Average Bond Clause 2018

Overview

The BIMCO Average Bond Clause 2017 has been updated. The main change is in the final paragraph where the shorter limitation period previously applicable to adjustments arising under the York Antwerp Rules 2004 no longer applies. As a result, in all cases rights to claim under the clause have been brought into line with the six-year limitation period under English law. A number of minor editorial improvements have also been made.

The clause is for use only in contracts of carriage where General Average is to be adjusted, stated and settled according to the York-Antwerp Rules 2016.

If the York-Antwerp Rules 1994 apply to the underlying contract, the BIMCO Average Bond Clause 2007 must be used.

This clause was originally published in June 2005, amended in October 2007, 2017 and 2018.

BIMCO Average Bond Clause 2018

On presentation of this bill of lading and

(i) payment of any freight due; and

(ii) provision of a General Average guarantee or deposit in respect of General Average, Salvage and Special Charges,

it is agreed that, in consideration of the delivery of the cargo described on the face of this bill of lading (“the cargo”) to the presenter of the bill of lading, or to order, the party or parties presenting this bill of lading, or their assigns, shall, without the provision of an average bond:

(a) pay the proper proportion of any general average and/or salvage and/or special charges which may be ascertained to be properly due from the cargo or the shippers or owners thereof,

(b) where appropriate, contribute to general average and/or salvage and/or special charges in accordance with an adjustment prepared pursuant to the non-separation wording contained in Rules G and XVII of the York-Antwerp Rules 2016,

(c)

(i) at the time of presentation of the bill of lading, furnish a copy of the commercial cargo invoice rendered to the receiver, and

(ii) as soon as is reasonably practicable following delivery of the cargo, supply evidence to the Carrier, their Agent or the appointed average adjuster of the nature and value of any damage to or loss of the cargo.

(d) following delivery of the cargo make a payment on account of such sum as is certified by the average adjuster to be properly due from the cargo and is payable in respect of such cargo by the shippers or owners thereof.

Rights to claim under this Clause shall be extinguished, unless an action is brought by the party claiming within a period of six years from the date of issue of the general average adjustment.

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