The documentary committee of BIMCO has approved revisions to its war risk clauses for voyage and time charters to reflect changes in the geopolitical challenges facing the shipping industry.
The subcommittee working on the revisions ahead of the documentary committee discussed war risk insurance aspects and addressed topics such as the responsibility for premium payment and transparency of the premium payable by charterers to the owners. The premium payment is the additional premium payable for entering into a high-risk area such as the Rea Sea at times when the Houthis have targeted commercial ships in the area. The intention of the revision is to ensure clarity and balance in the additional premiums charged by shipowners.
Also, the subcommittee has introduced a new calculation method for additional freight addressed in the war risks clause for voyage charter parties. The aim is to improve its commercial viability and make the calculation suitable also for situations requiring re-routing due to unsafe passage and not only due to unsafe load or unsafe discharge ports.
“In revising our war risk clauses, our focus has been on the constant challenges and threats to the way our industry operates. However, we have at the same time aimed to introduce as few changes to the clauses as possible, as they are widely used and recognised within the industry,” said Stinne Taiger Ivø, deputy secretary-general at BIMCO.