BIMCO: Standard Bunker Contract Should be Ready for 2015

Grant Hunter, chief officer for legal and contractual affairs, BIMCO

A standard bunker contract being developed by BIMCO could be finalised and published at the end of this year, Grant Hunter, BIMCO's chief officer for legal and contractual affairs, has told Ship & Bunker.

"It is in an advanced stage of development, and by the end of the year I think we'll have a contract that will meet expectations for market roll out and one we can push onto the market," said Hunter.

BIMCO has attempted to create such standard language in the past, including the FUELCON Marine Fuels Purchasing Agreement in the 1990s and the Standard Bunker Contract in 2002, but both failed to gain enough acceptance to be considered a true global industry standard.

Following requests from shipowners, in October last year BIMCO announced that it was developing a new version of the Standard Bunker Contract with the aim of bringing together global bunker interests and creating a standard which would have world-wide adoption.

Singapore Shipping Association

In June 2014, BIMCO announced it was working with the Singapore Shipping Association (SSA) to develop the contract, with support from the Singapore Maritime Foundation (SMF).

"Over the summer a team from the SSA, representing various companies of the bunker supply chain, have been reviewing the draft Standard Bunker Contract and they have made a number of useful comments and suggestions," said Hunter.

"We can accept many of the things that have been put forward and, by and large, I think we're all in agreement."

Hunter said that a BIMCO sub-committee met in Copenhagen on September 17, the outcome of which will be passed to the SSA sub-committee in Singapore for a meeting next week, with the aim of reaching the Contract's final draft.

"If we can agree on all remaining points and finalise the draft wording, then the next phase will be to explore how we can market the new contract together with our Singapore counterparts and other bunker interests globally," he said.

"We will be speaking on the advantages of the new bunker contract at the upcoming Singapore International Bunkering Conference and Exhibition (SIBCON) on October 15th, whereby we are creating an ideal platform for the industry to provide us feedback. From there the contract will be tabled at BIMCO's Documentary Committee meeting in November for adoption. Hopefully we'll have the contract published by the end of the year.

"At that point the Standard Bunker Contract may be used right away, and in 2015 we'll be 'on the road' giving seminars and educating people on its benefits."

Last year BIMCO opened an office in Shanghai, China, making it the first international shipping association to do so.