Monday 27th May, Paris
The Documentary Committee gathered for its centenary on Monday 27 May at the Hotel Westin Vendome in Paris where the first meeting was held in 1913.
Chairman, Mr. Karel Stes, welcomed BIMCO President, Mr. Yudhishthir Khatau, members of the Executive Committee, Honorary Member Mr. Nils-Gustav Palmgren and past Documentary Committee Chairmen Mr. John Urquhart and Mr. John Tsatsas to the meeting.
There was a full agenda before the committee of some forty-five ship owner and club representatives. Ten provisions were approved comprising one charter party, eight clauses and a revised set of laytime definitions followed by a review of work in progress and proposals for new projects.
Time charter for the twenty first century
It was fitting that at its centenary meeting the Documentary Committee adopted a new purpose-designed time charter party for the twenty-first century offshore wind-farm industry. The new document, WINDTIME, has been modelled on the trades current usage of SUPPLYTIME 2005 which has been adapted for the employment of specialist small transfer vessels, often operating on the basis of a 12 hour rather than a 24 hour working day, carrying in the order of twelve passengers to and from offshore wind-farm sites
The new document has been developed over a two year period through a sub-committee comprising ship owners, charterers, lawyers and P&I club correspondents. Practitioners views were also taken into account through consultation with the offshore industry. Publication is imminent.
Virtual arrival
Slow steaming to meet virtual arrival requirements provides scope for financial savings from lower bunker expenditure and reduced waiting time at destination. A voyage charter party clause has therefore been under development to provide a framework for agreeing a virtual arrival regime. Nevertheless, such arrangements are complex and necessarily involve co-ordination with other parties in the transport chain to ensure that advantages gained during the voyage are not lost through delay on reaching a port or terminal. A draft clause, deferred for further consideration from the November meeting, was adopted subject to minor adjustment.
The IMO Maritime Labour Convention (MLC) 2006, which comes into effect on 20 August this year, imposes strict obligations on owners in relation to the welfare and on-board condition of seafarers. The term seafarer is broadly defined in MLC with flag states free to determine the scope of seagoing personnel to be covered in their domestic legislation. However, seagoing personnel are not necessarily employed by owners with, for example, geologists engaged directly by charterers on supply vessels and the employment of seafarers under ship and crew management agreements.
Clauses have therefore been developed, and were adopted, for CREWMAN A/CREWMAN B, SHIPMAN and SUPPLYTIME apportioning party liability and responsibility for on-board personnel not directly employed by owners. A similar provision is now being considered for GUARDCON to address the position where security guards do not come within a flag states definition of seafarer. Proposals will be put forward for fast track approval.
Hull Fouling Clause
Following work since the November meeting to refine the content of a draft provision, approval was given to a new Hull Fouling Clause for Time Charter Parties. The content sets out a regime holding charterers liable for the costs and process of inspection and, where necessary, cleaning underwater parts when, in response to their orders, a vessel is required to wait at anchorage beyond an agreed number of days or, in default of agreement, 15 days. It also provides a mechanism for agreeing a lump sum payment to cover owners costs and expenses where cleaning cannot be carried out before redelivery.
The IG Oil Pollution Indemnity Clause for Penalties and Fines was developed through the International Group of P&I Clubs in response to new legislation in Australia extending criminal liabilities for pollution offences to charterers. Concerns were voiced at the last meeting that the indemnity provisions, aimed at preserving the pre-legislative position, could be prejudiced in the event of a claiming partys contributory negligence. Following discussions with the International Group, the content has been modified so that the right of recovery is not lost where there is contributory negligence but the quantum will be reduced in proportion to the degree of fault.
Cargo residues and cleaning agents harmful to the marine environment
Amendments to MARPOL Annex V, which took effect from 1 January this year, impose restrictions on the disposal of cargo residues and hold washing water containing materials that may be harmful to the marine environment (HME). The new obligations have been reflected in a revised version of the BIMCO Hold Cleaning/Residue Disposal Clause for Time Charter Parties where charterers obligations have been extended to include the management and disposal of cleaning agents and additives.
