In a cross-continent collaboration, BIMCO and its partners have pulled the New York Produce Exchange time charterparty into the 21st century
BIMCO has released its highly-anticipated revised New York Produce Exchange time charterparty (NYPE).
Three years in the making, the revised document is the joint work of BIMCO, copyright holder the Association of Ship Brokers and Agents (ASBA) and the Singapore Maritime Foundation (SMF).
BIMCO claims the new version will be “both balanced and comprehensive”, taking into account the interests of owners and charterers to create a less biased agreement than previous versions.
In the final year-long phase of its development, BIMCO released a consultation draft to the industry for review and feedback and initiated a series of seminars to explain the thinking behind the new edition.
“Overall, our aim was to create a modern NYPE with global appeal – and I believe that this has been achieved”
BIMCO points out that much has changed in the industry in the 20 years since NYPE was last updated and while the core elements of the contract remain the same, there are some important changes. Most notably, the charterparty incorporates many of the rider clauses that are routinely added to the existing NYPE.
Inga Froysa, chairperson of the BIMCO NYPE revision sub-committee, said: “Users of the current NYPE form will certainly still recognise and be familiar with the core elements of the time charter party, but they can also expect to see some significant changes and improvements. We have made sure that any new clauses incorporated into the new NYPE are relevant, balanced and consistent with the other provisions.
“Overall, our aim was to create a modern NYPE with global appeal – and I believe that this has been achieved.”
Ripe for updating
Nigel Hawkins, chairman of the ASBA drafting committee, added: “The 1993 NYPE Charter Party was ripe for updating. ASBA is therefore pleased that with our friends at BIMCO and the Singapore Maritime Foundation we have agreed the wording of a NYPE fit for the present day. ASBA hopes that the industry will find this new NYPE a clear and logical document, and, that the industry will note some familiar language contained in past NYPE documents.”
Singapore Maritime Foundation chairman Michael Chia pointed out that this is the first international shipping form that is a collective effort spanning the globe involving ASBA, BIMCO and the SMF. This global industry stakeholder collaboration has, he believes, led to a revised contract that better meets user needs and that will be quickly accepted and adopted.
Key features of NYPE 2015 include:
- A choice of trip or period charter.
- Optional Not Always Afloat But Safely Aground (NAABSA) provision.
- Choice of cargo readiness at delivery port or first load port.
- Obligation on owners/charterers to restrict further employment immediately prior to delivery/re-delivery that might delay the ship.
- Owners to provide and maintain Certificates of Financial Responsibility for oil pollution as required at the start of the charter period.
- Detailed bunker provisions for period and trip charter options covering quantities and prices; bunkering operations and sampling; quality and liability; fuel testing; and low sulphur fuels.
- Updated and clarified hire payment provisions relating to grace period, suspension and withdrawal consistent with recent legal decisions.
- Detailed and clarified speed and performance clause.
- A broad choice of law and arbitration options – New York/US law; London/English law; Singapore/Singapore or English law; or a free choice agreed by the parties.
There are also a number of additional clauses, including:
- hold cleaning/residue disposal in accordance with MARPOL;
- International Maritime Solid Bulk Cargoes (IMSBC) Code;
- hull fouling;
- electronic bills of lading;
- slow steaming;
- ISM/ISPS Codes;
- ballast water exchange regulations