BIMCO PUBLISHES
ISPS CLAUSE
In response to a growing demand from the industry for
a standard clause to address ISPS Code issues in a charter
party context, Danish based international shipping organisation
BIMCO has published a Standard ISPS Clause for Time Charter
Parties. BIMCO has focussed on producing a time charter
party clause as many owners and charterers are presently
concluding time charters with periods that will overrun
the 1 July 2004 latest implementation date for the ISPS
Code.
According to BIMCO’s Deputy Secretary General, Soren Larsen
“Among the measures imposed by the ISPS Code are requirements
which the ship owners can only meet with the co-operation
of the charterers, such as providing information about the
full style contact details of the charterers and any sub-charterers”.
Larsen added “Delays, costs and expenses may well be incurred
in connection with security measures taken by the local
port authority or other relevant authority according to
the ISPS Code; the burden of which must be borne by the
owners or the charterers or shared between them”. He went
on to say “It is the allocation of liability between the
owners and the charterers for these delays, costs and expenses
that the BIMCO ISPS Clause aims to address”.
The first part of the BIMCO ISPS Clause sets out the basic
requirement for the owners to comply with the relevant parts
of the ISPS Code as of 1 July 2004. The owners are also
required to provide the charterers with documentary evidence
of their compliance and give full style contact details
of the operating owners’ Company Security Officer. The second
part of the Clause addresses the charterers’ reciprocal
obligations to provide the owners with their full style
contact details and those of any sub-charterers.
BIMCO believes that the ISPS Clause offers a balanced solution
both for owners and charterers to fairly address the issues
of delays, costs and expenses arising out of or related
to security regulations or measures required to comply with
the ISPS Code.
Firstly, the Clause provides that all delays, costs or
expenses arising out of security measures taken by the port
facilities or other relevant authority in accordance with
the ISPS Code will be for the charterers’ account. This
requirement is irrespective of the security level imposed
in the particular port or area.
Secondly, the Clause addresses the owners’ liabilities
and makes it clear that the owners are accountable for all
measures taken to comply with the Ship Security Plan. For
example, where the owners are required under their Ship
Security Plan to use two guards at the gangway, even though
the port security regulations require only one guard, such
costs will be borne by the owners. The cost of preparing
and implementing a Ship Security Plan for Levels 1, 2 and
3 are for the owners’ account.
The Standard ISPS Clause was drafted by a group of commercial,
legal and insurance experts drawn from BIMCO’s membership
and has been approved by BIMCO’s 70-strong Documentary Committee.
Copies of the full text of the Clause are available from
the Clauses Section of BIMCO’s web site at www.bimco.dk.
A set of Explanatory Notes may be obtained from the Secretariat
by contacting documentary@bimco.dk.
BIMCO PRESS RELEASE - 1 Dec 2003