BIMCO Updates War Risk Clauses Amid Red Sea Crisis and Global Maritime Threats

BIMCO, the world’s largest shipping association and one of the primary providers of standardized contracts and charter party agreements used in the maritime industry, has announced significant updates to its War Risk Clauses for 2025 in response to escalating geopolitical challenges and ongoing maritime security concerns. 

The revisions come at a crucial time as the shipping industry grapples with threats in the Red Sea and the continuing impact of the Ukraine conflict.

The approved changes include two major updates: the VOYWAR 2025 for Voyage Charter Parties and CONWARTIME 2025 for Time Charter Parties. These modifications address contemporary maritime security challenges while maintaining the clauses’ fundamental structure and industry recognition.

“The revisions to the War Risks Clauses are essential to accurately reflect the dynamics of conflicts today, not least the war in Ukraine and recent attacks on shipping in the Red Sea,” explains Nicholas Fell, Chairperson of BIMCO’s Documentary Committee.

A key focus of the revision centers on war risk insurance premiums, particularly for vessels entering JWC (Joint War Committee) Listed Areas affected by Hull War, Piracy, Terrorism, and Related Perils. The updates clarify premium payment responsibilities between charterers and owners, especially crucial given recent Houthi attacks in the Red Sea region.

The revised clauses also introduce an enhanced calculation method for additional freight charges, specifically designed to accommodate re-routing scenarios due to unsafe passages, expanding beyond just unsafe port situations.

“In revising our War Risk Clauses, our focus has been on the constant challenges and threats to the way our industry operates. However, we have at the same time aimed to introduce as few changes to the clauses as possible, as they are widely used and recognised within the industry,” says Stinne Taiger Ivø, Deputy Secretary General at BIMCO.? 

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