Charter Terms Develop To Address Increased Piracy Risks

The upsurge in piracy in the Gulf of Aden has continued since the beginning of this year, despite increased security measures. During March 2009, four vessels were reported captured by pirates, and several more vessels were attacked. Against this background, charterers and ship owners have been seeking to develop contractual provisions dealing with piracy, particularly in time charters.

Earlier this month BIMCO published its new Piracy Clause for Time Charter Parties. The Clause is avowedly intended to provide protection to shipowners. However, it helpfully identifies the issues arising from the risk of piracy which charterers should pay heed to when negotiating charters.

The BIMCO Piracy Clause is based on the CONWARTIME 2004 provision. It begins with a general stipulation that a vessel may not, without the shipowners' prior written consent, be ordered through places "where it appears that the Vessel, her cargo, crew or other persons on board the Vessel, in the