War Risks Clause for Time Chartering 2025 (CONWARTIME 2025)

 

BIMCO War Risks Clause for Time Chartering 2025 (CONWARTIME 2025)

(a) For the purpose of this Clause, the words:  

     (i) “Area” means any port, place, area or zone, waterway or canal; 

     (ii) “Insurance Costs” means:

            (1) any additional war risks premiums; and/or

            (2) costs of any (additional) kidnap and ransom insurances  

 in connection with War Risks for the Vessel to proceed to, through or remain in an Area exposed to War Risks; 

(iii) “Owners” shall include the registered owners, bareboat charterers, disponent owners, managers or other operators who are charged with the management of the Vessel;    

(iv) “War Risks” shall include any actual, threatened or reported: 

War; act of war; civil war; hostilities; revolution; rebellion; civil commotion; warlike operations; laying of mines; acts of piracy; violent robbery; capture; seizure; acts of terrorists; acts of hostility; malicious damage and/or blockades (whether imposed against all vessels or imposed selectively against vessels of certain flags or ownership, or against certain cargoes or crews or otherwise) by any person, organisation, terrorist or political group and/or the government of any state or territory whether recognised or not, which, in the reasonable judgement of the Master or the Owners, may be dangerous or may become dangerous to the Vessel, cargo, crew or other persons on board the Vessel. 

(b) The Vessel shall not be obliged or required to proceed to or through, and shall have liberty to leave an Area where it appears that the Vessel, cargo, crew or other persons on board the Vessel, in the reasonable judgement of the Master or the Owners, may be exposed to War Risks, whether such risk existed at the time of entering into this Charter Party or occurred thereafter.  

(c) The Vessel shall not be obliged or required to load contraband cargo or to proceed to or through, and shall have liberty to leave, an Area where, in the reasonable judgement of the Master or the Owners, the Vessel or the cargo may be subject to search or confiscation by a belligerent. 

(d) If the Vessel proceeds to or through or remains in an Area exposed to War Risks, the Charterers shall reimburse Insurance Costs to the Owners. If requested, the Owners shall demonstrate that they have used reasonable endeavours to obtain appropriate cover and terms (including premium). 

The Owners shall notify the Charterers of Insurance Costs as soon as practicable and, if possible, before the Vessel enters an Area exposed to War Risks.  

The Charterers shall only be obliged to reimburse Insurance Costs actually incurred by the Owners net of any applicable discount or benefit received for that voyage (such as any no claims bonus). Reimbursement by the Charterers shall be made within fifteen (15) days of receipt of the Owners’ invoices and supporting documents.  

(e) If the Owners become liable under the terms of employment to pay to the crew any bonus and/ or additional wages due to the Vessel being exposed to War Risks, then the bonus and/or additional wages actually paid to the crew shall be reimbursed to the Owners by the Charterers within fifteen (15) days of receipt of the Owners’ invoice together with signed receipt by the crew members or written confirmation from the crew managers of such payment .  

(f) The Vessel shall have liberty: 

(i) to comply with all orders, directions, recommendations or advice  whatsoever, including but not limited to those concerning departure, arrival, routes, sailing in convoy, ports of call, stoppages, destinations, discharge of cargo or delivery, which are given by the government of the nation under whose flag the Vessel sails or other government to whose laws the Owners are subject or any other government of any state or territory whether recognised or not, organisation or group whatsoever acting with the power to compel compliance with their orders or directions; 

(ii) to comply with the requirements of insurers under the terms of the Vessel’s insurance(s); 

(iii) to comply with the terms of any resolution of the Security Council of the United Nations, the effective orders of any other supranational body which has the right to issue and give them and with national laws aimed at enforcing those to which the Owners are subject and to obey the orders and directions of those who are charged with their enforcement; 

(iv) to discharge at any alternative port any cargo or part thereof which may expose the Vessel to liability for carrying contraband cargo; 

(v) to call at any alternative port to change the crew or any part thereof or other persons on board the Vessel when there is reason to believe that they may be subject to internment, imprisonment, detention or similar measures; 

(vi) to sail in convoy in or through an Area exposed to War Risks.  

