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GENCON 2022
The latest edition of GENCON, GENCON 2022, is here. On this page, you can find links to all BIMCO's information and advice about the new form and watch members of the drafting team talk about some of the key clauses and concepts. Our drafting team has given GENCON 1994 a massive overhaul and the result is an extensive form which covers most of the typical areas that users often seek to include additional clauses for. By using GENCON 2022, you will be using a solid commercial and legal basis for your negotiation.
Watch a recording of the webinar held on 27 October with Helena Biggs and John Weale
Why has GENCON been updated?
The world is fast evolving and, although conservative, the shipping industry is no exception. GENCON was last revised in 1994 and since then ships have changed, a lot of new regulations have come into play and commercial practices have changed. Additionally, several high-profile court cases have come out which have changed the previous common understanding of certain concepts – examples being the concept of seaworthiness in the CMA CGM LIBRA (Alize 1954 and another v Allianz Elementar Versicherungs AG and others [2021] UKSC 51) and the owners’ obligation to set out in time in the PACIFIC VOYAGER (CSSA Chartering and Shipping Services SA -v- Mitsui OSK Lines [2018] EWCA Civ 2413). GENCON 2022 reflects modern practice and the current regulatory requirements.
What are the significant differences between GENCON 1994 and GENCON 2022?
GENCON 2022 is much more comprehensive than its predecessor and as such needs less additionally clauses attached to it. It covers a great majority of the standard clauses that parties would expect to see included in a modern charter party.
In addition to this, GENCON 2022 includes a new clause covering all aspects related to the cargo itself (Clause 3 – Cargo). The clause covers regulatory requirements and sets out the obligations of the parties.
One of the well-known clauses from previous iterations of GENCON, the Owners’ Responsibility Clause (Clause 2), has been overhauled. The former clause provided very broad protection to the owners for loss, damage or delay to the cargo, but was strictly limited to carriage of goods. So, for example, it provided no protection to the owners in respect of an accident occurring on the approach voyage to the loading port. On top of this, it was often watered down by the inclusion of a Clause Paramount.
Hear about the key updated clauses from members of the drafting subcommittee.
What is GENCON 2022?
GENCON is BIMCO’s most widely known, and used, voyage charter party. It is a plain “vanilla” charter used for dry and general cargo. It is known for its brevity and simplicity which means that it has been easily adaptable for many different trades. Initially, the plan was to keep GENCON 2022 short and concise as well. However, as work progressed it became clear that this would not be helpful to the industry as much has changed since 1994 when GENCON was last revised – especially in terms of the environment and safety. When people today use GENCON 1994, it often ends up as a long contract in any event due to the large amount of rider clauses that get added. GENCON 2022 is therefore a full and comprehensive contract.
Who uses GENCON 2022?
Anyone doing spot fixtures in the dry cargo market will be familiar with GENCON 1994. It is also a charter party that will be familiar to people doing general cargo such as steel coils and timber trade.
What impact do these changes have to users?
Users of GENCON 2022 will find that the new GENCON is a “ready to pick up and be used” charter which does not require numerous amendments and rider clauses to work. It should provide users with a clear division of responsibilities and thus certainty of the outcome.
How can I access GENCON 2022?
GENCON 2022 is ready to be used today on SmartCon and SmartCon Online. Reach out to smartcon@bimco.org for more information!
You can find a sample copy of the charter party here.
Where can I find the explanatory notes for GENCON 2022?
Explanatory Notes can be accessed by BIMCO members here.
