New clause tackles AGM inspection and certification requirements

Some authorities require the vessel to be certified free of AGM

The risk of infestation by Asian Gypsy Moth (AGM) is a perennial problem for vessels trading in the Far East during the female moth’s flight season. The risk is particularly high in Korea, Japan, Northern China and the Russian Far East.

A number of countries are highly alert to the risk of this invasive and destructive species – notably the USA, Canada, Chile, Australia and New Zealand. Regulations in those countries generally require all vessels arriving in their ports to declare whether they have traded to ports within the high risk areas in season during the past two years. Some authorities also require the vessel to be certified free of AGM.

According to Pernille Jacobsen, Legal and Contractual Affairs Officer at BIMCO “Although charter party clauses addressing Asian Gypsy Moth are in circulation, these clauses often contain specific geographical regions and dates for high risk seasons. As there is no uniform international definition of the high risk areas or flight seasons, the use of these clauses may create uncertainty“. She added “To tackle this issue BIMCO has begun work on a generic Asian Gypsy Moth Clause for Time Charter Parties which provides a commercial solution to this problem focusing on the basic obligations and responsibilities of the owners and the charterers in respect of AGM“.

The new clause places a strict obligation on the owners to deliver the vessel free of AGM with a reciprocal obligation on the charterers at redelivery. Both parties must also provide AGM-free certificates at the relevant time.

During the performance of the charter party, the obligation to reduce the risk of infestation resulting from the vessel’s trading pattern rests with the charterers. This obligation not only extends to the ports where the charterers may order the vessel, but also to any cargo loaded on board which may be infested. The provision of phytosanitary certificates or similar during the charter are also the responsibility of the charterers as are the consequences resulting from found or suspected infestation.

The first draft of the BIMCO AGM Clause for Time Charter Parties was prepared at a meeting at BIMCO House on 23 June. The draft Clause will be circulated to members of BIMCO’s Documentary Committee for review and comment prior to the November meeting of the Committee where it will be considered for adoption. If approved, the AGM Clause will be incorporated in to the revised NYPE charter party as well as made available as a free-standing clause for incorporation into other time charter parties.

Source: BIMCO