How does BIMCO help?
Before entering the high threat waters: Our work on contracts and clauses means we can help shipowners and charterers distribute the risks and understand their responsibilities when venturing into areas at high risk of piracy.
Key contracts include GUARDCON (an agreement for the hire of the services of private maritime security guards on ships, either armed or unarmed) and SEV-GUARDCON (covering the use of security escort vessels that accompany merchant ships in high threat areas).
BIMCO’s War Risks and Piracy Clauses provide contractual frameworks to help shipowners and charterers navigate the complexities of operating in high-threat areas. BIMCO’s Piracy Clauses, namely Piracy Clause for Time Charter Parties 2013, Piracy Clause for Single Voyage Charter Parties 2013 and Piracy Clause for Consecutive Voyage Charter Parties and COAs 2013 offer protections against the growing threat of piracy, covering issues such as special cover, seizure, additional costs, and ransom payments, ensuring commercial viability while prioritising crew safety and operational security. Meanwhile, The War Risks Clauses, namely War Risks Clause for Time Chartering 2013 (CONWARTIME 2013) and War Risks Clause for Voyage Chartering 2013 (VOYWAR 2013), outline the rights and obligations of parties in the event of war-related threats including piracy, ensuring ships can avoid dangerous areas while addressing liability, cost allocation, and termination rights.
These clauses are currently being updated to reflect evolving geopolitical risks and industry needs.
Our wider role in the industry: Piracy is a major threat to shipping in some regions, and we maintain dialogue with a wide range of stakeholders, such as governments, military, judiciary, law enforcement and commercial security providers, to stay up-to-date on risk levels in different areas. We also play a key role in developing guidelines for risk management through the IMO and in industry groups. Our experts provide maritime security threat overviews and training courses so our members are up to date on the legal and contractual issues involved in piracy situations.
In the event of an incident: Should a ship be attacked by pirates, or crew taken hostage, our experts can offer advice and support to members. Depending on the circumstances, we also occasionally provide behind-the-scenes dialogue with authorities and other stakeholders to help find a peaceful resolution and facilitate the safety of the seafarers.