Documentary Committee News

BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can ensure the charterers’ uninterrupted use of a ship if the owner defaults under the financing facility. The QELs will be provided by the lender to the charterer to ensure that the charterer, who does not have a contractual relationship with the lender but only with the owner, can continue to “quietly enjoy” the ship in case of the owner’s default.

BIMCO’s Documentary Committee has adopted a new Emission Trading Scheme Allowances Clause for BIMCO’s ship management agreement, SHIPMAN, and three ETS clauses for Voyage Charter Parties. The clauses aim to facilitate collaboration and provide clarity and certainty between parties as new regulations come into force, changing the way the industry operates to achieve compliance and cut emissions.On January 1, 2024, the EU Emissions Trading System (EU ETS) will be extended to cover CO2 emissions from ships of 5,000GT and above calling at EU ports, regardless of flag.

BIMCO’s Documentary Committee has approved a revised version of the Continent Grain Charter Party, SYNACOMEX, to reflect changes in the geopolitical landscape following events including the COVID-19 pandemic and the war in Ukraine. The revised charter party now includes BIMCO’s anti-corruption clause and updated versions of the war risks and sanctions clauses.The charter party is developed by joint copyright holders SYNACOMEX and Armateurs de France, the French Union for Grains and Seeds Trade and the French Shipowners’ Association.

BIMCO has developed a new Carbon Intensity Indicator (CII) Clause for Voyage Charter Parties. The clause was adopted by BIMCO’s Documentary Committee on October 11 and is the latest addition to BIMCO’s portfolio of carbon clauses.“As the shipping industry works towards decarbonization, the need for new contracts and clauses increases. We are working constantly to ensure that BIMCO’s contracts and clauses are fit for purpose as the regulatory landscape changes,” says Nicholas Fell…

Shipping association BIMCO said it has created a new standard contract for providing a balanced contractual framework for security escort vessels (SEV) that accompany merchant ships in high threat areas such as the Gulf of Guinea, which has recently seen a rise in piracy activity as the dry season has begun.The new contract is dubbed SEV-GUARDCON because it is based on BIMCO’s GUARDCON contract for the employment of security guards on board ships.“The escort vessel’s capabilities…

BIMCO’s Documentary Committee has approved two charter party sanctions clauses to help owners and charterers manage due diligence policies and navigate an increasingly complex environment of economic and trade sanctions imposed by governments.Sanctions have become a widely used geopolitical tool by governments. The rules are complex, imprecisely drafted, often changing, and the risks of violation can be high. The necessity of sanctions clauses that provide contractual certainty has prompted BIMCO to revise…

Law firm HFW said it has helped shipping association BIMCO draft an industry standard offshore decommissioning contact.The contract – DISMANTLECON – has been approved by BIMCO's Documentary Committee and will be released at the end of June, along with guidance notes. It can be used for removal of any offshore field architecture, including pipelines, mattresses, manifolds, jackets, topsides, platforms and monopole structures.HFW, which also recently helped BIMCO draft its first…

BIMCO, the largest of the international shipping associations representing shipowners, said that it has revised and updated its two standard ship repair contracts: REPAIRCON, which is for major work at a repair yard; and MINREPCON, which is for minor repair work that can be done by contractors when a ship is in port.Both contracts were approved at BIMCO’s Documentary Committee in Copenhagen on 13 November. Modifications and improvements have been made to the REPAIRCON contract, while MINREPCON has undergone a full review, said a release from the company.“Ship repair is a major undertaking and it’s important that both parties are fully aware of their respective part in the process.

The Baltic and International Maritime Council (BIMCO) has developed two bunker clauses to support the implementation of International Maritime Organization’s (IMO) sulphur 2020 regulations, which come into force on January 1, 2020.The largest of the international shipping associations representing shipowners poited out that the  Global Marine Fuel Sulphur Clause for Time Charter Parties was approved by the Documentary Committee at its meeting in Copenhagen on 13 November.“It is very important that the new sulphur clauses are ready well in advance to allow the parties to prepare ahead of 1 January 2020,” says Peter Eckhardt, chairperson of the drafting committee and Head of Chartering and Operations at Reederei F.

