In light of the emerging security concerns in the Persian Gulf, Gulf of Oman, Indian Ocean, Gulf of Aden and Southern Red Sea, we encourage you to undertake a careful review of your existing and future charter party terms. Owners and charterers are advised to engage proactively with their contractual counterparties to limit exposure to vessel cargo, and crew risks in the affected region. Each charter party must be assessed on its own terms, and you should familiarise yourself with the rights, obligations and risk allocation created by any BIMCO VOYWAR, CONWARTIME or other relevant provisions including any Force Majeure clauses, included in their agreements.
Incorporation of the BIMCO War Risk Clause for Voyage Charter Parties 2025 (VOYWAR 2025)
Where parties have incorporated an unamended VOYWAR 2025 clause into their voyage charter, the owners may be entitled to refuse or withdraw from performing a voyage if the vessel, cargo or crew may be exposed to war risks, as defined in the clause, in the affected area. The clause provides contractual mechanisms to deviate, adjust the voyage, request alternative orders, or decline to proceed, depending on the level of risk and intelligence available at the time. Owners’ rights under the clause must, however, be exercised reasonably and based on an objective assessment of the risk of the specific situation.
Charterers should therefore be aware that the clause may significantly impact the vessel’s obligations and the commercial expectations of voyage performance. Conversely, owners should understand the importance of the procedural steps in the clause—such as notices and request for new orders.
Some contracts may contain earlier versions of VOYWAR and while BIMCO invariably recommends that the most recent version is used, it is important that the parties look to the terms of the clause incorporated when assessing the rights provided.
Incorporation of the BIMCO War Risk Clause for Time Charter Parties 2025 (CONWARTIME 2025)
For time charter parties incorporating an unamended CONWARTIME 2025 clause, the structure and effect differ from VOYWAR 2025. Under CONWARTIME, owners may refuse to comply with orders that would expose the vessel, cargo or crew to defined war risks in the region. Once the vessel is placed at the charterers’ disposal, the commercial use of the ship becomes the charterers’ responsibility, and the clause is designed to balance navigational safety with the broad employment rights granted to the charterers under a time charter.
Parties should carefully consider how the clause interacts with offhire provisions, trading limits, and any region-specific protective measures. Practical issues, such as whether alternative safe routes exist, whether additional insurance premiums apply, and how delays are treated, must be carefully evaluated considering the particular charter party. It is important to note that the clause applies whether the risk assessed existed at the time of entering into this charter party or occurred thereafter and hence it is important to include this also in future contracts.
Incorporation of the BIMCO Force Majeure Clause 2022
If parties have incorporated the unamended BIMCO Force Majeure Clause, they should be aware that the clause applies only where a qualifying force majeure event occurs and prevents, delays or makes performance of obligations impossible. The Force Majeure Clause is not designed to function as a general “risk allocation tool,” and it does not automatically excuse performance merely because operating in a region becomes riskier, more expensive or commercially undesirable.
Increased risk of attacks, security incidents or geopolitical volatility in the Persian/Arabian Gulf, Gulf of Oman, Indian Ocean, Gulf of Aden and Southern Red Sea may not in itself constitute a force majeure event. Parties must therefore consider whether their specific circumstances satisfy the strict test of prevention and whether the notice requirements and mitigation obligations can be met in practice.
Considering the Clauses Together
These clauses, whether unamended BIMCO versions or amended variations, must be interpreted together, within their contractual and factual context. This also includes other relevant trade specific clauses including own Force Majeure or War Risk clauses. Their combined effect will determine:
- Whether the vessel may refuse to proceed
- Whether delays fall on owners or charterers
- Whether deviation is permitted
- How extra costs are allocated, and
- Whether a party may be excused from performance at all.
No clause operates in isolation. The interplay between war risk provisions, force majeure protections and any bespoke amendments can materially change the balance of risk in volatile regions.
Recommended Actions
We strongly encourage you to:
- Consult your P&I Clubs at an early stage
- Seek advice from insurers, local P&I correspondents, agents and, where necessary, legal counsel
- Monitor ongoing updates regarding the security situation, and
- Document internal assessments to support contractual decisions made under VOYWAR, CONWARTIME or force majeure provisions.
BIMCO will continue to closely follow developments in the area and will issue updated guidance as the situation evolves.
If you are a BIMCO member, see other contractual advice in our member pages (member login required)
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