Revised Supplytime from BIMCO

BIMCO’s Documentary Committee has adopted Supplytime 2017, a revision of Supplytime 2005, reports Standard P&I. Supplytime 2005 was designed to charter offshore support vessels in the oil and gas sector. The knock-for-knock liability and indemnity regime in the contract provided a clear risk allocation, with the aim of minimizing the number of disputes and reducing insurance costs. However, over the years it was perceived in the offshore industry to be too favourable to Owners. The revision was carried out by representatives from Owners, Charterers, brokers, insurers and legal interests and took more than two years to complete.

The aim of the revision was to make the contract more balanced between Owners and Charterers, strengthen its knock-for-knock, update it so that it reflected current offshore industry practice and clarify its language so that it was more readily understandable to non-native English speakers.

The scope of the contract i.e. to charter offshore support vessels, remains unchanged. Standard Club said that “although it is used for a variety of other purposes e.g. offshore installation operations, it was acknowledged by the revision subcommittee that the contract would become too complicated if it was expanded beyond its core use.”

The definition of the Charterers Group has been broadened in Supplytime 2017 so that it includes Charterers clients (of any tier) and their affiliates, co-venturers and contractors and sub-contractors of any tier, so that all parties working at the offshore site are covered under the knock-for-knock regime. The exclusion for consequential losses has also been amended so that direct as well as indirect losses are excluded under the knock-for-knock, whereas only indirect losses were excluded in Supplytime 2005.

The knock-for-knock has also been strengthened in Supplytime 2017 by removing most of the exceptions to it, including the indemnity provided by Charterers for damage caused to the vessel due to the carriage of dangerous cargoes or the supply of unsuitable fuel. The General Average and New Jason clause and Both-to-Blame clause have also been removed because, said Standard, they undermined the knock-for-knock.

Standard said that “the revised Supplytime 2017 is a fairer and more balanced contract than Supplytime 2005 and it should provide our shipowner members with greater certainty regarding the scope of the indemnity provided by Charterers under the knock-for-knock regime. The new Supplytime 2017 will be published shortly by BIMCO.”