BIMCO to launch new sanctions clauses to increase contractual certainty

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.

 

Nina Stuhrmann
in Copenhagen, DK

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