FuelEU 2026: Managers on the hook

2026 is an important year for ship managers because the first FuelEU Maritime reporting cycle enters its verification and compliance phase, significantly increasing the risk of liability exposure. FuelEU applies to whoever is the responsible company under the International Safety Management (ISM) Code (owner, manager, or charterer), and in practice this is most commonly the technical manager. The manager therefore must ensure accurate reporting, maintaining verifiable data. Any error in data submission, record‑keeping, or interpretation may result in administrative penalties, financial exposure, or contractual disputes.

The first milestone was on 31st January 2026, when managers were required to submit verified 2025 GHG intensity data for each ship. Throughout the first quarter, managers must finalise their compliance position, confirm pooling or banking arrangements, and prepare their formal compliance statements. By 30th June 2026, each ship must carry a valid FuelEU Document of Compliance. Every one of these steps carries potential risk: an incorrect calculation, a missed verification step, or an unrecorded operational exception can all lead to costly findings of non‑compliance.

A major challenge stems from the misalignment between legal liability and operational control. Managers remain accountable for FuelEU compliance, yet charterers often dictate fuel type, bunkering decisions, voyage patterns, and port behaviours. This creates a liability gap in which the manager bears responsibility for emissions outcomes without controlling the commercial decisions that influence them. If a charterer selects a higher‑intensity fuel or fails to use Onshore Power Supply (OPS) where required, the resulting non‑compliance rests with the manager unless contractual provisions clearly allocate responsibility. Without the appropriate clauses in place, managers risk penalties and claims even where the operational decision‑making is sat elsewhere.

To protect themselves, managers should ensure that the BIMCO FuelEU clause is incorporated into 2025 and 2026 agreements. This clause allocates costs, liabilities, and any surplus credits to the correct party and reduces the risk of disputes with owners and charterers. Consecutive years of non‑compliance may also result in stricter enforcement, potentially including port access restrictions, which could expose managers to delay‑related claims such as loss of hire.

FuelEU also increases the likelihood of administrative mistakes. Manual record‑keeping brings risks such as incomplete data, inconsistent formats, or overlooked OPS usage. In the event of a dispute or investigation, managers must demonstrate that monitoring was accurate, consistent, and properly logged. Using verified digital systems, such as those offered by OceanScore or Lloyd’s Register OneOcean, reduces these risks through real‑time tracking, automated OPS logging, and auditable data histories. These systems support compliance and help managers defend against allegations of misreporting or mismanagement.

FuelEU ultimately shifts significant regulatory and contractual risk onto ship managers. Robust contractual protections and reliable digital compliance systems are essential to reducing the likelihood of disputes and ensuring defensible compliance. 

ITIC is here to defend ship managers against allegations of negligence made by owners, providing experienced support in resolving such disputes.