Shipping Industry Braces for Higher Costs as BIMCO Revises War Risk Clauses
Nifemi Coker with Agency Reports
The Documentary Committee of Baltic and International Maritime Council (BIMCO) has approved revisions to its War Risk Clauses to reflect changes in the geopolitical challenges facing the international shipping industry.
The Chairperson, BIMCO Documentary Committee, Nicholas Fell, made the revelation recently. Fell said: “We consistently revise our clauses to ensure they are up to date for this global industry. The revisions to the War Risks Clauses are essential to accurately reflect the dynamics of conflicts today, not least the war in Ukraine and recent attacks on shipping in the Red Sea.”
The Documentary Committee reviewed the existing BIMCO War Risk Clauses and agreed on the updated versions; BIMCO War Risk Clause for Voyage Charter Parties 2025 (VOYWAR 2025) and the BIMCO War Risk Clause for Time Charter Parties 2025 (CONWARTIME 2025).
Also, the subcommittee working on the revisions ahead of the Documentary Committee has discussed war risk insurance aspects and addressed topics such as the responsibility for premium payment and transparency of the premium payable by charterers to vessel owners.
The premium payment is the additional premium payable for entering into JWC Listed Areas – Hull War, Piracy, Terrorism and Related Perils.
The subcommittee has introduced a new calculation method for additional freight addressed in the War Risks Clause for Voyage Charter Parties. The aim is to make the calculation suitable also for situations requiring re-routing due to unsafe passage and not only due to unsafe load or unsafe discharge ports.
The Secretary General at BIMCO, Stinne Taiger Ivø, said that in revising BIMCO’s War Risk Clauses, consideration has been given to adopt as few changes as possible to encourage smooth adaptability as the Clauses are widely used and recognized within the maritime industry.
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