As a result of a rising number of shipments of industrial raw materials such as bauxite, coal and iron ore being transported under COAs, BIMCO is working on a new standard form of contract of affreightment (COA).
The current lack of a widely used standard form of COA often results in protracted and time consuming contractual negotiations. Some parties adapt voyage charter party forms for this purpose, but if care is not taken, this can result in unexpected outcomes such as the whole COA being terminated when the intention was simply to cancel just a single shipment.
With the aim to assist the industry with a clearly written template agreement, BIMCO is developing a new standard form.
GENCOA’s voyage terms will mirror those currently under development for the new edition of GENCON which is due to be published next year.
“Our aim is to create a simple and clearly worded commercial contract of affreightment for the dry bulk trades which reflects commercial practice,” says Inga Froysa of Torvald Klaveness who chairs the drafting group, adding:
“We have started work on a new edition of GENCOA focusing on the core provisions of a COA – scheduling, nomination and force majeure - and aim to complete the project in 2020.”
BIMCO has assembled a small team of industry experts to write the new edition of GENCOA. The team includes representatives from COSCO and Bunge, while broker input comes from Clarksons, P&I advice from Steamship Mutual and legal support from London law firm MFB.