Tuesday, October 26, 2021

Tag: clauses

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New BIMCO Clause challenges ‘RIGHTSHIP approval’ provisions use

Dry Bulk Marine Risk Assessment Clause for Time Charter Parties A new standard clause published by BIMCO challenges the widespread use of so-called "Rightship approval" provisions commonly inserted into time charter parties. Dry cargo shipowners have for some time been under pressure to accept "home-made" clauses that oblige them to warrant that their ship will be "Rightship approved" throughout the term of the charter party.In reality, the Rightship vetting agency does not issue and never has issued period approvals for vessels. Instead, their dynamic system relies on publicly available information about merchant vessels to provide a "snapshot" recommendation of a vessel for a particular voyage based on data currently held on their databases.To help owners and operators avoid falling into the trap of warranting continuing compliance by their vessel when factors affecting its status at any given time may be outside their control, BIMCO has prepared a clause setting out a contractual regime for the application of marine risk assessments. Key to the clause is that while the charterers have every right to conduct desk-top based risk assessments to assess the suitability of the vessel for prospective employment, the owners do not warrant the acceptability of the vessel. This means ...

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