17th September 2019

Skuld Sulphur Seminar – September 2019

Glenn Winter gives a seminar in Copenhagen to representatives from all Skuld offices on the Sulphur Cap 2020 and, in particular, on the legal issues which are likely to arise under charterparties as a result.

Glenn Winter gives a seminar in Copenhagen to representatives from all Skuld offices on the Sulphur Cap 2020 and, in particular, on the legal issues which are likely to arise under charterparties as a result.

The main issues which were covered where the following:

  • The reasons for the cap, the relevant dates, the relevant provisions and the different methods of compliance.
  • Questions which are likely to arise under the Charterparty and the answers. This will cover:
    – General Principles
    – Specific Questions:
  1. Are Owners obliged to fit scrubbers?
  2. Are Charterers under an absolute obligation to provide compliant fuel for use as from 1st January 2020 [(assuming, of course, the vessel is not fitted with scrubbers)] – or are Charterers only under a duty to use “best efforts” to do so?
  3. Is it Charterers’ obligation or Owners’ obligation to ensure there are sufficient bunker tanks to accommodate potentially incompatible fuel?
  4. Is it Charterers’ obligation or Owners’ obligation to remove non-compliant fuel by or before 1st March 2020?
  5. Is it Charterers’ obligation or Owners’ obligation to clean bunker tanks and lines and at whose time and expense?
  6. Are Charterers or Owners responsible for restrictions in the use of open loop scrubbers?
  7. Are Charterers or Owners responsible for waste disposal resulting from the use of closed loop scrubbers?
  8. Are Charterers entitled to bring performance claims for additional consumption resulting from the use of scrubbers?
  9. Are Charterers entitled to bring performance claims for underperformance resulting from the use of compliant fuel and are Charterers or Owners responsible for engine problems resulting from the use of compliant fuel?
  10. How do you calculate the sum which Owners must pay for fuel on redelivery? And finally.
  11. Can the sulphur cap result in a Charterparty being frustrated?
  • Other Issues (including):
    – Unseaworthiness
    – Deviation
    – Delay
  • A review of the additional clauses drafted by BIMCO and Intertanko
  • The steps to take to protecting Owners’ and Charterers’ interests