BIMCO to launch new sanctions clauses to increase contractual certainty
Overview
BIMCO is merging its sanctions and designated entities charter party clauses, following revisions by a specialist subcommittee, to create a more robust contractual solution for sanctioning.
The work on the new clauses for time and voyage charters is close to completion, and final drafts will be presented to BIMCO’s Documentary Committee for adoption on 5 December.
The new clause will replace the existing BIMCO sanctions clauses and will form an integral part of BIMCO’s suite of Sanction Clauses which will include clauses for contracts of affreightment, ships’ sale & purchase agreements and SHIPMAN.
“The subcommittee’s aim has been to draft clauses which are designed to reduce uncertainty and help avoid disputes. I am confident that we have achieved this goal by using an objective test on sanctioning,” says Alan Mackinnon, Chief Claims Officer, UK P&I Club and chairman of the sanctions subcommittee.
Two key features dealt with by the clauses are the effect of one of the parties becoming subject to sanctions, and the right of the “innocent/non-affected” party to terminate the charter party and/or claim damages; and the consequences of sanctions affecting the immediate voyage, depending if cargo has already been loaded or not.
BIMCO’s Documentary Committee has been closely engaged in the project and their feedback to the subcommittee formed a valuable part of the development process.
The drafting team comprises sanctions experts from Oldendorff Carriers and Cargill; the UK P&I Club, the Swedish Club, the North and the International Group secretariat and legal advisors from Crowell & Moring.
Feedback or a question about this information?
Posted:
16 October 2019
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.
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.
