The outbreak of COVID-19 and its impact on business and society is unprecedented. We are learning day by day how we must adapt to these new circumstances. Ports around the world are handling the situation in different ways and it is difficult to provide a one-size-fits-all contractual solution. What one port in one country of the world is doing, restricting or prohibiting, is not necessarily the same as a port in a neighbouring country does. BIMCO urges the industry to be pragmatic and work together to find solutions. Not every answer will be found in the contract and parties should do their best to communicate openly about the issues they face and identify compromise solutions to find a way through these difficult times.
This Q&A is a list of commonly asked questions together with our answers.
The threshold for invoking BIMCO’s Infectious or Contagious Diseases (IOCD) Clauses is necessarily set at a high level to avoid misuse. The two clauses, one for time and the other for voyage charters, are designed to respond to extreme outbreaks of diseases and not just “everyday” illnesses.
The spread of the COVID-19 virus has led to shipyards claiming ‘force majeure’. This article looks at key issues shipowners should be aware of when it comes to shipbuilding contracts and force majeure.
BIMCO has received numerous enquiries from members uncertain about how the Novel Coronavirus outbreak will impact contracts. The following includes some general remarks, but it is important to evaluate carefully each situation on its own merits.