Without prejudice to any off-hire provisions in this Charter Party, the Vessel shall remain on hire in all the events specified under subclause (f). 

(g) If, in accordance with their rights under the foregoing provisions of this Clause, the Owners refuse to proceed to the loading or discharging ports, or any one or more of them, they shall immediately inform the Charterers. No cargo shall be discharged at any alternative port without first giving the Charterers notice of the Owners’ intention to do so and requesting them to nominate a safe port for such discharge. Failing such nomination by the Charterers within seventy-two (72) hours of the receipt of such notice and request, the Owners may discharge the cargo at any safe port of their own choice. All costs, risk and expenses for the alternative discharge shall be for the Charterers’ account. 

(h) The Charterers shall indemnify the Owners for claims arising out of the Vessel proceeding in accordance with any of the provisions of this Clause which are made under any bills of lading, waybills or other documents evidencing contracts of carriage.  

(i) Anything done or not done in accordance with any of the provisions of this Clause, shall not be deemed a deviation, but shall be considered as due fulfilment of this Charter Party and any contracts of carriage. 

Explanatory Notes

The BIMCO War Risks Clause for Time Charter Parties (CONWARTIME) and War Risks Clause for Voyage Charter Parties (VOYWAR) Clauses were last revised in 2013. However, as a result of geopolitical developments, changes in trading practices and increased demand for transparency in relation to additional premiums and payment of crew bonuses, a review has been undertaken to determine the basis and extent of changes required to ensure that the provisions remain in line with commercial needs. As a result, the clauses have been updated and will be incorporated into all new and revised BIMCO charter parties and other documents. 

BIMCO recommends that members using standard charter parties or other contracts with the existing 2013 edition (or earlier) of the War Risks Clause for Time Charter Parties (CONWARTIME) and War Risks Clause for Voyage Charter Parties (VOYWAR) Clauses replace these versions with the new 2025 edition. 

The BIMCO War Cancellation Clause 2004 was reviewed by the drafting team, but it was decided that the clause is still fit for the current industry practices.  

Drafting Team 

CONWARTIME 2025 is the result of a collaborative and consensual process between owners, charterers, P&I clubs, defence clubs, insurance and legal experts. BIMCO is grateful to the drafting team for their considerable time, effort and commitment in producing the revised agreement:

Michiel Starmans, Spliethoff Group (Chairperson)
Francis Sarre, CMB
Henning Babiel, ADM
Dorte Nielsen, Centurion Bulk
Richard Young, Beazley/Clearwater Dynamics
William Gidman, HFW
Nicola Cox, West P&I Club
Neil Roberts, Joint War Committee
Vicki Tarbet, Nordisk Defence Club

BIMCO representatives: 

Carl Wilhelm Lindahl 
Zehra Göknaz Engin

As part of the development work, the drafting committee consulted a large group of stakeholders. BIMCO would like to thank them all for their support and valuable input to the process. 

CONWARTIME 2025 War Risks Clause for Time Charter Parties 

A significant change arose and the clauses were revised in 2013 based on the case of the “Triton Lark”1 and the construction of CONWARTIME in relation to measuring the risk of attack by pirates. The court placed considerable emphasis on the meaning of “may be” and “are likely to be” for determining the existence of the risk of attack by pirates and when owners have the right to refuse to proceed. In order to remove potential uncertainty, the test for determining whether to proceed has been amended and is now based on whether an area is dangerous. The level of danger is likely to be high, but a stated reference point removes the need for complex analysis of degree of risk and whether or not it is more or less likely to occur. Subclauses (a) and (b) was amended in 2013 revision to reflect the position taken in the “Triton Lark”. This position has been maintained in the 2025 revision.   

