BIMCO Updates War Risk Clauses to Address Shipping Industry Challenges

The BIMCO Documentary Committee has recently approved revisions to its War Risk Clauses in response to the evolving geopolitical challenges faced by the shipping industry. The committee reviewed the existing clauses and agreed on updated versions, including the BIMCO War Risk Clause for Voyage Charter Parties 2025 (VOYWAR 2025) and the BIMCO War Risk Clause for Time Charter Parties 2025 (CONWARTIME 2025). While a revision of the War Cancellation Clause 2004 was considered, it was ultimately deemed suitable for current purposes.

Nicholas Fell, Chairperson of BIMCO’s Documentary Committee, emphasized the importance of regularly updating clauses to accurately reflect the dynamics of conflicts affecting the industry. The recent revisions aim to address current challenges, such as the war in Ukraine and attacks on shipping in the Red Sea. Additionally, the committee discussed war risk insurance aspects, including premium payment responsibilities and transparency for charterers and owners.

In an effort to enhance commercial viability and address safety concerns, the subcommittee introduced a new calculation method for additional freight in the War Risks Clause for Voyage Charter Parties. This adjustment aims to provide clarity and balance in additional premiums charged by shipowners, particularly in high-risk areas like the Red Sea. Stinne Taiger Ivø, Deputy Secretary General at BIMCO, highlighted the committee’s focus on addressing industry challenges while minimizing unnecessary changes to widely recognized clauses.

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