BIMCO Adopts STM-clause for Standard Contracts
On November 13, the Documentary Committee of BIMCO adopted a specific STM-clause developed to facilitate just-in-time port calls in commercial contracts. The clause is an instrument to contractually share benefits enabled by STM.
To reap the benefits enabled by Sea Traffic Management, STM, the traditional business models in the shipping industry need to adapt, as STM is optimising the operational conduct of shipping. This change of conduct has a knock-on effect in the underlying commercial obligations, and One identified issue is that charter parties (as well as other contracts) allocate risks in a way that creates a conflict between economic and environmental efficiency. The clause aims to address some of these risks.
The Sea Traffic Management Clause for Voyage Charter Parties enables a contractual arrangement on implementation of STM and helps charterer and ship-owner agreeing on how to split benefits coming from optimized speed when port calls are better synchronized. This innovative clause addresses some issues arising during the optimisation of the voyage and introduces for the first time an environmental element in a commercial context.
Our Institute has been working with the STM project for over 2 years and are proud to have been involved in the drafting of this new clause and in engaging Bimco in the project.
Read the full press release at the STM website