Background
BIMCO is widely recognised as the shipping industry’s leading developer of standard contracts and clauses. BIMCO’s documentary work is based on well-established and thorough processes and is one of the organisation’s core activities.
More than 350 standard BIMCO contracts and clauses have been published over the years. Many BIMCO contracts have become standards in the industry including the GENCON voyage charter party, the BARECON bareboat charter party, the SUPPLYTIME offshore support vessel time charter party, the SHIPMAN third party ship management agreement, and the GUARDCON agreement for the hire of private maritime security guards. The standard contracts are supplemented by a large number of freestanding clauses. Many of these clauses are widely accepted and recognised as industry standards such as the War Risks Clauses. An increasing number of clauses is being developed in response to changes in the regulatory framework applicable to the shipping industry on topical issues such as emissions reductions, sanctions and piracy.
The scope of BIMCO’s documentary work is diverse and encompasses all aspects of the operational lifecycle of a ship from newbuilding, trading and bunkering, through to sale and purchase, financing, and recycling. There are standards covering all segments of the industry. Currently the top priority areas are decarbonisation, low-carbon fuels and offshore renewable energy.
The Documentary Committee (DC) plays a vital role as the approval body ensuring that BIMCO’s documentary work is legally sound, commercially practical, clearly written and representing a fair allocation of rights and obligations. The DC is a competent and unique body comprising more than 90 members with commercial, legal, insurance and brokering industry expertise, reflecting BIMCO’s global membership. All projects are developed by subcommittees composed of BIMCO members and, if need be, other relevant stakeholders from the industry.
BIMCO is, from time to time, asked by other organisations to review and approve their standard forms. When approving such third-party forms, the DC exercises an important role in supporting and raising the contractual standards for the industry.
BIMCO’s position statement
- As the world leader in the development of contracts and clauses for the maritime industry, BIMCO has a unique opportunity to promote uniform standards. This opportunity comes with a responsibility to cater for the industry as a whole.
- BIMCO believes that contractual standards should be balanced regardless of market conditions, practical and clearly written aimed at reducing negotiation time and the risk of disputes.
- While BIMCO believes that standard contracts and clauses applicable to all industry segments and corporate structures is preferable, it may in some cases be more appropriate to provide certain clause options depending on commercial practices or to cater for individual industry segments.
- BIMCO considers it vital to explore digital solutions fostering efficiency and collaboration between contractual parties in its documentary work.
- When developing or revising contracts and clauses, BIMCO will draw on the commercial, legal, technical, regulatory and insurance expertise among its global membership.
- By engaging closely with the industry, shipping organisations and regulators, and by sharing knowledge widely, BIMCO will further strengthen its leading position in delivering standard contracts and clauses to the maritime industry.