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Direct lending coming to Norway
Direct lending has so far been largely absent in the Norwegian market due to regulatory constraints. However, the regulatory landscape is about to change which will present new possibilities for non-bank lending.
Defence procurements at Norwegian yards – new rules on ownership control
Norway’s new long term defence plan will most likely lead to several new defence contracts. Contractors entering into such contracts may have to comply with additional contractual and regulatory requirements. This includes the Norwegian Security Act, and its recently revised rules on ownership control.
Equipment leasing in the shipbuilding industry – inherent risks and how to mitigate them
In aviation and other sectors, equipment leasing has long been a recognised tool for companies looking to finance expensive items of equipment. Whilst to date equipment leasing has been less visible in the shipping industry, we are now seeing an increased interest in this type of financing from both shipowners and equipment lessors. However, leasing arrangements do include some inherent risks which the parties should seek to mitigate.
The Electronic Trade Documents Act 2023 – the framework we’ve been missing?
The Electronic Trade Documents Act, which came into force in September 2023, enables a “trade document” in electronic form to be used in the same way as its paper equivalent provided that certain criteria are met.
“Ever Given” – Court of Appeal upholds that no salvage contract was concluded
The English Court of Appeal has recently rendered judgment in the dispute between salvors and the shipowners as to whether a salvage contract on commercial terms had been made in connection with the re-floating of the “Ever Given” in the Suez Canal in March 2021 (SMIT Salvage & Ors v. Luster Maritime SA & Anr (The Ever Given) [2024] EWCA Civ 260). The judgment illustrates the importance of the parties making clear during negotiations whether they intend to be bound.
BIMCO publishes first standard-form quiet enjoyment letters for ship financing
Charterers are increasingly requesting to receive quiet enjoyment letters (“QELs”) from the mortgagees of chartered vessels. As there has not been any standard format for QELs, owners have often found themselves caught in the middle of protracted negotiations between the charterers and the mortgagees when QELs are requested. To meet the longstanding need for a standard format acceptable to charterers, mortgagees and owners, BIMCO published two standard form QELs on 21 February 2024.
SHIPMAN 2024 – a welcome, gentle revision
Since its original introduction in 1988, the BIMCO standard ship management agreement SHIPMAN (revised in 1998 and 2009) has established itself as the global standard ship management agreement. Adopted on 22 March 2024, the new SHIPMAN 2024 represents a light touch revision of the standard form, incorporating established standalone clauses and new provisions reflecting these developments.
Carbon capture – building a new value chain from a contractual perspective
With its history and extensive experience with CO2 management as an oil and gas nation, Norway is a leading country in building a new CCS value chain in the fight against climate change.
Transportation of CO2 – an emerging market
Following the Paris Agreement, Carbon Capture and Storage (CCS) has emerged as a promising tool to substantially reduce carbon emissions. Whilst CCS’s potential is considerable, it is still a developing industry that needs efficient means of transportation.
Integrating emissions trading schemes in ship management agreements – BIMCO’s new ETS clause and mandate letter
In advance of the recent inclusion, as from January 2024, of the shipping industry in the European Union Emissions Trading System (EU ETS), BIMCO introduced a new ETS clause tailored specifically for ship management agreements.
Calls on IMO to solve legal inconsistencies on ship recycling
BIMCO has, together with the International Chamber of Shipping, Norway, Bangladesh, India and Pakistan, urged the International Maritime Organisation (IMO) to solve possible conflicting requirements between the Hong Kong Convention and the Basel Convention ahead of the entry into force of the Hong Kong Convention on 26 June 2025. The potential conflicts may expose shipowners and others to severe consequences, particularly when recycling ships in the major ship recycling countries in South Asia such as Bangladesh, India and Pakistan, even if the ships and facilities comply with the Hong Kong Convention.
WRECKSTAGE 2024 – new industry standard wreck removal agreement
Yesterday, BIMCO released a new version of WRECKSTAGE, which has long been the industry standard agreement for maritime wreck removal projects where the contractor is remunerated on a lump sum basis. Several changes have been made, the most important being a new optional risk allocation procedure, often referred to as QRA (quantitative risk assessment), which is intended to give greater certainty in the allocation of risks. The result is an improved form which will be warmly welcomed by the industry.
EU ETS: New Standard Template from BIMCO and Key Considerations
Following the inclusion of shipping in the EU's emissions trading system on 1 January 2024, the focus is now shifting to the practical aspects of compliance with the regulations, including monitoring, reporting, and surrendering of allowances.
Norway has signed agreement which ensures international cooperation on the operation of autonomous ships
Norway has signed an agreement with the United Kingdom, Belgium, Denmark and the Netherlands to facilitate cooperation on the international operation of autonomous ships. The agreement is particularly aimed at the operation of autonomous ships in the North Sea basin, including ships for inspection and maintenance of existing and future offshore wind installations.
