Tag: clauses

The shipping industry is facing an increase in new regulations from the International Maritime Organization (IMO) and the European Union (EU) and an increase in the urgency to decarbonise.

The BIMCO CII clause has been developed to help address the commercial complexities of the CII regulation entering into force on 1 January 2023. The regulation was adopted at the IMO despite attempts by the industry to point out the potential pitfalls of the CII formula.

With the requirements for CII certification coming into effect on 1 January 2023, three Reed Smith shipping lawyers explain the BIMCO CII Clause for Time Charters.

Work to revise the BIMCO War Cancellation Clause 2004, the BIMCO War Risks Clause for Time Chartering 2013 (CONWARTIME 2013) and the BIMCO War Risks Clause for Voyage Chartering 2013 (VOYWAR 2013) clauses has begun.

The complex CII regulations, effective from January 2023, are expected to significantly impact the future operation of ships. Shipowners and charterers must embrace new ways to co-operate, and new clauses for charter parties will be needed to help owners and charterers succeed.

In 2021 BIMCO initiated a project to develop a suite of LNG fuel clauses for time charter parties. The number of LNG fuelled ships in operation is growing steadily and the suite reflects the need to have bespoke clauses in time charters for these ships.

The ‘New Jason Clause’ has been recommended for many years for inclusion in contracts for the private or common carriage of goods, particularly if the trade involves US law or cargo shipped to or from the US.

BIMCO’s Documentary Committee has adopted a standard electronic signature clause that allows parties to safely use electronic signatures in their contractual arrangements.

In order to enhance wider adoption of just in time (JIT) arrival principles in the bulk sector, BIMCO issued a new clause for voyage charter parties to promote more efficient shipping procedures and as a result, help reduce CO2 emissions.

The COVID-19 situation has triggered, among others, a huge number of oil tankers being time chartered for floating storage purposes due to the collapse in oil prices. BIMCO is receiving enquiries about “floating storage” clauses and questions about what additional wording owners should consider adding to their time charters.