The Documentary Committee of BIMCO has approved revisions to its War Risk Clauses to reflect changes in the geopolitical challenges facing the shipping industry.
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).
A revision of BIMCO’s War Cancellation Clause 2004 was also considered, but the subcommittee decided that the clause is fit for purpose.
“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,” stated Nicholas Fell, Chairperson of BIMCO’s Documentary Committee.
The subcommittee working on the revisions ahead of the Documentary Committee has also discussed war risk insurance aspects and addressed topics such as the responsibility for premium payment and transparency of the premium payable by charterers to the owners.
The premium payment is the additional premium payable for entering into a high-risk area such as the Red Sea due to the Houthis’ attacks on commercial ships in the area.
The subcommittee has also introduced a new calculation method for additional freight addressed in the War Risks Clause for Voyage Charter Parties. The subcommittee aims to improve its commercial viability and 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.
“In revising our War Risk Clauses, our focus has been on the constant challenges and threats to the way our industry operates. However, we have at the same time aimed to introduce as few changes to the clauses as possible, as they are widely used and recognised within the industry,” commented Stinne Taiger Ivø, Deputy Secretary General at BIMCO.
