S&P sector shows strong appetite for new BIMCO ship sale agreement

Published: 11 March 2021

In a clear sign of industry support for BIMCO’s initiative to develop a new ship sale and purchase agreement, the organisation has received over 800 individual comments on its consultation draft, which will shape the final version of the agreement.

“We have had an amazing amount of constructive feedback on the consultation draft we sent out in January. We believe this shows a strong appetite for a modern and solidly worded alternative to existing ship sale agreements,” says BIMCO’s Deputy Secretary General Soren Larsen.

The 800 comments were gathered by consulting with BIMCO members, ship brokers, industry associations and law firms.

“The level and detail of comments we received shows real engagement by the industry. We now have a clear guide to what people want included in a proforma sale form agreement. There is a lot of work to do to process all the comments, but we are confident that we are absolutely on the right track,” he says.

BIMCO is increasingly using large-scale consultations with the industry to find out what issues future users would like to see addressed in their contracts. In the ship sale agreement, some potential users requested a “force majeure” clause to help address pandemic related issues. Other indicated that they would not welcome a clause addressing recycling and the future trading of the ship. All this feedback helps the drafting subcommittee shape the final agreement so that it meets market needs and expectations.

“BIMCO is really grateful to everyone who took the time to read the draft BIMCO Ship Sale Agreement and put down their comments and views in writing. It has provided invaluable help. We will continue processing the comments and refining the draft so that it is ready to be presented for adoption in May,” Larsen says.

The BIMCO Documentary Committee is the body that approves all BIMCO contracts and clauses developed by the subcommittees. The committee generally gather twice a year in a large meeting that includes delegates from around 30 shipowners and further includes industry experts from the P&I Clubs, other industry associations and law firms. In total, more than 80 people discuss and adopt the BIMCO contracts and clauses at the meetings. The next meeting is schedule for 17-18 May 2021.

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