Tackling the barriers to transition may be the single most important issue facing the shipping industry on its path to decarbonisation. To succeed, new commercial solutions and shared responsibilities between charterers and shipowners will be required. So will collaborative efforts and responsibilities by stakeholders from shipowners, shippers and charterers to energy suppliers, shipyards, and engine makers.

As the regulatory landscape continues to change, BIMCO supports the Initial Strategy of the International Maritime Organization, its vision and objectives, but believes more ambition is needed. BIMCO therefore supports the objective of net zero carbon for shipping by 2050.

An important issue is the allocation of the responsibility for carbon pricing. BIMCO makes it clear that the commercial party responsible for setting the speed and route of a ship should also provide for emissions allowances or credits under a market-based measure (MBM).

“We believe that in the case of a time charterparty, this responsibility should lie with the charterer, and under a voyage charterparty, it should be with the party that commits the ship to the voyage charter,” says David Loosley, BIMCO Secretary General & CEO.

BIMCO remains a persistent advocate for the implementation of a global MBM. Such a measure should feature predictability and stability with regard to carbon price and thereby be suitable for incorporation in commercial contracts.

“A note of caution is made in the position pointing out that excessive retroactive technical measures when applied to existing ship could result in premature retirement of ships,” says Loosley.

“This could be in the form of unwarranted removal of needed capacity from the global supply chains and unnecessary additional emissions from building new ships,” Loosley says.

Read BIMCO’s updated GHG position statement