BIMCO sanctions clauses
The 2020 time and voyage charter sanctions clauses: the warranty structure, the 48-hour alternative orders window and the termination right.
The BIMCO sanctions clauses allocate the risk of trade restrictions between owners and charterers. The Sanctions Clause for Time Charter Parties 2020 and the Sanctions Clause for Voyage Charter Parties 2020 were published on 19 December 2019.
The time charter clause merges and replaces both the Sanctions Clause for Time Charter Parties 2010 and the Designated Entities Clause for Charter Parties 2013. It defines Sanctioned Activity, Sanctioning Authority and Sanctioned Party, takes mutual warranties from both sides covering their contractual counterparties, and gives an express termination right on breach. Where the ship is already on sanctioned employment, charterers must issue alternative voyage orders within 48 hours of owners’ notice of refusal; failing that owners may discharge any cargo on board at a safe port or place including the loading port, the ship stays on hire, and charterers bear the extra cost.
The full article will cover the clause architecture and defined terms, the difference between the time and voyage editions, the 2021 container trade clause, the interaction with hull and P&I cover, and the practical compliance workflow when a listing changes mid-voyage.