Bimco issues new war and piracy clauses

Donald Chard, of Bimco, reviews the latest piracy and war clauses

In an uncertain world, war and piracy are ever present risks in maritime trade. Without adequate contractual protection, a shipowner or operator may be exposed to unexpected costs or face danger in fulfilment of charter party obligations. War clauses have been available for many years. However, across the years, the concept of war has changed and events now often escalate without any identifiable beginning or tensions may erupt through factional fighting or localised actions. At the same time, the international community today is much more likely to co-operate through the United Nations and other organisations to try to ease a situation with possible implications for trading and navigation.