Bimco Documentary Committee News

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.

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.

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…

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…

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.

The standard charter party laytime definitions known as 'VOYLAYRULES' are being updated to reflect developments in case law & commercial practice. VOYLAYRULES, which are jointly produced by BIMCO, FONASBA, INTERCARGO and CMI, last published in 1993, provide a set of standard definitions for commonly used charter party laytime terms which can be incorporated in whole or part into charter parties. Their purpose is to help reduce charter party disputes on matters of interpretation of laytime provisions. The project to update VOYLAYRULES is being carried out by a small drafting team of representatives from each of the sponsoring organisations with the support of the Baltic Exchange (who publish a similar set of charter party definitions in their Baltic Code).

BIMCO’s Documentary Committee, chaired by Mr Karel Stes, gathered in Singapore for its spring meeting on 23 April. The Committee’s contract experts reviewed a number of new contracts and clauses dealing with a wide variety of topical subjects ranging from wind farms to solid bulk cargoes that can liquefy. A new standard pooling agreement was adopted following two and half years of development work. Also adopted by the Committee were three new standard clauses covering EU advanced cargo declaration requirements under voyage charter parties; slow steaming under a voyage charter; and a clause addressing the very topical issue of solid bulk cargoes that liquefy.

During the past 12 months the industry’s most widely used standard contract for the sale and purchase of secondhand ships, SALEFORM 93, has been the subject of a revision process by the Norwegian Shipbrokers Association (NSA) and BIMCO. The objective of the revision of SALEFORM 93 has been to bring this well used form in line with current commercial practice and legal developments. An important part of the revision process is to give the wider industry the opportunity to review and provide feed-back and comment on the revised draft prior to the contract being considered for adoption by BIMCO’s Documentary Committee in November. The NSA and BIMCO have organized a series of consultations…

widespread use throughout the industry. "Barecon 89" would benefit from an update to reflect changes in modern bareboat chartering practice. "Barecon 2001" Standard Bareboat Charter which is the result of two year's work by a specialized sub-committee. a number of welcome new provisions covering areas such as termination and repossession. improve their clarity and to remove any potential ambiguity. inspection, maintenance, operation, insurance and repairs. mediation provision. The new "Barecon" will be published in the early part of 2002. The "Baltime 1939" form is probably among BIMCO's best-known charter parties. other than the introduction of a box layout in 1974.

Last week it was announced that BP Amoco Shipping and BIMCO had developed a new charterparty, as the BIMCO Documentary Committee gave its approval to a new standard tank time charterparty, code named BPTIME3. BP Amoco Shipping, which has a long tradition of developing tank charterparties, saw it as its objective to draft a new time charterparty applying clear language and striking a good balance between the two parties. "We wanted to draw up a charterparty that is easy to read, easy to use and reflects the interests of both parties," said Adrian McMahon, BP Amoco Shipping's Manager Chartering and Operations. "We felt that in order to ensure that the right balance was struck it was important to bring the ship owners into the process…