New BARECON 2017 calculates future trends
BIMCO has published a new edition of BARECON, the industry's go-to standard contract for bareboat chartering. The new leaner version of the contract, introduces a formula for calculating a fair share of costs for any compulsory structural changes or new equipment that may be implemented during the charter period.
BIMCO started revising the contract in April 2016, responding to, and to reflect changes in commercial practice and legal developments since BARECON was last updated in 2001.
Following the "Ocean Victory" judgment earlier this year, BIMCO has also clarified the wording of the insurance clauses in relation to an insurer's right to claim against third parties. BARECON 2017 keeps pace with modern bareboat chartering practice and will be useful for all those involved in specialised long term bareboat chartering agreements.
"BARECON 2017 is arguably one of the most widely used BIMCO documents in the industry. This is a significant revision which will help make it an even more usable and well-balanced document. The new revised document should serve the industry successfully for the next 10-15 years", said Captain Ajay Hazari of Anglo Eastern Ship Management, Hong Kong, who chaired the BARECON 2017 revision drafting team.
Other new features of BARECON 2017 include an option for charterers to extend the charter period; tighter notice requirements on delivery and redelivery; and it gives charterers the right to place staff on board for familiarisation, prior to delivery.
"BARECON 2017 builds on the success of previous editions of this industry standard contract. It introduces features that are highly relevant to modern bareboat chartering practice, such as a fair way of sharing the cost of mandatory new equipment. The new edition can easily be tailored to suit the needs of individual users. We hope it will continue to be the first choice of contract for anyone looking to bareboat charter a ship," said Grant Hunter, Head of Contracts and Clauses at BIMCO.
