We are developing a new Virtual Notice of Readiness and Just in Time Arrival Clause for Voyage Charter Parties aimed at supporting more efficient voyage execution while addressing some of the legal and commercial barriers to Just in Time (JIT) operations.
We are looking to provide a contractual framework that enables parties to make better use of voyage planning and arrival optimisation. A key feature of the draft is the introduction of the concept of a Virtual Notice of Readiness (NOR).
In some ports, digital platforms now allow vessels to join a berth queue before physically arriving at the port. However, under traditional voyage charter party concepts, a valid Notice of Readiness generally requires the vessel to have arrived at the contractual port or place. This can make it difficult for owners and charterers to take full advantage of these emerging digital queuing systems.
To address this issue, the draft clause provides that, where facilitated by the relevant port authority and subject to charterers' consent, owners may tender a Virtual NOR before the vessel's physical arrival. The Virtual NOR would have the same legal effect as a conventional NOR, provided all other requirements for a valid NOR have been satisfied. The intention is to enable parties to make use of digital port queuing systems while maintaining contractual certainty regarding the commencement of laytime.
The draft clause also incorporates a simplified contractual framework for JIT arrivals. Charterers may request owners to adjust a vessel's speed to meet a specified arrival time, while the clause establishes a mechanism for sharing fuel savings and compensating owners for any additional voyage time resulting from such adjustments.
By combining Virtual NOR and JIT arrival concepts in a single contractual framework, the subcommittee aims to facilitate closer alignment between operational efficiency, digitalisation initiatives and commercial incentives, while preserving an appropriate balance between owners' and charterers' interests.
As part of BIMCO's documentary process, we are now looking to engage a broad range of stakeholders to review and test the draft clause. Input from owners, charterers, operators, brokers, port representatives, lawyers, P&I clubs and other interested parties will help ensure that the final clause is practical, balanced and reflects market needs.
Interested in participating?
If you would like to join the sounding board and contribute to the development of this clause, please send your name, company, position and contact details to contracts@bimco.org.
The sounding board will receive draft documents for review and be invited to provide comments throughout the development process.
We welcome participation from all sectors of the industry and look forward to receiving your feedback.
