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Charterers need to be clear on how UK ETS costs and obligations are dealt with in their charterparties, according to marine insurer Skuld.
The registered owner is normally responsible to the scheme, while duties can be delegated to the ISM company through a legally binding arrangement, Skuld said in an article today.
Agreeing to pay to allowances does not make a charterer the regulated operator. The charterparty can, however, pass the cost to the charterer.
to time charters, Skuld said contracts should specify whether charterers provide UK allowances (UKAs) or pay in cash, including the price source and settlement date.
Contracts should also cover deviations, repairs, off-hire, redelivery, port releases, eligible-fuel adjustments and corrections after redelivery.
Under voyage charters, owners normally provide the fuel and might include releases costs in freight or apply a surcharge. The contract should explain how the surcharge is calculated.
Skuld also said charterers should compare head and sub-charter terms on scope, settlement, data, deadlines, remedies and time bars.
Charterers should have access to fuel, releases, voyage and port data needed to check allowance standards.
UK ETS came into force on July 1. The first UK ETS report, covering July 1-December 31, 2026, is due by March 31, 2027.
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