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 Maritime Regulations and Shipping News

Today, pooling is widely recognised as a reliable compliance mechanism under FuelEU Maritime. In most commercial discussions, the underlying assumption is that once a pool is agreed, it will be executed. This assumption deserves closer investigation. In practice, pooling is not a single step but a multi-stage process with dependencies and hard deadlines. The successful execution of a pool requires that each of these steps is completed correctly and in sequence by all pool par

FuelEU Maritime is now transitioning from a phase of preparation into one of execution. Over the first compliance year, market participants have developed compliance strategies based on assumptions. Surplus positions were modelled, pooling arrangements were structured, and commercial transactions were entered into on the expectation that these structures would translate into regulatory outcomes once the FuelEU Database and its operational framework became operational. With th

As regulatory obligations under FuelEU Maritime begin to settle into market practice, maritime lawyers and shipowners face new challenges. They must craft robust Sale and Purchase (S&P) contracts for ships that safeguard against unexpected regulatory and commercial liability. While our previous newsletter addressed the general compliance responsibilities of buyers and sellers (“Selling and Buying Ships Under FuelEU Maritime”), this edition moves beyond theory. It provides act

As the first FuelEU Maritime compliance cycle progresses, the surplus market has expanded rapidly. What began as a maritime compliance instrument has evolved into a traded commodity. This evolution has attracted far more participants than the regulation or its creators anticipated. FuelEU Pooling Rights and Their Holders The regulation assigns compliance responsibility to the ISM company, granting them the right to pool. However, contractual arrangements allow for the reassig

FuelEU Maritime compliance brings new commercial challenges. While the regulation defines penalties and created a surplus trading market, it leaves open how owners and charterers should settle costs and benefits in charter parties. The result? A wide range of FuelEU addendums now circulating in the market. In today's newsletter, we shed light on the different settlement options. General Recap: Charter Party Agreements under FuelEU Maritime End of 2024, BIMCO released its stan

The implementation of the FuelEU Maritime Regulation has introduced compliance mechanisms that connect legal, operational, and financial responsibilities. These changes affect ship owners, charterers, and ship managers while opening the door to even more players, such as fuel suppliers and EUA traders. This week, we explore the complex, evolving, and dynamic web of FuelEU stakeholders and discuss the opportunities and challenges ahead. Stage 1: The ISM Company is at the Heart

The FuelEU Maritime Regulation introduces additional complexity in both charters as well as SHIPMAN contracts. With BIMCO’s recently published FuelEU Maritime Clause for Time Charter Parties and the approaching end of 2024, the industry is now facing discussions and negotiations for exactly these clauses. This not only elevates the actuality of the regulation’s legal framework but also the internal strategies for compliance that are strongly influenced by those considerations

Selling or buying ships under FuelEU Maritime introduces challenges for both buyers and sellers. The regulation adds complexity to the process, from managing compliance balances to ensuring compliance responsibility between both parties. This week’s newsletter explores the regulatory requirements for ship sales, highlights potential risks, and includes a practical example. Regulatory Requirements for Selling and Buying Ships under FuelEU Maritime The FuelEU Maritime Regulatio

As shipping companies work on their strategies for compliance with FuelEU Maritime, they are considering different models for trading compliance surpluses and pooling. Two primary options arose: marketplaces, driven by all individual marketplace participants, and super pools, structured around centralized management by a single provider. Today, we look at the key categories for consideration and the main differences between these models, focusing on structure, transparency, a