BIMCO amends the War Risk clause
The Document Committee of the Baltic International Chamber of Shipping (BIMCO) has approved amendments to its war risk clause to reflect the changing geopolitical challenges facing the shipping industry.
The Documentation Committee reviewed the existing BIMCO War Risk Clause and agreed to an updated version, the BIMCO Voyage Charter Party War Risk Clause 2025 and the BIMCO Time Charter Party War Risk Clause 2025.
An amendment to BIMCO's 2004 War Cancellation clause was also considered, but the Subcommittee found that the clause was fit for purpose.
Prior to the meeting of the Committee on Documents, the Subcommittee responsible for the amendments also discussed war risk aspects and explored issues such as premium payment liability and transparency of premium payments by charterers to shipowners. The premium is an additional premium to be paid for entry into areas listed in the Joint Maritime Convention (JWC), such as the Lei 'a Sea, where the Houthis have repeatedly attacked commercial vessels. The purpose of the amendment is to ensure that the additional premium charged to shipowners is clear and balanced.
In addition, the Subcommittee has introduced a new method of calculating additional freight charges as provided for in the war risk clause of the voyage charter Party. The aim is to improve its commercial viability and make the calculation applicable not only to situations where a change of route is required due to unsafe loading or unloading ports, but also to situations where a change of route is required due to unsafe navigation.
Stinne Taiger Ivø, Deputy Secretary General of BIMCO, said: "In revising the war risk clause, our focus is on addressing the ongoing challenges and threats to the way the industry operates. However, we also seek to minimize changes to these terms as they are widely used and recognized in the industry."
The Documentation Committee reviewed the existing BIMCO War Risk Clause and agreed to an updated version, the BIMCO Voyage Charter Party War Risk Clause 2025 and the BIMCO Time Charter Party War Risk Clause 2025.
An amendment to BIMCO's 2004 War Cancellation clause was also considered, but the Subcommittee found that the clause was fit for purpose.
Prior to the meeting of the Committee on Documents, the Subcommittee responsible for the amendments also discussed war risk aspects and explored issues such as premium payment liability and transparency of premium payments by charterers to shipowners. The premium is an additional premium to be paid for entry into areas listed in the Joint Maritime Convention (JWC), such as the Lei 'a Sea, where the Houthis have repeatedly attacked commercial vessels. The purpose of the amendment is to ensure that the additional premium charged to shipowners is clear and balanced.
In addition, the Subcommittee has introduced a new method of calculating additional freight charges as provided for in the war risk clause of the voyage charter Party. The aim is to improve its commercial viability and make the calculation applicable not only to situations where a change of route is required due to unsafe loading or unloading ports, but also to situations where a change of route is required due to unsafe navigation.
Stinne Taiger Ivø, Deputy Secretary General of BIMCO, said: "In revising the war risk clause, our focus is on addressing the ongoing challenges and threats to the way the industry operates. However, we also seek to minimize changes to these terms as they are widely used and recognized in the industry."
