BIMCO simplifies its law and arbitration clause

BIMCO simplifies its law and arbitration clause | BDM Blog | BDM Law

We see many cases where poorly drafted or inconsistent dispute resolution clauses have created confusion. We would therefore encourage all our clients to consider using a standard arbitration clause as a template. From time to time, these templates are reviewed. For many years BIMCO has put forward a standard clause and it has just been revised. The main differences are:

  • A general overhaul of the structure of the clause. It is now shorter and more simplified. There are more options now on the arbitral seat although it remains to be seen if this will have any impact on the majority of cases being referred to arbitration in London.
  • The mediation clause is now freestanding which allows parties to choose whether or not they want to include mediation, rather than having to strike it out.
  • There is a provision dealing with notices which provides a mechanism to deal with sending notices and communications relating to the arbitration. This is a welcome change as it removes some of the potential disputes that can arise when notices are given and it is later alleged that they were sent to the wrong person or address. Parties are free to choose the effective means of serving notice of arbitration but they need to provide the email address of someone authorised to receive arbitration notices. Notices are considered effectively served immediately on sending by email.

These are all welcome changes and we would urge clients to use the template even if they wish to make changes. We expect that the new clause will eventually appear in the majority of new shipping contracts.

BDM is a specialist shipping law firm offering high quality legal advice and representation at a reasonable price. Please follow us on social media by clicking below.

Other Recent Blogs

  • We are thrilled to announce that BDM Law has been recognised in the Global 100 Business Excellence Award 2024 | BDM Blog | BDM Law
    May 7, 2024

    BDM Law recognised in the Global 100 Business Excellence Award 2024 – United Kingdom

    We are thrilled to announce that BDM Law has been recognised in the ‘Global 100 Business Excellence Award 2024 – United Kingdom’ by Corporate America Today. This recognition reflects our commitment to delivering bespoke legal advice and practical solutions to our clien[...]

    Read more >
  • Anti Suit Injunctions What are they and when can you get one | BDM Blog | BDM Law
    March 6, 2024

    Anti Suit Injunctions – What are they and when can you get one?

    Recently, we have been advising clients on a possible anti-suit injunction (ASI) against proceedings commenced in breach of an exclusive jurisdiction clause. On the back of that, we felt it might be useful to release this blog to shed more light on these injunctions, in part[...]

    Read more >
  • Red Sea To go or not to go | BDM Blog | BDM Law
    February 21, 2024

    Red Sea: To go or not to go?

    The world is adjusting to the new reality of ships refusing to run the risk of being targeted by missiles launched by Houthi rebels. Over 50 ships have now been targeted with some seriously damaged. So far, no crew have been killed or injured. However, the risks remain. It[...]

    Read more >
+44 203 968 0500
+44 7887 710 950