BIMCO Plans Marketing Push for Standard Bunker Contract

Incoming IBIA Chair Jens Maul Jørgensen is helping to draft the contract

The Baltic and International Maritime Council (BIMCO) says it is planning a big effort to raise awareness of a new standard bunkering contract it is developing.

The organisation has developed similar language in the past, but the contract language has not been adopted widely enough to be considered an industry standard.

"The original drafters of the Standard Bunker Contract back in 2002 did an excellent job of creating a well-balanced and clearly written set of terms and conditions for the purchase of marine fuels," said Grant Hunter, BIMCO's chief officer for legal and contractual affairs.

"While it is flattering to note that many of the clauses in our Bunker Contract have found their way into supplier's contracts, our objective is to establish a harmonised set of BIMCO terms and conditions that are recognised and used by the industry world-wide."

Hunter said a new review has found that, while the contract language makes sense for bunker buyers and sellers, it may not have been marketed sufficiently in the past.

"So our strong focus this time, once the amendments are agreed, will be to work together with purchasers and suppliers and other associations around the world to promote and raise awareness of the BIMCO Standard Bunker Contract," he said.

Hunter added that the marketing effort will be helped by Jens Maul Jørgensen, the incoming chairman of the International Bunker Industry Association (IBIA), who is part of the team drafting the contract.

A second review of the contract found that only a few amendments will be needed to update the contract's terms and conditions.

The next step for the project will be discussions with Singaporean and Rotterdam bunker players, a general industry consultation, and then the presentation of the revised contract at an April 2014 meeting of BIMCO's Documentary Committee.

BIMCO has said previous efforts to create standard contract language encountered problems with differences between suppliers and purchasers and between firms operating in different regions.