Van AalstTelestackPort of South LouisianaPort of StocktonViganBühler GmbH
  • Cimbria
  • Van Aalst
  • Geneva Dry
  • Sailors Society
  • Bühler GmbH
  • TMS Awards 2023

BIMCO publishes new sanctions clauses

(Posted on 23/12/19)

BIMCO’s Documentary Committee has approved two charter party sanctions clauses to help owners and charterers manage due diligence policies and navigate an increasingly complex environment of economic and trade sanctions imposed by governments.

Sanctions have become a widely used geopolitical tool by governments. The rules are complex, imprecisely drafted, often changing, and the risks of violation can be high. The necessity of sanctions clauses that provide contractual certainty has prompted BIMCO to revise, combine and replace the existing BIMCO

The clauses are intended for use in all trades, except for the container trades which require more specialised provisions, and BIMCO is currently developing a separate sanctions clause for container operators which will be released early next year.

Both clauses - one for time charters and one for voyage charters - have been written by representatives from shipowners, charterers, P&I clubs and lawyers specialized in sanctions and are available to download from BIMCO’s website (www.bimco.org) along with explanatory notes for time charter and voyage charter parties.

The aim of the clauses is to help owners and charterers navigate sanctions risks and would ideally form part of a company’s due diligence policy to manage those risks.

The benefit of using the clauses is twofold; They provide the ability to terminate the contract and to claim damages in limited circumstances when the counterparty and/or the third parties listed in the warranties are sanctioned.

BIMCO has chosen termination as the appropriate right in this context because that is often a breach which is incapable of being remedied. That changes however, when the performance of the charter party involves a sanctioned activity or third party. A right to change voyage orders and/or suspend performance is a more appropriate remedy when the performance involves a sanctioned activity or person.

Alan Mackinnon, Chief Claims Officer, UK P&I Club and chairman of the sanctions subcommittee says: “The new BIMCO sanctions clauses are the product of many, many hours of careful thought and deliberation. It’s not possible to cover every possible sanction-related scenario in a charter party clause without being overly prescriptive, but we believe these clauses will strike the right balance for most people.”

Latest News

Accidents on ships under scrutiny as InterManager submits statistics to IMO

(Posted on 16/07/24)

Accidents onboard ships are not decreasing, according to latest accident statistics submitted to the... Read more


Solutions required for FuelEU Maritime rules compliance, says Columbia

(Posted on 16/07/24)

Solutions must be in place to help ship owners with navigating the complex challenges of complying with... Read more


Boers committed to diversity with relocation of Filipino employees to Germany

(Posted on 16/07/24)

Diversity and nurturing talent is high on the agenda for BCS Group – Boers Crew Services as it... Read more


INTERCARGO joins industry calls for IMO to amend flaws in CII

(Posted on 12/07/24)

With discussions regarding the IMO’s (International Maritime Organization) Carbon Intensity Indicator... Read more


ICS Türkiye branch celebrates its inauguration in Istanbul

(Posted on 12/07/24)

The Institute of Chartered Shipbrokers (ICS), the professional body for the commercial shipping industry... Read more


Columbia Group and Crowley forge strategic US alliance

(Posted on 12/07/24)

Columbia Group and Crowley have signed a strategic cooperation agreement that broadens both companies... Read more


Inmarsat report advocates data sharing to address preventable incidents

(Posted on 04/07/24)

The 2024 edition of The Future of Maritime Safety Report from Inmarsat Maritime, a Viasat company, reveals... Read more


50 years of Hydrex

(Posted on 04/07/24)

On May 16th, 1974, Hydrex was officially born. In the 50 years since then the company has grown from... Read more


New Alternative Fuel Bunkering MOU

(Posted on 04/07/24)

Consort Bunkers Pte. Ltd., ClassNK, Yanmar Asia (Singapore) Corporation Pte Ltd, and Taiko Asia Pacific... Read more


INTERCARGO members achieving fewer deficiencies and detentions

(Posted on 28/06/24)

INTERCARGO-registered dry bulk ships continue to outperform the industry average in both deficiencies... Read more


CimbriaGeneva DrySailors SocietyTBA GroupTMS Awards 2023
  • TBA Group
  • Port of Stockton
  • Vigan

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping