Sound WavesJul 07, 2023
The Impact of the EU Emissions Trading Scheme on Shipping
On 16th May, 2023 the European Parliament approved amendments to the EU Emissions Trading Directive, bringing shipping within the scope of the EU Emissions Trading Scheme (“EU ETS”). As a result, from 1st January, 2024, ships of 5000GT and above which transport cargo or passengers for commercial purposes will be subject to the EU ETS. This publication considers how the EU ETS works, the implications for owners and charterers and how parties can allocate the costs and responsibilities for complying with an ETS in their charterparties.
Podcast by Francesco Tundo, Senior Claims Director
Avoid EEXI uncertainty with the BIMCO EEXI clause
Taking on the role of an owner and a charterer in a hypothetical fixture discussion, Alexandra Couvadelli and Alex McCue discuss the implications of incorporating the BIMCO EEXI clause into the charterparty.
Expect the unexpected: BIMCO model force majeure
Recognising the rise in extreme events in recent years, BIMCO has issued a model clause with the aim of addressing unexpected or ‘force majeure’ events that affect the performance of the parties under a contract. Podcast by Rebecca Maddison.
Issues arising in newbuilding contracts
Shipbuilding projects are a significant investment and it is essential that contractual terms avoid uncertainty and ambiguity. Changes in the market, technological developments and an evolving regulatory environment all have the potential to trigger issues in relation to newbuilding projects and the associated contracts.
In this publication, the Club takes a look at some of the issues that potential buyers should be aware of, as well as the legal pitfalls to be avoided when entering into newbuilding contracts.
Podcast by Jim Binner.
Green Shipping “Fit for 55”: the EU Emissions Trading Scheme and promotion of greener fuels
On 14th July, 2021, the European Commission adopted a series of legislative proposals aimed at reducing greenhouse gas emissions, known as the “Fit for 55” package. The package marks a key step towards the EU’s aim to reduce greenhouse gas emissions by at least 55% by 2030 as compared to 1990 levels, and then to carbon neutrality by 2050. The proposals include, most notably for the maritime industry, measures to promote the use of alternative fuels and key amendments to the EU’s Emission Trading Scheme (“EU ETS”).
Podcast by Philippa Langton.
LNG Charters Common Issues
Although charterparty disputes may be less common in the LNG trade than in other trades, when they do arise, they can be complicated and costly. In this publication, we take a look at three of the main areas where we have seen a trend for claims (underperformance, breakdowns and terminal compatibility) and offer guidance to Members in terms of preventing and handling such disputes.
Podcast by Philippa Langton and Laura Starr.
Key changes to court procedural rules regarding witness statements
Changes to the rules governing the preparation of witness statements in English and Welsh civil court proceedings are now in place. The new rules, which are underpinned by principles of transparency and honesty, are likely to be of relevance from the very outset of any dispute. We therefore set out below the key points which may impact Members. Podcast by Chloe Townley.
Covid-19 and the crew change crisis
Among the many serious knock-on effects of the Covid-19 pandemic, the impact on crew has been a topic of particular concern within the shipping industry. Many ports have imposed restrictions or prohibitions on crew changes, leading to delays whilst joining crew are quarantined, or a need to deviate ships from their intended port rotation in order to effect essential crew changes. Aside from the clear humanitarian issues posed by this crisis, parties also need to consider the contractual impacts that may arise. Podcast by Oliver Goosens.
Sanctions updates: Belarus and Covid-19 authorisations for Syria, Venezuela and Iran
The EU has introduced new restrictive measures against Belarus in response to the repression of demonstrators disputing the re-election of Lukashenko and the forced diversion and landing in Minsk of a Ryanair flight carrying the journalist, Roman Protasevich, in May, 2021. This update follows our previous post on Belarus, in April, when OFAC announced sanctions on certain Belarusian entities, especially involving the oil industry.
OFAC issued three new general licences, in order to supplement the existing authorisations for COVID-19-related transactions and activities involving Syria, Venezuela and Iran. Podcast by Efcharis Rocanas.
Green Shipping - MEPC 76 de-brief
The 76th session of the IMO’s Marine Environment Protection Committee (MEPC 76) convened remotely from 10th to 17th June, 2021. The Committee, which addresses environmental issues under IMO's remit, discussed and implemented a number of key measures in furtherance of the IMO’s environmental goals. Here, we take a quick look at some of the highlights and their impact on Members. Podcast by Philippa Langton.
Smart decision: clarifying an owner’s unfettered right to intercept freight
Welcome clarity on an owner’s unfettered entitlement to freight has been received in a judgment handed down recently by the Commercial Court. The decision overturned a finding in London arbitration and will be welcome news to owners seeking security for their claims. Podcast Oliver Goosens.
Implication of Terms – Two Recent Judgments
Two recent Commercial Court judgments have considered the implication of contractual terms, with notably differing outcomes. The question of whether or not a term can be implied into a contract often gives rise to dispute, so we welcome this opportunity to consider the principles relating to implied terms in the context of these two recent examples. Podcast by Philippa Langton.
MOOKDA NAREE: The importance of carefully worded capture, seizure, arrest clauses
The recent Commercial Court decision in Navision Shipping A/S v. Precious Pearls Ltd and Conti Lines Shipping NV v. Navision Shipping A/S (m.v. Mookda Naree)  EWHC 558 (Comm) tackles issues relating to off-hire during a period of arrest. The judgment demonstrates how a minor difference in the wording of an arrest clause can have a significant impact on the hire position. Podcast by Laura Star.
LMAA terms and procedures revised
The London Maritime Arbitrators Association (“LMAA”) has recently updated its terms of procedure. The new terms came into effect on 1st May, 2021 and apply to arbitrations started on or after that date. Podcast by Rebecca Rowe.
Sanctions update: Belarus
OFAC has announced that sanctions on certain Belarusian entities are to be imposed following a 45 day wind-down period. Podcast by Efcharis Rocanas.
US sanctions against Russian “harmful activities”
On 15th April, 2021, the US took multiple sanctions actions targeting “aggressive and harmful activities by the Government of the Russian Federation” under a new Executive Order (“EO”). Podcast by Efcharis Rocanas.
Green Shipping – The Green Transition: an overview
The IMO has mapped out an ambitious pathway towards a carbon neutral industry. In this podcast, the first in our “Green Shipping” series, we outline the various stages that lie ahead and anticipate some of the practical and contractual challenges for our Members. Podcast by Philippa Langton.
Dangers of ‘disorderly’ conduct: consequences of not complying with court orders
In this podcast, we look at the court’s powers to impose sanctions on a party for failing to comply with its orders, how those powers work and how witnesses and parties can avoid falling foul of the rules and ending up in contempt of court. Podcast by Philippa Langton.
Security for costs: Pisante v Logothetis
This podcast discusses the recent judgment of the English Commercial Court in Pisante v Logothetis in relation to a security for costs application. The judgment provides useful guidance regarding the circumstances in which the court will award security for costs where claimants are domiciled out of the jurisdiction. Podcast by Philippa Langton.
Sanctions Update: Burmese military coup
In response to the recent military coup in Burma, the US has imposed sanctions and property blocking orders against certain parties involved in “the assault on Burma’s transition to democracy”. Podcast by Efcharis Rocanas.
The C Challenger: how effective is a reservation of rights?
It is common for parties to reserve their rights in general terms where a dispute is developing. This is often thought to protect a party’s rights under the applicable charterparty. However, in a recent case, the High Court held that the charterer had lost its entitlement to rescind the charterparty for misrepresentation, even though the charterer had expressly reserved its rights. Podcast by Philippa Langton.