BIMCO revises War Risks clauses for time and voyage charter parties

May 7, 2025

BIMCO has recently taken the opportunity to revise its most widely used War Risks clauses for time and voyage charter parties and an overview of the main changes compared with the 2013 clauses is set out below. Members will see that several of the provisions are now more “charterer friendly” compared with the 2013 clauses.

CONWARTIME 2025:

Whilst much of the 2013 clause has been kept “as is”, key changes introduced in the 2025 clauses include:

i) “Area” and “Insurance costs” (a): definitions of these concepts are now included the clause. Note that “Insurance Costs” are stated to cover the cost of both additional war risks and kidnap and ransom insurance that may be taken out by owners due to the vessel entering a War Risk “Area”.

ii) Where owners purchase additional insurance due to War Risks – the requirement for reasonableness and transparency (d): new obligations are introduced on owners to demonstrate that “they have used reasonable endeavours to obtain appropriate cover and terms (including premium)” when requesting reimbursement of additional insurance costs from charterers.

Owners are also to “notify the Charterers of Insurance Costs as soon as practicable and, if possible, before the Vessel enters an Area exposed to War Risks”.

The clause also makes it clear that charterers are only obliged pay “Insurance Costs” net of/after accounting for “any applicable discount or benefit received for that voyage (such as any no claims bonus)”.

iii) Crew bonus (e): the 2025 clause adds a requirement on owners to prove that the crew has received the bonus, by means of “Owners’ invoice together with signed receipt by the crew members or written confirmation from the crew managers of such payment”.

iv) Liberty clause (f): the use of “whatsoever” in the vessel’s liberty “to comply with all orders, directions, recommendations or advice whatsoever” has been clarified. This means that the clause encompasses a broad range of “instructions” given to the vessel, even if they are cannot be described as “orders, directions, recommendations or advice”.

The liberty clause adds that owners have liberty to sail in convoy through an “Area” that is exposed to War Risks.

The liberty clause expressly states that the vessel will remain on hire where events under (f) occur.

v) Where owners refuse to discharge the cargo at a port due to War Risks, (g): the time limit for charterers to nominate an alternative load port or discharge port (ie from the time when owners request charterers to nominate an alternative, safe port) is now extended from 48 hours to 72 hours.

VOYWAR 2025:

This clause follows CONWARTIME 2025 where applicable, for example, as regards definitions of “Area” and “Insurance Costs” and the requirement for reasonableness and transparency where owners purchase additional insurance due to War Risks – see i), ii) and iv) above.

In addition, the clause is amended in relation to:

i) Adjusted freight where an alternative route is taken due to War Risks (d): the major change is the introduction of an adjusted freight mechanism where owners elect an alternative route due to War Risks.

The 2013 clause contained a “rough and ready” mechanism whereby, if the total extra distance exceeds 100 miles, owners would be entitled to “additional freight which shall be the same percentage of the freight contracted for as the percentage which the extra distance represents to the distance of the normal and customary route”. VOYWAR 2025 replaces this with a more nuanced calculation of adjusted freight which is “based on the estimated time and/or expenses incurred or saved as a result of that alternative route, as documented by the Owners”.

The clause further provides that this adjusted freight – which the clause recognises may be increased or decreased – is to be paid or reimbursed within 7 calendar days of the later of (1) receipt of owners’ invoice with supporting documents and (2) the bills of lading being issued.

The clause also now provides that owners have a lien on the cargo for this adjusted freight.

West’s Head of Defence claims, Nicola Cox was one of the members of BIMCO’s working group which reviewed these clauses.