Web alert: BIMCO jointly issues 2015 revision to the NYPE form time charterparty

BIMCO has today, jointly with the Association of Ship Brokers and Agents (ASBA) and the Singapore Maritime Foundation (SMF), issued a revision to the New York Produce Exchange Time Charterparty form (NYPE) - the first since 1993.

The changes have been made following lengthy and detailed consultation with the shipping industry and take into account a number of changes in law since NYPE 1993 was issued.

There are various changes, but some of the main ones which may be of interest to our membership are as follows:

1. A new clause 11(b) (hire payments) which spells out that a consequence of a charterer failing to pay hire within three banking days 'grace period' is to entitle an owner to withdraw the ship from the services of the charterer, bring the charter to an end, AND allow the owner to claim damages from the charterer to cover the remaining period of the contract - if they suffer a loss as a result of the early termination of the charter party (and taking into account any steps towards mitigation the owner is to reasonably take following withdrawal).
2. A new clause 4 (redelivery) which makes clear that upon service of the first notice of redelivery by the charterer, the charterer can only give the ship further employment orders which can reasonably be expected to allow redelivery to occur on or before the redelivery date so notified.
3.  A new clause 30 (hull fouling) which makes clear that if hull fouling occurs due to an extended stay in warm waters, in accordance with a charterer's orders, then the hull cleaning obligations are transfered to the charterer and any warranties as to speed and performance of the ship are suspended.
4. The new NYPE form also gives a wider choice as to the applicable law and jurisdicition of the charterparty; and contains provisions dealing with piracy, slow steaming, e-bills of lading and ballast water exchange regulations.

Further information and detailed explanatory notes on the new NYPE form can be found on the BIMCO website at: www.bimco.org.