BIMCO’s Documentary Committee approved a new set of standard bunker terms, developed by a cross-industry group, in New York on 2 May. The BIMCO Bunker Terms 2018 improve on the previous edition with a maximum limit of the parties’ liabilities – a key change that will lead to wider adoption of the contract. “I think it is a positive step for the industry that representatives for the bunker traders and shipowners have agreed on a standard set of terms, which both parties consider fair and balanced,” says Francis Sarre, Chair of the BIMCO Documentary Committee. The trader representatives who helped draft the contract together account for 25% of the total bunker volume sold globally, which BIMCO sees as a very strong sign of support for the final result.

BIMCO and FONASBA have once again joined forces to create and launch a new general agency agreement for port agents, shipowners and ship operators contracting port agency services. The new standard contract, which can be downloaded from the FONASBA website and BIMCO’s IDEA, formalizes and sets out clear terms for any agreements made, for the benefit of both sides. Drawn up by the group responsible for drafting the Agency Appointment Agreement which was released earlier this year, the new contract is easy to use and can readily be adapted for single use or a long-term contract. Parties can select their requirements from a list of functions such as sales and marketing, port or general agency and husbandry and can agree other services to suit their needs.

FONASBA and BIMCO have launched a new Agency Appointment Agreement document. This new form, which is based on BIMCO’s tried and tested box layout, provides a simple, clear and effective means of confirming the details of an agency agreement for an individual or short series of port calls. Many agency appointments are agreed on the basis of a telephone conversation or simple exchange of emails and this new form formalises that exchange by clearly setting out the details of both parties, the basis of the remuneration and, importantly, stating the responsibilities and obligations of the parties to the agreement. The agreement was drafted over a period of some eight months by a small group comprising senior members of FONASBA and BIMCO.

In a landmark decision, BIMCO cemented its move into the domain of ship financing with the Documentary Committee’s approval of a standard term sheet for use in ship financing transactions on 17 November 2016. The term sheet has been drafted as a short and simple standard for use in bilateral ship financing transactions concerning term loan facilities. It has been prepared in the well-known BIMCO format and is indicative/non-binding, as this is considered to be the market standard. BIMCO President Philippe Louis-Dreyfus said: "I am particularly pleased to see BIMCO taking this important step. BIMCO is the world leader in the production of standard contracts and clauses for the maritime industry.

Three of the world’s largest bunker suppliers, including World Fuel Supplies and Dan Bunkering, have joined a team of industry experts to review BIMCO’s standard bunker contract – BIMCO Terms 2015. Shipowners will be represented by Denmark-based J Lauritzen and Norden. Legal and P&I input comes from Clyde & Co and the North of England P&I Club. The initiative is supported by the International Bunker Industry Association (IBIA) who will have a representative on the team. BIMCO Terms 2015 are increasingly accepted by suppliers and traders around the world as a fair and balanced set of terms and conditions for purchasing and delivering marine fuels.

The International Spill Control Organization (ISCO) and BIMCO are working together to develop a standard contract for spill response services. The contract is expected to be published by the end of the year. The Spill Response Services and Equipment Contract is designed for situations where a spill incident occurs and the shipowner or other stakeholder (the “requesting party”) needs to contract for clean-up services, counter pollution measures, and hire of equipment. Terms and conditions are set out in standard clauses with accompanying annexes for parties to insert detailed descriptions of the required services and rates for personnel and equipment. Emergency situations require a prompt response.

