Geopolitical shift prompts new sanctions clauses from BIMCO

Overview

BIMCO is updating its suite of sanctions clauses to reflect changes in the sanctions’ environment. The new clauses are expected to be launched at the end of 2019.

Sanctions have a significant impact on companies operating in international trade. Having a poorly worded sanctions clause in a contract could cause a number of problems.

Such problems could include not being contractually able to terminate a contract with a sanctioned entity, despite the fact that the performance of the contract is prohibited under certain laws, as well as banks refusing to proceed transactions combined with a potential claim for damages.

BIMCO’s clauses will be designed to address these issues.

“This is an important task. We need to ensure that sanctions clauses continue to meet the changing political environment given the significant consequences of sanctions violations,” says Alan Mackinnon, Chairman of BIMCO’s Sanctions Clause Subcommittee and Chief Claims Officer, Thomas Miller.

BIMCO is therefore revising its Sanctions Clause for Time Charter Parties and developing a new voyage charter party version. Both clauses will integrate the Designated Entities Clause.

In addition, the “new” sanctions clauses will be more user-friendly as they will provide a one all-encompassing solution for each type of contract.

Nina Stuhrmann
in Copenhagen, DK

Coronavirus

Access BIMCO's COVID-19 related articles and advice.

Read more

 
 

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.

More about cargo

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.