The opportunity was also taken during 2013 revision process to clarify the mechanism triggering the clause. It had been understood that CONWARTIME took effect if the identified war risks arose after a charter party had been concluded and had not, therefore, been contemplated by the parties. This contrasts with the Piracy Clause for Time Charters (and the parallel provision for Consecutive Voyage Charter Parties and COAs) which expressly applies whether or not the war risk in question was known at the time of fixing. However, it was held in the recent case of the “Paiwan Wisdom”2 that CONWARTIME did not contain a requirement that a war risk must have escalated since the date of the charter party. 

In order to avoid any doubt about the position and remove the inconsistency with the Piracy Clause (given that CONWARTIME also covers piracy risks), an amendment to subclause (b) now provides that the Clause applies “whether such [war] risk existed at the time of entering into this charter party or occurred thereafter”. This position has also been maintained in the 2025 revision.   

The opportunity has also been taken to streamline the content and layout. A number of words and phrases have therefore been updated so as to improve or clarify the text. 

1 Pacific Basin Ihx Ltd v Bulkhandling Handymax AS (The Triton Lark) (2012) 
2 Taokas Navigation SA v Komrowski Bulk Shipping KG (GMBH & Co) (The Paiwan Wisdom)(2012) 

Subclause (a) – The term “Area” has been added as a new definition for clarity in subclause (a)(i). Previously part of subclause (b), this change is not intended to alter the interpretation of the definition.  

Subclause (a)(ii) – “Insurance Costs” has been defined under subclause (a)(ii) to make the clause easier to read and to clarify what would fall under “Insurance Costs”. The subclause was structured in such a way that “the additional war risks premiums” and/or “cost of any (additional) kidnap and ransom insurances” in connection with War Risks for the vessel to proceed to, through or remain in an Area was clearly divided to list the relevant insurances and clarify which insurances are included in the definition.  

The word “additional” before “kidnap and ransom insurance” is intended to clarify that only kidnap and ransom insurance obtained for a particular voyage, in addition to the standard war risk insurance is to be considered included under “Insurance Costs”. It was also specifically mentioned in the clause that these premiums and/or insurances are in connection with the vessel proceeding to, through or remain in an Area to cover the scenarios where it may become stuck in such a location.  

Subclause (a)(iii) – The term “shipowners” has been amended to read “registered owners” to provide clarity under “Owners” definition.  

It was decided to remove “the Master; and” from the definition of “Owners” to prevent any confusion regarding the Master’s responsibility for payments or reimbursements.  

Subclause (a)(iv) - The definition of “War Risks” has been streamlined for clarity and consistency. Additionally, the term “body” was deemed inappropriate in this context and has been replaced with “organisation”.  

Definition of “Piracy” has been removed from “War Risks” definition as the term is already included in the clause by including the events defined as piracy and the term “Piracy” has not been used in any other subclauses, therefore it was removed.   

Subclause (b) – The wording “proceed to” moved after “required to” to avoid repetition in the wording.  

The locations listed as Area under this subclause have been removed as Area is now defined under subclause (a)(i) with the same list of locations.  

The wording “and shall have liberty to leave” has been added in the subclause as the first sentence already implies that the vessel is not obliged to proceed to or through areas with war risks. Therefore, the same standard should apply for leaving an area to avoid a double standard. And the last sentence has been removed accordingly. 

Subclause (c) – A new wording “obliged" in addition to "required" has been added in subclause (c) to align it with subclause (b). 

The words “or to pass through any blockade as set out in Subclause (a)” were deleted as this wording is already covered under the “War Risks” definition.  

The wording “or through, and shall have liberty to leave” has been added in the subclause to provide consistency throughout the clause.  

The term "Area" is now used as the defined term "Area." It was important to retain this definition in the subclause, as the owner may still refuse to load contraband cargo outside the defined “Area” due to the presence of “or” after “contraband cargo.” This accounts for situations where cargo loaded outside the “Area” could become contraband due to its destination being a port within a war risks area. 

For the sake of clarity, it has been also found relevant to clarify in these notes that “belligerent” refers to an individual, group, country, or other entity acting in a hostile manner, such as engaging in combat. 