While hold cleaning and residue disposal would normally be owners responsibility under a voyage charter, the classification, but as yet absence of any formal definitions, of HME cargoes, the resulting restrictions on disposal of residues and hold washings and, often, the lack of port reception facilities, argue for an exception with costs and responsibility for disposal being passed to charterers. Text is being developed for approval through the fast-track procedure.
War and Piracy Clauses revised
Agreement was given to revised versions of the CONWARTIME and VOYWAR war risks clauses, respectively for time and voyage charters. The main changes include: a clearer basis for determining war risks by reference to the level of danger; the definition of piracy broadened to cover violent robbery and/or capture/seizure; clarification of charterers liability for reimbursing owners additional insurance costs together with the costs of any additional war risk related insurances required by owners; and insertion of a statement of owners liberty to comply with requirements under the terms of the vessels insurance which could include reporting to UKMTO and following Best Management Practice.
Revision of the Piracy Clause for Time Charter Parties was also agreed. The test for determining the existence of danger was adjusted in line with the war clauses. The provision whereby payment of hire ceases 90 days after seizure (although in all other respects the vessel remains on hire) has been maintained. Nevertheless, a new provision permits owners to take out additional insurances reasonably required in connection with piracy risks such as War Loss of Hire and maritime K&R (kidnap and ransom) with the costs recoverable from charterers. A vessel, once released, can be expected to require refurbishment. While this was not previously addressed, a new provision holds charterers liable for hire, or an equivalent amount if redelivery has taken place, for time lost due to repairs. Parallel changes have been made to the clauses for consecutive and single voyage charter parties.
Laytime Definitions
Laytime and demurrage represent an important, but complex, area of shipping practice and commercial law. It is therefore important that market users fully understand the meaning and implications of words and phrases, often reduced to abbreviations, which are agreed and inserted in charter parties every day. Definitions, originally developed by a group of ship owner organisations in 1980 and revised as the Voylayrules 1993, have again been under consideration by a sub-committee comprising representatives from BIMCO, the Baltic Exchange, CMI, FONASBA and INTERCARGO. Updated provisions, now restored to the original concept of definitions based on English law and setting out a comprehensive statement of the meaning of commonly-used expressions, were adopted as the Laytime Definitions for Charter Parties 2013.
Work in progress
A progress report was made on work to update the NYPE 93. The need to co-ordinate inter-continental interests between BIMCO, ASBA in the USA and the Singapore Maritime Foundation in Asia, has created its own logistical challenges but, with a joint meeting scheduled for the middle of June, it is hoped that a final draft will be ready for consideration by the Documentary Committee at its Autumn meeting in Copenhagen.
Work is underway to develop an agency-based pooling agreement for the dry and liquid bulk tramp sector. In contrast to the POOLCON contract issued last year where participating owners time charter their vessels to pool managers who act as principals in dealings with charterers, under the agency agreement, POOLCON B, pool managers will operate participants vessels but will contract with charterers as agents to owners. A number of technical issues are currently under consideration but the sub-committee expects to present a final draft for adoption in November.
The basis and content of a proposed Marine Risk Assessment Clause to protect owners interests in response to charterers inspection requirements, was reviewed together with concerns about the practicalities of inspections and need for greater transparency on the part of assessor interests. Work will continue to develop a suitable provision.
Other issues included a technical amendment to the US Anti-Drug Abuse Act 1986 Clause for Time Charter Parties, an update on a proposed Bunker Non-Lien Clause for Time Charter Parties and agreement to develop recommended amendments to GUARDCON in response to heightened security concerns in the Gulf of Guinea.
New projects agreed by the committee include the development of Ro/Ro Passenger Vessel Time Charter Party and the revision of the BIMCO Standard Bunker Contract.
Source: BIMCO
