Arrest Clause for Voyage Charter Parties 2019

Overview

Arrest clauses in charter parties are frequently one-sided with charterers having the right to terminate the charter party if the ship is not released within two or three days of an arrest. To provide a fairer allocation of risk and responsibility in the event of ship arrest BIMCO has developed two new standard clauses for time and voyage charter parties. Risk allocation is based on the “sphere of responsibilities” approach taken by the Court of Appeal of England and Wales in the "Global Santosh" judgment . Under this approach, a distinction is drawn between issues such as the management of the ship and its crew, which fall within the owners’ sphere of responsibility, and employment for use of the ship which falls within the charterers’ sphere of responsibility.

This clause was published on 14 June 2019.

BIMCO Arrest Clause for Voyage Charter Parties 2019

(a) “Arrest” means the detention, seizure or restraint of the Vessel by order of a Court or government authority. The Owners shall promptly notify the Charterers of any Arrest and keep them informed of the Vessel's status.

(b) In the event of Arrest that is the result of an act, neglect or default of the Charterers, their sub-charterers, servants or agents, or by any other party connected to the employment of the Vessel under this Charter Party, then the Charterers shall take all reasonable steps to release the Vessel, including and without limitation the provision of security. In the event that the Charterers’ security is not accepted, Owners may provide security against the provision of counter-security by the Charterers. All time actually lost thereby shall count as laytime or, if the Vessel is on demurrage, as time on demurrage.

(c) In the event of any other Arrest, then 

(i) the Owners shall take all reasonable steps to release the Vessel, including and without limitation the provision of security; 

(ii) time actually lost shall not count as laytime or, if the Vessel is on demurrage, as time on demurrage;

(iii) provided that the Vessel is ready to load, the Charterers shall have the right to delay loading cargo until the Vessel is released, and time actually lost as a result of Charterers’ decision to delay loading shall count as half laytime or, if the Vessel is on demurrage, as half time on demurrage; and

(iv) provided that there is no cargo on board and the Vessel has not been released within 14 days of the Arrest, the Charterers shall have the option to cancel the Charter Party by giving written notice, unless security has been provided.

(d) The responsible party under subclauses (b) or (c) shall indemnify the other party for losses directly arising out of the Arrest that are reasonably foreseeable. 

Neither party shall be liable to the other party for any indirect or consequential loss or damage suffered by the other party in connection with the Arrest.

Create or edit a contract

The one-stop digital shop for all the standard maritime contracts and clauses you’ll ever need.

 
 

Latest Related News

View All News

Stay up to date

Receive news on the latest developments related to shipping contracts and clauses. Get advice on choosing the right contract for your business and which clauses to add and why.

ELSEWHERE ON BIMCO

Holiday calendar

BIMCO's Holiday Calendar covers general holidays in over 150 countries, plus local holidays and working hours in more than 680 ports around the world.

Holiday calendar

BIMCO's Holiday Calendar covers general holidays in over 150 countries, plus local holidays and working hours in more than 680 ports around the world.

Learn about your cargo

For general guidance and information on cargo-related queries.

More about cargo