BIMCO’s Documentary Committee approved new standard bunker terms, developed by a cross-industry group, in New York on 2 May. The BIMCO Bunker Terms 2018 aim to improve the previous edition, providing a maximum limit of the parties’ liabilities, something that is considered as a key change, that will lead to wider adoption of the contract.
The trader representatives who helped draft the contract account for 25% of the total bunker volume sold globally, which, according to BIMCO, is a very strong sign of support for the final result. IBIA will also support The BIMCO Bunker Terms 2018.
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Francis Sarre, Chair of the BIMCO Documentary Committee, hopes that new contract will improve and speed up bunker transactions, while also reduce disputes.
We all need to improve efficiency and cut costs. With a widely used standard contract all parties involved should save time on drafting contracts and get greater clarity on the contractual obligations and liabilities in the contract. This will hopefully bring more transparency to the bunker industry.
The BIMCO Bunker Terms 2018 include a limit of the invoice value or $500,000, whichever is higher. The $500,000 is just a default minimum figure that the parties can increase if needed.
