IBIA welcomes BIMCO’s new bunker contracts18.05.2018
IBIA, after reviewing the BIMCO Bunker Terms 2018, welcomed the new contracts, as they will be “a major step in the right direction”, as Henrik Zederkof, Senior Director of Bunker Holding Group and an IBIA board member, said.
The new BIMCO Standard Bunker Terms and Conditions replace the 2015 edition, and were approved by BIMCO’s Documentary Committee on 2 May.
BIMCO introduced a maximum limit of the parties’ liabilities as a key change, in order to lead to wider adoption of the contract. The default limit is the invoice value, but not less than USD 500,000.
The previous BIMCO Bunker Terms edition had unlimited liability, which has been one of the main reasons why suppliers were not using it to a larger extent, Henrik Zederkof, noted.
IBIA’s Chief Executive Officer, Justin Murphy, stated:
IBIA members span the entire industry value chain including suppliers, traders, brokers, ship owners/operators and bunker buyers. IBIA is supportive of BIMCO’s initiative to develop more balanced Terms and Conditions from the perspective of both buyers and sellers of bunker fuels.
The revised BIMCO document are “a major step in the right direction” Mr. Zederkof added, predicting thast this will lead to a much higher use of the BIMCO Bunker Terms 2018 than the previous edition.
Subsequently, IBIA welcomed the efforts to achieve better alignment in the industry and asked feedback from its members regarding the new BIMCO Bunker Terms on how to support these efforts.