For consistency, the wording “in the reasonable judgment of the Master or the Owners" in the “War Risks” definition and subclause (b) has been replicated in subclause (c).  

Subclause (d) - This subclause has been restructured and divided into three subclauses to provide clarity. 

It was decided to add “or remains in” to provide consistency throughout the clause. 

Defined term “Insurance Costs” has been added to subclause (d) and “any additional premiums required by the Owners' insurers and the costs of any additional insurances” wording has been removed from the subclause as it is covered by the defined “Insurance Costs” term.  

“If requested” wording was decided to be added in this subclause as the insurance documents are not provided on each occasion and generally provided upon the charterers’ request. And the following wording “the Owners shall demonstrate that they have used reasonable endeavours to obtain appropriate cover and terms (including premium)” has been added to the subclause to give charterers the possibility to ask for proof of the owners’ reasonable efforts to obtain reasonable cover and terms and to challenge any excessive premium claimed by the owners. The objective being to enhance transparency.   

Second paragraph of subclause (d) aims to clarify that charterers are only responsible for reimbursing the owners for insurance costs incurred net of any applicable discounts or benefits. It was also decided to add “for that voyage” under the same paragraph since, even if the “no claims bonus” only being obtainable at the end of a calendar year, in accordance with the industry practice, in most cases, the owners are able to quantify and document the “no claims bonus” for a particular voyage.  

Last paragraph of subclause (d) has been added to enhance transparency between the parties regarding Insurance Costs. It was also decided to add “exposed to War Risks” after “an Area” to make it clear that it is an area exposed to War Risks and not just any area. 

It is important to note that despite charterers paying the additional insurance they are not protected against a claim from the owners (or their insurer) if there is a breach of the charter party. The parties are free to alter this position by way of altering the clause or for the charterers to be listed as co-assured.  

Subclause (e) - This subclause now clearly stipulates that reimbursement shall be made for bonus and/or additional wages actually paid to the crew. The time of reimbursement was changed to 15 days to match the timing for reimbursing Insurance Costs under subclause (d). 

It was decided to add the wording to “signed receipt by the crew members or written confirmation from the crew managers of such payment”, as it was considered the best and practical solution since it does not require crew members to share sensitive information such as their bank account details but only signed receipts or a written confirmation from the crew managers. Furthermore, if bonus is paid in cash, it is only possible to have receipt of such payment. Additionally, crew manager’s confirmation could also be used as evidence of receipt by the crew.  

Subclause (f) – Subclause (f)(i) wording was amended and “whatsoever, including but not limited to those concerning” included in the first sentence to replace “or in any other way whatsoever” for enhanced clarity. Additionally, the term “body” was deemed inappropriate in this context and has been replaced with “organisation”.   

Subclause (f)(ii) has been amended and “the Owners’” has been removed from this subclause to refer to “insurers” instead of “the Owners’ insurers” as it is typically the vessel’s insurers who have control over and access to the documents.

Subclause (f)(iii) has amended to remove the capitalised “supranational” as it is not a defined term within the clause.

Subclause (f)(iv) wording “being held liable” has been amended to read “liability” to modernise the language and the wording “as a contraband carrier” was amended to “for carrying contraband cargo” for clarity and it now mirrors subclause (c).

Subclause (f)(vi) has been added to clarify that the vessel can sail in convoy.  

And the last sentence of this subclause intends to clarify that the vessel will remain on hire in all the events specified under this subclause, without prejudice to any off-hire provisions in the charter party where the clause is incorporated.  

Subclause (g) has amended to extend the period for nomination period to 72 hours, providing the charterer with additional time to issue alternative orders.  

Subclause (h) – The wording “Sub-clauses (b) to (h)” has been amended to “this Clause” to include the definitions under the scope of application. 

Subclause (i) – It was decided to restructure the subclause by shifting “Anything done or not done” to the beginning of the sentence and to add the “and any contracts of carriage” at the end of the sentence to cater for bills of lading and other similar documents.