Hire and termination clauses reviewed in BARECON update
Overview
BARECON 2001 is being updated to reflect changes in commercial practice and legal development in the 15 years since it was published. At a meeting held at BIMCO House on 29 September the focus of the revision team was the hire and termination provisions.
BARECON 2001 is being updated to reflect changes in commercial practice and legal development in the 15 years since it was published. At a meeting held at BIMCO House on 29 September the focus of the revision team was the hire and termination provisions.
The updated draft now contains a NYPE 2015-style grace period clause permitting the charterers three days grace to meet their hire payment obligations before the owners are entitled to terminate the charter party. The revised termination clause spells out more clearly the consequences of termination. For example, if the owner terminates due to the charterer’s failure to pay hire, the owner will be entitled to damages for the loss of the remainder of the charter period. Similarly, if the charterer terminates because of the owner’s breach, the charterer will be able to claim damages. This could become relevant if the market charter rate had gone up and the charterer is faced with fixing repelacement tonnage at a higher rate.
The drafting team has also modernised and clarified the wording of the lien, indemnity and wreck removal clauses. New clauses include provisions for anti-corruption and sanctions.
Commercial, legal and insurance experts with firsthand experience of BARECON are involved in the project. The companies involved are Stena RoRo; Leonhardt & Blumberg; Anglo-Eastern Shipmanagement; Nordisk; Gard P&I; and Lax & Co LLP. The subcommittee is chaired by Ajay Hazari of Anglo Eastern.
A first draft will be presented to the Documentary Committee on 17 November 2016. It is hoped that the document will be ready for adoption in the autumn of 2017, following industry consultation.
VIDEO: Ajay Hazari, Chairman of the BARECON Subcommittee, discusses the update oil this well used standard form.
Feedback or a question about this information?
Posted:
30 September 2016
VPS Bunker Alerts
Veritas Petroleum Services (VPS) publish regular Bunker Alerts based entirely on fuel samples and have kindly permitted BIMCO’s Members to access this information.
The Bunker Alerts are not intended to be an evaluation of overall bunker quality in the port or area concerned, but usually highlight a specific parameter within the fuel which has raised a quality issue.
Latest ice reports for members
Latest piracy reports
Latest industry releasable threats
Related publication
Offshore Heavylift and Project Cargo Contracts
The handy guide contains all of BIMCO’s current standard offshore contracts and charter parties along with detailed guidance notes.
Related training
Charter Party Workshop Online
- Online, Online
- 27 January, 2025
The Charter Party Workshop (Masterclass) Online is a series of 10 online sessions and combines a range of lecturers on voyage and time chartering with sessions ...
ELSEWHERE ON BIMCO
Contracts & Clauses
All of BIMCO's most widely used contracts and clauses as well as advice on managing charters and business partners.
Learn about your cargo
For general guidance and information on cargo-related queries.
BIMCO Publications
Want to buy or download a BIMCO publication? Use the link to get access to the ballast water management guide, the ship master’s security manual and many other publications.
About a new business partner
We can help members check new business partners. We also help to recover millions of USD (undisputed) funds every year.
