FOREWORD

The Baltic and International Maritime Council (“BIMCO”) has released SUPPLYTIME 2017 as amendments to SUPPLYTIME 2005. BIMCO released SUPPLYTIME 2017 to accommodate developments in vessel charter practices for oil and gas activities, where there was a need to revise existing clauses and the need for additional clauses which is not yet available in SUPPLYTIME 2005. In general, there are several objectives of the release SUPPLYTIME 2017, as follows:

1. To further apply the principle of equality between the vessel owner (the “Owner”) and the charterer (“Charterer”);

2. As an adjustment of clause in SUPPLYTIME 2005 with the latest case law; and

3. Revised some terms in SUPPLYTIME 2005.

SUMMARY

Throughout the growing needs that occur in practice, BIMCO assesses the need for an update on SUPPLYTIME 2005 which has been used as a reference in the last 12 years. Some major changes contained in SUPPLYTIME 2017, namely:

1. Removal of some exceptions from Knock for Knock System. In SUPPLYTIME 2017, there is a removal of several clauses which are included in the exclusion of the non-accountability of the other party (Owner or Charterer) for any loss or damage suffered by himself [Clause 14 (a) SUPPLYTIME 2017];

2. Revisions to the terms used. For example, exceptions to consequential damages [Clause 14 (c) SUPPLYTIME 2005] have been adjusted to the most recent case law. In SUPPLYTIME 2017 there is a separation between the list of excluded losses, with consequential loss and indirect loss which is specified in separate categories [Clause 14 (b) SUPPLYTIME 2017];

3. The addition of new clauses as an adjustment to current practice, as follows:

a. The clause on audit obligations and audit procedures, to ensure that the vessel is seaworthy, immediately after delivery of the vessel, regardless of dispute relating to procedural compliance [Clause 5  (b) SUPPLYTIME 2017];

b. Clause on the requirement of an equal amount between the volume of fuel at the time of redelivery of the vessel and the volume of fuel at the time the vessel was delivered [Clause 10 SUPPLYTIME 2017];

c. Clause on the parties’ commitment to comply with all applicable anti-corruption laws and apply all procedural steps to prevent corruption and bribery (Clause 28 SUPPLYTIME 2017);

d. Clause on the obligation of the Owner to ensure compliance with the Maritime Labor Convention [Clause 29 SUPPLYTIME 2017];

e. Clause which is stating that the Owner is not obliged to comply with any order to allow the use of vessels in trade or travel, which in the reasonable judgment of the Owner, will allow the parties related to the Owner to be subject to sanctions imposed by the state or international organization [Clause 30 SUPPLYTIME 2017];

f. Clause which is stating that the Owner and the Charterers guarantee that during the charter period, they will not commit any unlawful acts [Clause 31 SUPPLYTIME2017];

g. The vessel lay-up clause, as BIMCO considers this process complex enough to require specific arrangements [Clause 33 SUPPLYTIME 2017].

4. The clause concerning the use of Maintenance Day where the rental fee can be obtained by the Owner if there are any unused maintenance day, has been removed. [Clause 13 (c) SUPPLYTIME 2017].

CONCLUSION

BIMCO released SUPPLYTIME 2017 as an adjustment to the growing practice of using SUPPLYTIME 2005, where there is a need to revised existing clauses and adding necessary clauses which is not yet accommodated in SUPPLYTIME 2005.

To accommodate these issues, BIMCO released SUPPLYTIME 2017, which there are changes in the form of: (i) removal of exceptions in knock for knock system; (ii) Revision of terms; (iii) the addition of new clauses; (iv) Revision clause on maintenance day. SUPPLYTIME 2017 is expected to be a more convenient reference to the requirements in the practice of charter agreements and promote a more equal position between the Owner and Charterer.

11 Mei 2018 005/AP-LH/V/2018-KBA-