‘Virtual Arrival’ Clause – owners adjust the speed under a voyage charter at an agreed date ,time
Building on the provisions set out in the previously published BIMCO Slow Steaming Clauses, a new “Virtual Arrival” Clause has been developed which permits charterers to request the owners to adjust the speed of the vessel under a voyage charter to arrive at a loading or discharging port at an agreed date and time. Like the Slow Steaming Clauses, any reduction in the vessel’s speed in accordance with the clause will not be considered a breach of the owners’ due despatch obligations.
The purpose of the clause is to assist owners and charterers who want to operate a Virtual Arrival scheme which can result in benefits to both parties through reduced fuel consumption (and consequently emissions) and less waiting time at ports (demurrage bills). Unlike slow steaming, Virtual Arrival is a concept that needs to be embraced by all stakeholders concerned with the voyage, such as shippers, receivers, port authorities and terminal operators, in order to be successful. Parties need to be satisfied that the necessary infrastructure is in place before agreeing to incorporate this clause into their voyage charter parties.
The Clause provides for any extra time used in the voyage as a result of the charterers’ request to adjust the arrival time to be compensated to the owners at an agreed percentage of the charter party demurrage rate. The parties must agree the extra time used and if they cannot agree then the Clause provides for the use of expert determination to reach a binding agreement.
Source: BIMCO