BIMCO is the Baltic and International Maritime Council, one of the world's most important international shipping organizations. Established in 1905, it has since grown into a leading force in standardizing transparency and professionalizing shipping. Headquartered in Copenhagen, it plays a critical role in moving commodities around the world’s oceans.
The Purpose and Mission of BIMCO
What Does BIMCO Stand For?
BIMCO is an acronym for the Baltic and International Maritime Council. The name suggests the organization’s expansive international scope and its continuing role in addressing a diverse maritime community.
Core Objectives of BIMCO:
BIMCO’s core underlying aim is promoting standardization, transparency, and professionalism in the maritime industry worldwide. BIMCO provides a functional standardization framework for the international shipping market in order to facilitate the performance of shipping transactions reasonably and efficiently as the indispensable facilitator of global trade.
These are the main areas in which BIMCO is involved.
Standardization
BIMCO is well-known for its standardized contracts and agreements covering the full range of shipping business: chartering in vessels (or barges) with conventional time charter parties and even general sub-charters. These documents contain clear terms, and the industry widely accepts their applicability in conducting maritime business, such as:
BIMCO Standard Charter Parties: Including the BIMCO Voyage Charter Party and the BIMCO Time Charter Party, these documents spell out key terms and stipulations for chartering a vessel to undertake a voyage or a specific period.
BIMCO Bills of Lading: Standard forms of Bills of Lading contain the terms and conditions of the contract of carriage and provide some particulars regarding the goods.
BIMCO Shipping Documents: From the BIMCO Charter Party Laytime Definitions to the BIMCO Shipmaster’s Security Manual, these standard shipping documents clarify and align terms, cut costs and time, and improve all parties’ knowledge of transactions.
2. Information and Research
BIMCO shares intelligence, market analysis and research with members so they can operate safely and efficiently in the global shipping market.3.
3. Education and Training:
Training span all areas of maritime, but BIMCO develops and delivers specialized courses in best practices, laws and regulations, safety, and general commercial and shipping industry expertise.
The main subject areas are law, commercial shipping, navigation and safety, and environment.
4. Advocacy and Representation:
BIMCO works to influence the policies and regulations relevant to shipping at the global level by attending the International Maritime Organization (IMO) and the United Nations (UN) and representing its members.
In this way, views of the maritime industry are relayed to those drafting international regulations for the shipping industry.
5. Best Practices:
As an international shipping association, BIMCO works to develop guidelines that will help establish reasonable and responsible shipping in general and also promote best environmental practices in particular.
6. Documentation and Administrative Services:
By making the administrative aspects of transactions in shipping and trade easier, BIMCO facilitates the flow of cargo around the globe.
Understanding BIMCO Terms:
BIMCO publishes standardized contracts, agreements, and terms and conditions (T&Cs) for all four sectors of the shipping and maritime industry. These standardized terms, commonly referred to as ‘BIMCO terms,’ are widely used as default terms in international shipping transactions. Some of the more well-known BIMCO terms include:
BIMCO Standard Charter Parties: the BIMCO Voyage Charter Party and the BIMCO Time Charter Party.
BIMCO Bills of Lading: Standardized forms are used as bills of lading.
BIMCO Shipping Documents: Documents such as the BIMCO Charter Party Laytime Definitions.
BIMCO Crew Management Agreements: These are contracts for the engagement and management of crew employed on the ship.
BIMCO Sale and Purchase Agreements: Standardized agreements for the sale and purchase of vessels.
BIMCO TOWCON and TOWHIRE: Documentation for hiring tugs and towage services.
BIMCO Offshore Services Contracts: Contracts for various offshore services.
These BIMCO terms standardise the language in a maritime transaction and help to instil contractual certainty by guaranteeing that the signatories to a contract will have the same understanding of the terms. They also ensure that claims based on non-compliance with a term of the charter are unlikely to be successful and will be treated in accordance with the prevailing industry standard and best practices.
BIMCO Publications:
BIMCO also works with the Witherby Publishing Group, co-publishing industry manuals and guidance, such as the ‘Cyber Security Workbook for Onboard Ship Use’ first published in 2019 (second edition in 2021) in response to the broader industry push for more stringent cyber security standards.
BIMCO and Witherbys also published an updated ‘Check Before Fixing’ guidance title on contractual risks in 2021. Industry-standard contracts for ocean towage, the TOWCON and TOWHIRE contracts, saw updates in 2021 and 2022. In August 2022, BIMCO published guidance on shipbuilding contracts in partnership with Witherbys and the International Chamber of Shipping (ICS) under the title ‘Biofouling Biosecurity and Hull Cleaning’.
Sources:
https://www.clarksons.com/glossary/what-is-bimco/#:~:text=The%20Baltic%20and%20International%20Maritime,in%20the%20international%20maritime%20industry https://en.wikipedia.org/wiki/Baltic_and_International_Maritime_Council
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