Climate clause

Maximising the Laden Ratio of Vessels in Shipping Charterparties [New]

Bradleigh's Clause

A charterparty clause encouraging the parties to consider opportunities and cooperate to maximise the laden ratio of the vessel and minimise repositioning voyages in ballast during the charter period.

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Why use this?

Bradleigh’s Clause promotes more efficient (and therefore more cost effective) use of a vessel, facilitates cooperative dialogue between owners and charterers, and could open up additional employment opportunities for the vessel.

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The clauses on this website (and published in our Climate Contract Playbook) have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.

The clauses on this website (and published in our Climate Contract Playbook) are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the clauses will achieve the relevant climate goal or any other outcome.

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At present, all the clauses are based on the laws of England and Wales. We encourage the conversion of these precedent clauses for use in other jurisdictions.

The clause

Additional Definition

GHG Emissions means emissions of the greenhouse gases listed at Annex A of the 1998 Kyoto Protocol to The United Nations Framework Convention on Climate Change, as may be amended from time to time, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), nitrogen trifluoride (NF3), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6), each expressed as a total in units of carbon dioxide equivalent (CO2e).

 

Additional Clause

1. The Owners and Charterers acknowledge the contribution of shipping to GHG Emissions and the need to maximise the efficient use of the Vessel whenever possible. To that end, the Owners and Charterers agree that throughout the term of this charterparty they will [use all reasonable endeavours and]* cooperate to: 

(a) minimise ballast voyages undertaken by the Vessel; and 

(b) maximise the [laden ratio]** of the Vessel for each voyage. 

Measures taken under this clause [1] might include, but are not limited to: 

(i) [periodic/ regular] sharing of information regarding the use of the Vessel and other Vessels within the fleets of the Owners and Charterers (and their affiliated group companies) that are carrying compatible cargoes with a view to optimising the use of all such Vessels*** to achieve the above objectives; 

(ii) consideration of temporary changes to the hire payable to incentivise the Charterers to achieve the above objectives; and 

(iii) temporary redelivery of the Vessel to the Owners to enable the Owners to undertake business for their own account.

* [Drafting note: Whether this is commercially reasonable will depend on the circumstances of the owner and charterer, number of vessels in fleet, nature of vessel etc. A general agreement to ‘cooperate’ only may be more appropriate in certain circumstances.]

** [Drafting note: ‘Laden Ratio’ may be a defined term in the charterparty.]

*** [Drafting note: Users of this clause will need to check the contractual changes that may be required in the charterparty/ other charterparties to swap cargoes between Vessels.]

Glossary references: Greenhouse Gas (GHG) Emissions

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