New BARECON 2017 calculates future trends

Overview

BIMCO has published a new edition of BARECON, the industry’s go-to standard contract for bareboat chartering.
The new leaner version of the contract, introduces a formula for calculating a fair share of costs for any compulsory structural changes or new equipment that may be implemented during the charter period.

BIMCO started revising the contract in April 2016, responding to, and to reflect changes in commercial practice and legal developments since BARECON was last updated in 2001.

Following the “Ocean Victory” judgment earlier this year, BIMCO has also clarified the wording of the insurance clauses in relation to an insurer’s right to claim against third parties. BARECON 2017 keeps pace with modern bareboat chartering practice and will be useful for all those involved in specialised long term bareboat chartering agreements.

BARECON 2017 is arguably one of the most widely used BIMCO documents in the industry. This is a significant revision which will help make it an even more usable and well-balanced document. The new revised document should serve the industry successfully for the next 10-15 years said Captain Ajay Hazari of Anglo Eastern Ship Management, Hong Kong, who chaired the BARECON 2017 revision drafting team.

Other new features of BARECON 2017 include an option for charterers to extend the charter period; tighter notice requirements on delivery and redelivery; and it gives charterers the right to place staff on board for familiarisation, prior to delivery.

BARECON 2017 builds on the success of previous editions of this industry standard contract. It introduces features that are highly relevant to modern bareboat chartering practice, such as a fair way of sharing the cost of mandatory new equipment. The new edition can easily be tailored to suit the needs of individual users. We hope it will continue to be the first choice of contract for anyone looking to bareboat charter a ship said Grant Hunter, Head of Contracts and Clauses at BIMCO.

The BARECON 2017 charter party is available now on BIMCO’s IDEA contract editing system. Explanatory notes and free sample copies can be found on BIMCO’s website at www.bimco.org.

Other members of the BARECON revision drafting team were Robert Almström, Stena RoRo, Sweden; Karl Even Rygh, NORDISK Defence Club, Norway; Stephan Bade, Leonhardt & Blumberg, Germany; and Adrian Moylan, Gard P&I Club, Norway.

Rasmus Nord Jorgensen
in Copenhagen, DK

Coronavirus

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

Read more

 

Latest Related News

View All News
 

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.