BIMCO embraces ship layup and recycling contracts:

At the bi-annual meeting of BIMCO’s 60-strong Documentary Committee held in Vancouver on June 6, two new standard contracts were adopted by the organisation. A new form was designed for the laying up of vessels using the services of third party layup managers.

This new agreement, code named LAYUPMAN, is modelled on the widely used SHIPMAN agreement and applies the same principles of agency and co-assurance. 

The second new standard form adopted in Vancouver is a new contract designed to provide ship owners who wish to recycle their vessels in a safe and environmentally responsible manner with a commercial solution that mirrors many of the features of the Hong Kong Convention on the Recycling of Ships, which is not yet in force.

BIMCO said it was aware that there are a small but growing number of ship owners willing to take the “green” route when disposing of their older ships, but that existing contracts used in the sale of vessels for recycling do not fit the bill. 

The newly adopted BIMCO recycling contract, code named RECYCLECON, is tailored to the needs of those ship owners and reflects, where possible, the requirements of the Hong Kong Convention. As such it provides a useful contractual tool for owners and recycling yards alike during the interim period before the convention comes into force.

Source: Baird Maritime. Tuesday, 14 June 2011 06:57

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