Independent Operational & Commercial Advisory Prepared by Oceanroute Voyage Performance • Weather Routing • Emissions & Regulatory Advisory
Decarbonization without commercial compromise.
This publication provides practical, experience-based guidance on decarbonization for shipowners, charterers, operators, and brokers. It focuses on operational execution, commercial exposure, and contractual risk, rather than theoretical or policy-driven approaches.
The guidance reflects Oceanroute’s long-standing involvement in voyage performance analysis, weather routing, and emissions assessment across global trades.
The shipping industry is subject to an expanding regulatory framework aimed at reducing greenhouse gas emissions. These regulations directly affect voyage planning, speed, fuel consumption, charter-party drafting, and asset value.
The most commercially relevant regimes include:
CII measures a vessel’s operational carbon efficiency annually, expressed as grams of CO₂ per cargo tonne-mile, with ratings from A (best) to E (worst).
Key drivers of CII performance:
Commercial consequence: Speed orders issued by charterers materially affect CII outcomes.
EEXI is a technical compliance measure. Many vessels use Engine Power Limitation (EPL) to meet requirements. EPL-driven speed reduction is regulatory, not a performance failure, and must be reflected in charter-party expectations.
The EU ETS imposes a carbon cost on voyages involving EU ports. Exposure is based on actual fuel consumption, emission factors, and market-driven EUA prices.
Commercial consequence: Clear cost allocation in charter parties is essential to avoid disputes.
Shipowners should integrate decarbonization into daily operations while prioritizing safety and compliance.
Owners should ensure charter parties:
Charterer instructions directly influence:
Decarbonization affects core charter-party mechanics:
EU ETS exposure is calculated via:
Fuel Consumption → Emission Factor → EUA Price → Total ETS Cost → Settlement
Biofuels are currently the most practical short-term solution for emissions reduction.
Oceanroute provides:
Our focus: commercially realistic compliance, aligned with real-world operating constraints.
Owners warrant that, at the date of delivery under this Charter Party, the Vessel complies with applicable IMO Carbon Intensity Indicator (CII) regulations. Charterers shall operate the Vessel in a manner consistent with maintaining the Vessel’s CII rating and shall not issue orders which would reasonably be expected to result in the Vessel receiving a D rating for three (3) consecutive years or an E rating in any single year. Owners shall be entitled to adjust the Vessel’s speed and/or engine revolutions where reasonably necessary to maintain or improve the Vessel’s CII rating or to comply with applicable CII requirements. Any such adjustment shall not constitute a breach of the speed and consumption warranties under this Charter Party, and any loss of time solely resulting from such adjustment shall count as time on hire.
The Vessel is compliant with applicable Energy Efficiency Existing Ship Index (EEXI) requirements and may be fitted with Engine Power Limitation (EPL) or other technical measures to achieve such compliance. Charterers acknowledge that the maximum available engine power and corresponding speed may be restricted as a result. Any reduction in speed or performance resulting directly from compliance with EEXI or the implementation of EPL shall not be considered a deficiency in performance and shall not give rise to any claim against Owners, provided that Owners have exercised due diligence in maintaining the Vessel in an efficient condition.
Charterers shall be responsible for all costs, charges, levies, and expenses arising under the EU Emissions Trading Scheme (EU ETS) or any similar or successor scheme, in respect of greenhouse gas emissions generated during the Charter Period. Such costs shall include, but not be limited to, the acquisition and surrender of emission allowances. The quantum of such costs shall be calculated on the basis of the Vessel’s actual fuel consumption, appropriate emission factors, and the applicable price of emission allowances. Owners shall provide Charterers with reasonable supporting documentation. Charterers shall reimburse Owners for such costs monthly together with hire, without set-off or deduction.
Charterers shall have the option to supply biofuels or biofuel blends for use on board the Vessel, provided that such fuels comply with applicable ISO standards and are compatible with the Vessel’s engines and fuel systems, as reasonably approved by Owners or the Vessel’s technical managers. Any additional costs, delays, or consequences arising from tank cleaning, segregation, sampling, testing, or handling specifically related to the use of such biofuels shall be for Charterers’ account. Owners make no guarantee as to the level of emission reductions achieved unless supported by verifiable certification acceptable to Owners.
Where operationally safe and feasible, Charterers may request that the Vessel adjust speed in order to optimize arrival time at a port or place, including for the purposes of reducing emissions or congestion. Any resulting adjustment shall not constitute a breach of the speed and consumption warranties under this Charter Party. Time lost solely as a result of such speed adjustments shall count as time on hire, and all other terms and conditions of the Charter Party shall remain in full force and effect.
Oceanroute – Operations Department Tel: +30 210 8959741 Email: ops@oceanroute.com
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