BIMCO Special Circular on Voyage HME Cargo Clause published
A new clause for voyage charter parties has been published for the disposal of cargo residues and washing water from cargoes that are hazardous to the marine environment (HME). It has been developed in response to amendments to MARPOL Annex V that came into effect in 2013.
Amendments to MARPOL Annex V covering the disposal of cargo residues and hold washing watercontaining materials that may be “harmful to the marine environment” (HME), took effect in January2013.
In July 2013, a revised version of the BIMCO Hold Cleaning/Residue Disposal Clause for TimeCharter Parties was issued (see Special Circular No. 6 – 18 July 2013) holding charterers responsiblefor the costs and time of removal and disposal of HME cargo residues and hold washing water.
Under a voyage charter party, cargo residue removal and disposal would normally be for owners’account. However, there is at present no definitive list of HME substances, leaving determination tobe made subjectively by reference to listed criteria. In turn, this relies on the accuracy and integrityof shipper declarations or decisions made by port or other officials.
This, in itself, is an unsatisfactorysituation and when coupled with the lack of suitable cargo reception facilities in many ports, exposesowners to the risk of unexpected additional costs which might not be easily recovered from acounterparty.In order to address the circumstances set out above, a new Clause has been developed.
Under thisprovision, the normal position is reversed so that charterers are responsible for additional costsincurred in connection with the removal and disposal of HME cargo residues and/or hold washingwater.
The provisions are contained in three sentences. The first sentence sets out the key elements of theClause covering the triggering mechanism and charterers’ resulting responsibilities and liabilities.
BIMCO HME Cargo Residues Disposal Clause for Voyage Charter Parties
If the cargo is harmful to the marine environment (HME) in accordance with MARPOL Annex V, theCharterers shall be responsible for all extra costs and time and/or losses incurred by the Ownersassociated with the storage, removal and disposal of HME cargo related residues and/or holdwashing water. Compensation for such extra time shall be in an amount equivalent to the rate ofdemurrage stipulated in the charter party. Storage, removal and disposal shall always be inaccordance with MARPOL Annex V or other applicable rules
The full text of the HME Cargo Residues Disposal Clause for Voyage Charter Parties can be downloaded free of charge from the Chartering/Clauses section of theBIMCO website.
Source: BIMCO Special Circular