Wikborg Rein Exclusive in All Chambers Europe Categories
We are delighted to announce that we have once again achieved top rankings in Chambers Europe. Wikborg Rein is the only Norwegian law firm ranked in all 19 categories.
The Crackdown on Price Cap Evasion and the BIMCO Russian Oil Price Cap Scheme Clause for Charter Parties
The BIMCO Russian Oil Price Cap Scheme Clause was long-anticipated when it was published on 2 June 2023. There has since been growing concern that the original Price Cap Measures were easy to circumvent, and in this article we examine the impact of the latest measures to combat such evasion.
Working conditions at Turkish yards and the Norwegian Transparency Act
Norwegian media has recently published a number of stories on the alleged poor working conditions at Turkish shipyards. Norwegian shipowners contracting with foreign yards must be prepared to provide information on their efforts to ensure decent working conditions pursuant to the Norwegian Transparency Act.
EU ETS: New clarifications on the allocation of shipping companies to the administering authorities
On 31 January 2024 the EU Commission published their anticipated list showing which shipping companies shall be associated with the different administering authorities of the member states under the EU ETS.
Key FSRU assets transferred by Dynagas to Energos Infrastructure
In a significant move within the LNG maritime sector, Wikborg Rein expertly guides Greek shipowner client Dynagas through its sale to Energos Infrastructure of two state-of-the-art Floating Storage and Regasification Units (FSRUs), Transgas Force and Transgas Power.
Nye partnere fra egne rekker
Vi gleder oss over å ønske velkommen tre nye interne tilskudd til vårt partnerskap i Kristin Nordland Brattli, Martin H. Bryde og Stian Holm Johannessen.
Suppose you went to arbitration and the opponent did not come?
In arbitration, you have to prove your case even if the opponent does not show up. The no-show creates some pitfalls to avoid.
Limitation of liability in light of the MSC Flaminia (No. 2) appeal decision.
The Court of Appeal in London has given further guidance on charterers’ ability to limit liability following the High Court decision in the MSC Flaminia (No. 2) reported in our December 2022 edition, giving some important clarification to the types of limitation claims charterers can make.
Protection of private parties’ interests in investigations by the Norwegian Safety Investigation Authority
The Norwegian Safety Investigation Authority is tasked with conducting safety investigations into maritime accidents if they either involve Norwegian flagged ships, take place in Norwegian waters or involve significant Norwegian interests. Its reports may be important evidence in civil and criminal proceedings arising out of the casualty. The ability of private parties to protect their interests in respect of civil claims and criminal liability may therefore depend on the extent to which their interests are protected in connection with the investigation.
The Hong Kong Convention finally set to enter into force – a gamechanger?
With the recent accessions by Liberia and Bangladesh, the Hong Kong Convention on ship recycling, which was adopted in 2009, will finally enter into force on 26 June 2025. On 30 November 2023 there was a further breakthrough by Pakistan’s accession, which means that all major recycling states have now committed to the Convention. What will be the practical implications? How will the Convention mesh with the existing regulations?
FuelEU Maritime Pooling – A new commercial opportunity for shipping companies?
The FuelEU Maritime Regulation introduces a voluntary pooling mechanism. If shipping companies choose to use the pooling mechanism, they may effectively use the over-performance of one ship to compensate for the under-performance of another ship. This could present new commercial opportunities for shipping companies.
BIMCO Ship Sales Further Trading Clause 2023 – protecting the seller against unlawful recycling
On 11 October 2023 BIMCO adopted the Ship Sales Further Trading Clause 2023, which is designed to be included in memoranda of agreement for the sale and purchase of vessels, such as BIMCO’s Saleform and Shipsale standard form contracts. The clause is intended to provide protection for the seller against the buyer’s subsequent disposal of the vessel in contravention of any regulations related to ship recycling. It seeks to achieve this by imposing an obligation on the buyer to continue to trade the vessel within an agreed post-sale period. The clause is particularly relevant for the sale of older tonnage.
Clarification on responsible entity under EU ETS (the "shipping company")
The inclusion of the shipping industry in the EU Emission Trading System as per Directive 2003/87/EC ("the EU ETS") from 1 January 2024 is now fast approaching. According to Article 3 in the said directive, it is the "shipping company" that is responsible for compliance with the EU ETS-obligations, hereunder to surrender emission allowances.
We have assisted DIF Capital Partners and EDF Invest with their acquisition of Fjord1
We have assisted DIF Capital Partners (via its DIF Infrastructure VII Fund) and EDF Invest (the investment arm of the EDF Group in real assets) with entering into a definitive agreement to acquire Fjord1, the largest owner and operator of ferries in Norway. Subject to closing of the transaction, Fjord1 will be acquired from Vision Ridge Partners and Havila Holding. Vision Ridge and Havila Holding have been investors in Fjord1 since 2019 and 2011, respectively.
