 regarding a minimum flashpoint for fuel oil of 60*C. 5) comply with any other local, regional or national laws or regulations relating to the limits on sulphur content of fuel oils, bunker specification, and bunkering procedures in any areas to which the Vessel is ordered. 6) avoid non-compatibility with any fuel oil previously supplied under this charterparty.

10 INTERTANKO Model Clauses coming to a screen near you Thank you for your attention Michele.white@Intertanko.com Leading the way; Making a difference

2020 Bunker Clauses. INTERTANKO Bunker Compliance Clause for Time Charterparties. V1 Dec 2018

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