BIMCO’s Documentary Committee has agreed to a major overhaul of the Dispute Resolution Clause with the aim to shorten and simplify BIMCO’s longest standard clause.
Specifically, during the bi-annual meeting in Copenhagen, December 5, the attendees agreed on simplifying the clause, mostly by removing the mediation provision that was added to the clause in 2002.
In continuance, it was agreed that they will publish a new free-standing mediation clause, for those who are interested to invoke in mediation or part of a dispute, once arbitration proceedings have recommenced.
Additionally, one of the most crucial changes would be the addition of Hong Kong as a fourth named arbitration venue. This means that the BIMCO clause will be converted to a single provision that operates with any of the named arbitration venues.
In the updated new clause users will have the opportunity to opt for the applicable law, place of arbitration, number of arbitrators and the procedural rules to give effect to the clause.
For the time being BIMCO is under discussions on the wording of the new clause with arbitration service providers in London, New York, Singapore and Hong Kong, and the new clause will be submitted to the Documentary Committee for approval in May 2020.
