P&I Club

Update Volume 2021/04 BIMCO “Just in Time” clause for voyage charter parties

Published on 26 february 2021

The BIMCO has published a “Just in Time” clause for voyage charters, in particular for the bulk sector. The “Just in Time” principle aims to ensure greater efficiency and reduce CO2 emissions. The intent of the clause is to facilitate the sharing of certain information to allow the owners and the charterer to optimize the time of arrival without deviating from their normal obligations under the charter party.

BIMCO hopes that with this clause, parties can limit their fuel consumption, emissions and waiting times. The clause gives the charterers the right to ask owners to optimize the speed of the vessel to meet a specified arrival time. The safety of the vessel will always be paramount and any request for speed adjustments must remain within safe an operational limits. The clause requires charterers to include reference to the requirements of the clause in the bill of lading and waybills to prevent the owners from breaching their obligations towards the cargo interests. A copy of the clause can be found below.

We are happy to assist our members if they need advice or assistance.

BIMCO Just in Time Arrival Clause for Voyage Charter Parties 2021

(a) The Owners and Charterers shall use their best endeavours to obtain and share information regarding the Vessel’s arrival time, this shall include, but not be limited to, information from, or required by, any relevant third party. Any port specific requirements shall be met.

(b) Notwithstanding any other clause in this Charter Party, the Charterers shall be entitled to request the Owners in writing to adjust the Vessel’s speed to meet a specified time of arrival, or closest thereto, at a particular destination. Such request shall always be subject to the Owners’ consent which shall not be unreasonably withheld and, in the case of an approach voyage, also subject to agreeing an amended cancelling date. The Charterers shall not be entitled to request an adjustment of speed outside the normal safe operational limits of the Vessel.

(c) Extra time used on a sea voyage as a direct consequence of the Vessel adjusting speed pursuant to the Charterers’ request shall be the difference between:

(i) the “estimated time of arrival” as provided by the Vessel prior to the Charterers’ request to adjust the Vessel’s speed to meet a specific time of arrival, or closest thereto, at a particular destination; and

(ii) the “actual time of arrival” at that particular destination, or closest thereto.
Such extra time shall be compensated by the Charterers to the Owners at USD ___ per day pro rata or as otherwise agreed by the parties which shall take into account the savings in fuel by the Owners and shall be payable by the Charterers to the Owners, prior to completion of final discharge.

(d) Where the Vessel proceeds at a speed adjusted in accordance with subclause (b), this shall constitute compliance with, and there shall be no breach of, any obligation as to despatch and shall not constitute a deviation.

(e) The Charterers shall ensure that the terms of the bills of lading, waybills or other documents evidencing contracts of carriage issued by or on behalf of the Owners provide that compliance by Owners with this Clause does not constitute a breach of the contract of carriage. The Charterers shall indemnify the Owners against all consequences and liabilities that may arise from bills of lading, waybills or other documents evidencing contracts of carriage being issued as presented to the extent that the terms of such bills of lading, waybills or other documents evidencing contracts of carriage impose or result in the imposition of more onerous liabilities upon the Owners than those assumed by the Owners under this Clause.

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