Are Traditional Time Charter Contracts a Stumbling Block for Fuel-Efficient Transport? - International Law Office

The Maritime Logistics Chains and the Environment (MARLEN) Project, which commenced in October 2008, is a bold, progressive project focusing on how international sea transport may be optimized to reduce fuel emissions. Heavyweight DNV Maritime is the project owner and major players such as Höegh Autoliners, StatoilHydro and MARINTEK are involved. The Scandinavian Institute of Maritime Law will explore the contractual side of the project.

Even though transport by sea is considered one of the most fuel-efficient means of transport, the shipping industry is undoubtedly still a major contributor to global warming. Fuel emissions have not caused great concern within the shipping industry, possibly due to a lack of direct contact with pressure groups. However, due to unpredictable bunker prices and plummeting freight rates, it makes commercial sense for many of the major players dealing in freight to investigate how fuel consumption and emissions can be reduced.

The MARLEN project purports to address this question with regard to emissions. The project aims to develop an understanding of how the various parts of the maritime logistics chain influence fuel emissions through a broad lateral exploration of the factual situation by means of case studies and close interaction with industry. The ultimate aim is to identify realistic and feasible ways to reduce emissions.

The Scandinavian Institute of Maritime Law will investigate the legal framework according to which decisions that directly or indirectly affect vessels' fuel emissions are taken. Apart from the actual contracts, other legal frameworks will also have to be taken into account. As contracts essentially mirror parties' interests, this part of the project will no doubt be of great significance and value.

The project is scheduled to be finalized by April 2010 and its results will be published in relevant forums.

The combined knowledge and unrivalled experience of the players involved, and the cooperation of, among others, the Grieg and DNV-run SynchroPort Project, mean that the prospect of fruitful results is good.

For further information please contact Torgeir Willumsen or Gaute K Gjelsten at Wikborg Rein's Oslo office by telephone (+47 22 82 75 00) or by fax (+47 22 82 75 01) or by email (twi@wr.no or ggj@wr.no). Alternatively, please contact Torgeir Hovden at Wikborg Rein's London office by telephone (+44 20 7236 4598) or by fax (44 20 7236 4599) or by email (tho@wrco.co.uk).