![]() VOYWAR 2013 provides the owners with a right to cancel “this Contract of Carriage” or refuse to perform such part of at any time before loading. Be careful with Contracts of Affreightment Clauses which confer an automatic right of termination in the event of an outbreak of war between named countries should be studied carefully and legal advice taken before exercising any cancellation right. However, there is no right of termination – the time charterer must provide alternative employment for the ship. ![]() In addition to allocating responsibility for the cost of additional war risks insurance, BIMCO’s current War Risks Clauses also give the master discretion to refuse to proceed to a “high risk” area, or the right to leave the area if the ship is already there. Earlier versions of these BIMCO clauses, and other older war risk clauses, may address the allocation of costs differently or not cover it at all – so you should carefully read your charter party terms. These clauses clearly allocate the circumstances under which these additional costs can be passed to charterers. The nature of conflict has changed considerably over time and BIMCO strongly recommends that parties incorporate the latest available editions of standard War Risks Clauses into their charter parties: namely the widely used CONWARTIME 2013 and VOYWAR 2013 War Risks Clauses. Whether these additional costs are paid by owners or can be passed to the charterers is determined by the terms of the charter party. APs are quoted based on a percentage of the value of the hull, and in some cases the amount can be substantial depending on the level of risk. Shipowners who agree to trade in these “high risk” areas generally arrange extra insurance to cover additional hull and machinery war risk premiums and crew war bonus. Underwriters day top value is at present 1%. AP is typically charged as a percentage of the hull value. Some underwriters are charging a flat rate for all tonnage operating in the area, while others are differentiating based on the type of tonnage, flag and port of call. As a result of increasing tension in the Persian Gulf area following recent attacks on two tankers, War Risk underwriters are charging additional premiums (AP) for calls to the Arabian Gulf/Gulf of Oman.
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