BIMCO’s Documentary Committee, who met in Copenhagen yesterday, have agreed that all new and revised BIMCO charter parties and bills of lading will now refer to general average being adjusted in accordance with the new York-Antwerp Rules (YAR) 2016. The YAR 2016 were adopted by the Assembly of the Comité Maritime International (CMI) at its 42nd International Conference held last week in New York. The YAR 2016 largely reflect the YAR 1994, which BIMCO has to date recommended as the basis for general average adjustments, while containing some useful clarifications and additions such as on low value cargoes. Importantly, it has been agreed that an annual interest rate of LIBOR plus 4 percentage points applies according to the new rules…

In general, the International Union of Marine Insurance (IUMI) welcomes the revised York-Antwerp Rules (YAR 2016) which were adopted by the Comité Maritime International (CMI) at its conference in New York last week. The York-Antwerp Rules (YAR) is a set of rules by which General Average (GA) is adjusted (see detailed explanation in the notes below). IUMI has a particular interest in their content as, on average, the GA system increases the cost of maritime casualties by between 10%-30% largely due to interest (7% p.a. under the 1994 and 1974 YAR), commission (2%) on nearly all expenses and sacrifices, and adjusters' fees. The process of collecting GA security from all the cargo interests…

The twice yearly meeting of BIMCO’s Documentary Committee took place in Hamburg on 19 November. In his first meeting as Chairperson of the Committee, Belgium’s Francis Sarre presided over the adoption of several new contracts and clauses and an update of BIMCO’s extensive suite of bills of lading and waybills. Two new owner representatives joined the Committee from Canada and Brazil, reflecting the importance of the Americas in BIMCO’s global coverage of documentary matters. In addition to the adopted contracts and clauses, the Committee also heard and commented on progress reports on a number of ongoing projects and agreed to start work on several new items. The first of the newly adopted contracts was the LNGVOY Voyage Charter Party for the transportation of liquefied natural gas.

Last night in Hamburg, BIMCO President Philippe Louis-Dreyfus chose to give public recognition to all seafarers who have been – and still are – involved in rescuing people in distress at sea. Mr. Louis-Dreyfus awarded the BIMCO President’s Award to Columbia Shipmanagement Hamburg, for their “outstanding” work in rescue operations involving migrant boats in the Mediterranean. He asked Captain Horber from Columbia Shipmanagement to accept the award on behalf of their crews, but also on behalf of all seafarers who risk their lives in rescue operations. Shipping professionals attending the event saw a video showing the events of an evening in September 2013 when a Columbia ship…

INTERTANKO’s documentary committee has launched bunker surcharge clauses for Emission Control Areas (ECA). Rising bunker prices due to rising oil prices and volatility in global politics can have a dramatic effect on trade as they fluctuate not just day to day, but also port to port. Bunker fuel costs today form the largest part of owners’ expenses, ranging from 40-60% of the overall operating costs of a ship. The tightening of regulations in Emission Control Areas (ECAs) requiring the use of low sulphur content fuels not only carries with it the risk of fines…

BIMCO says that its sub-committee of purchasers and suppliers tasked with revising BIMCO’s standard bunker contract met again recently at BIMCO House to review comments received from the Documentary Committee and the Singapore Shipping Association (SSA). BIMCO explains that it met the SSA earlier this year to explain the purpose of the revision to develop a bunker purchase contract that would gain global acceptance. Since that meeting, the SSA has formed a committee to examine the contract and their first meeting generated valuable comments and suggestions on the latest draft. BIMCO is represented on the SSA committee by Mr. Y K Chan…

BIMCO has published its Reflections 2014, a short and accessible analysis including its clear views on the critical issues faced by the shipping industry today and in the coming years. Not least, the steady improvement of the global economy is bettering the outlook for shipping, as demand goes up and fleet expansion growth cools off, the market fundamentals are expected to improve across the board. Windows of sustainable earnings are likely to occur more often going forward. But the regulatory burdens, notably those seeking to address environmental pressures, remain major challenges to the industry’s cost base at a time when resources are limited. This includes massive challenges on sulphur limits, ship efficiency, ballast water treatment and NOx regulation.

The new president of BIMCO, John Denholm, has identified environmental pressures facing the shipping industry as some of its most significant current challenges as he embarks upon his two year term. Speaking in Paris, as he took over the presidency of the shipping organization from Yudhishthir Khatau, Mr. The third BIMCO President from the Glasgow family shipping company, Mr. Denholm said that the challenges currently being faced by the industry are “more difficult and more complex” than those of the past.