Explanatory Notes
BIMCO members have access to the supporting explanatory notes.
The Shipmanagers’ Letter of Undertaking (LoU) is a model letter for use in third party arrangements where shipmanagers maintain and operate the vessel but have no financial involvement or interest in its ownership.
The content of the LoU is based on provisions commonly found in market documentation but creates a more equitable starting point for discussions. The BIMCO LoU aims to eliminate the need for often protracted party negotiations where points argued in previous cases are frequently repeated, which can be time-consuming and adds to costs.
Copyright in Shipmanagers’ Letter of Undertaking is held by BIMCO.