BIMCO Publishes Price Cap Clause for Charterparties
The long-anticipated BIMCO Price Cap Clause was published on 2 June 2023, in response to the price caps on Russian origin crude-oil and petroleum products introduced by G7, EU and others. In this article we take a practical first look at the clause in context.
Life after subsidies in the offshore wind market in China
Offshore wind power is a promising renewable energy source that can help the world achieve its carbon neutrality goals and China is one of the world’s largest offshore wind markets. However, the Chinese offshore wind sector is changing, especially after the government subsidies for offshore wind projects were phased out at the end of 2021.
Launch of offshore wind tenders for Sørlige Nordsjø II and Utsira Nord
On 29 March 2023, the Norwegian Government announced the opening of Norway’s first offshore wind tenders in the areas Sørlige Nordsjø II and Utsira Nord.
Emission allowances trading
The European carbon market has grown substantially since its start in 2005. With the extension of the EU ETS to include the shipping sector, and an annual reduction of more than 4% of the overall number of emission allowances in the market, the price is expected to rise. This means an increased need and interest amongst stakeholders to understand how trading with emission allowances is regulated.
Using well-boats in Norwegian aquaculture – a complicated legislative framework
In addition to complying with private contracts with fish farmers and general shipping regulations, well boat operators have to comply with certain aquacultural rules. For anyone operating in the well-boat market, basic knowledge of this regulatory framework is crucial.
Transportation of live fish – contracting out of liability for cargo damage
To meet the demand for the transportation and handling of live fish, fish farmers can either charter well-boats or enter into general contracts for carriage of goods. The type of contract used will determine the shipowners’ possibility to limit liability for loss or damage to live fish during transportation.
Charter payments and sanctions – an update from the Commercial Court
In a summary judgment relating to a dispute arising out of the charterers’ failure to make hire payments under bareboat charterparties, the Commercial Court provides guidance on the impact of sanctions on the parties’ obligations to make payment.
Nordic Plan vs. ITCH – what are the main differences?
The Nordic Marine Insurance Plan of 2013, now in its 2023 version, is the preferred choice of insurance conditions for vessels and mobile offshore units in the Nordic market for all standard non-P&I insurances. The Nordic Plan is also gaining popularity with insurers and owners outside the Nordic countries. Previously those insurers and owners would often turn to the Institute Time Clauses Hulls of 1983 (ITCH) developed by the London market. This article considers some of the key differences between the two sets of conditions.
Insurers may deposit insurance payments under the Nordic Plan
In the first arbitration award known to have been rendered under the new procedural rules of the Nordic Offshore and Maritime Arbitration Association (NOMA), the tribunal clarified that the insurers’ right under Norwegian insurance law to deposit insurance payments with liberating effect, also applies to co-insurance pursuant to the Nordic Marine Insurance Plan (Nordic Plan).
Insurers prevail in landmark Nordic Plan CTL judgment
Following a long legal battle before the Norwegian courts, the Court of Appeal has dismissed a claim by the owners of the vessel “Champion Express” for a constructive total loss (“CTL”) under the Nordic Plan. Wikborg Rein acted for the insurers in what has been the first Norwegian judgment on CTL since the now 31 year old ND-1992-172 Berglift judgment.
The High Seas Treaty – implications for shipping
After several years of negotiations, an intergovernmental conference at the UN has reached an agreement on a draft treaty aimed at conserving marine biodiversity in areas beyond national jurisdiction. The treaty has a potential to significantly impact international shipping.
War risks cover for ships trapped in Ukraine – CTL and the Nordic perspective
The Russian invasion of Ukraine continues to cause uncertainty in the marine insurance market, in particular as a result of a potentially large number of total loss claims from owners of vessels that have been trapped beyond 24 February 2023, which marks the one-year anniversary of the full-scale invasion.
De-risking China – international companies respond to pressure to diversify supply chains
The world relies heavily on China for its supply chains and access to strategic resources. Whilst the geopolitical risk may be increasing, a complete decoupling is still undesirable for most companies. Faced with mounting pressure to diversify out of China, many foreign companies are therefore exploring alternative de-risking strategies to help with effective supply chain diversification and key-asset distribution.
EU Emissions Trading System applies for shipping as from 1 January 2024
The EU Emissions Trading System (EU ETS) has been reformed to include maritime emissions as from 1 January 2024.
The Thorco Lineage
The decision relates to an application pursuant to s.45 of the Arbitration Act 1996 for the determination of a point of law by the Court. The point related to the way in which the limitation sum under Article IV (5)(a) of the Hague Visby Rules ("HVR") is to be calculated where there is both physical damage and economic loss to the cargo.
Safety first: The position on demurrage
The High Court has clarified when a shipowner may disregard charterers' voyage instructions without interrupting demurrage, in a decision which underlines the obligation on voyage charterers to choose safe ports and safe berths for the vessel to proceed to.