BIMCO Produces New COVID-19 Crew Change Clause

Baltic and International Maritime Council (BIMCO) has produced a COVID-19 Crew Change Clause for Time Charter Parties in response to the extraordinary circumstances faced by many owners whose crew have had to remain on board during the pandemic “lockdown” for periods often extending beyond their contracts of employment.

Although travel restrictions are beginning to ease, there are still restrictions in many countries impacting on crew changes.

The new clause is designed to give owners the liberty to deviate for crew changes under tightly defined circumstances.

It also provides an option for charterers to contribute to the crew change in recognition of the potentially high cost of making a COVID-19 related crew change.

“Although the cost of crew changes is usually for owners’ account under a charter party, the extraordinary and unusual circumstances created by COVID-19 have left some owners unable to conduct crew changes on the ship’s trade route.

” With crew now on board for periods extending beyond their contracts of employment, owners need to have the flexibility to deviate to an alternative place if crew changes can’t be done at the places where the ship is ordered by charterers.

” This clause is designed to help them with that process and to encourage charterers to assist,” says Soren Larsen, Deputy Secretary General, BIMCO.

The clause is available to download from the BIMCO website along with explanatory notes providing a guide to its use and application.

BIMCO has collected statements from a number of flag states, port states and recognised organisations/classification societies (RO) and produced a regulatory analysis concerning COVID-19 and its possible implications on statutory ship certificates, surveys, inspections or audits under relevant International Maritime Organization (IMO) and International Labour Organization (ILO) instruments.

Due to the COVID-19 pandemic, some ships may experience operational challenges such as shipyards or dry docks closing down.

In addition, surveys and audits can in some cases not be conducted because surveyors are unable to attend the ships due to travel restrictions or quarantines.

The IMO had issued Circular Letter No. 4204/Add.1, addressed to all its member states.

In this circular, the IMO Secretary-General addresses COVID-19’s impacts on the shipping industry, including implementation and enforcement of mandatory IMO requirements.

The circular provides encouragement for flexibility. The IMO can only encourage co-operation and a pragmatic approach between flag and port states, and cannot issue a general exemption from the mandatory provisions of the relevant statutory conventions, nor delay implementation of mandatory regulations coming into force – not even in the current uncertain situation.

Furthermore, on 27 March 2020 IMO issued Circular Letter No. 4204/Add.6 reiterating the need for states to keep the flow of commerce by sea without disruption:

“In these difficult times, the ability for shipping services and seafarers to deliver vital goods, including medical supplies and foodstuffs, will be central to responding to, and eventually overcoming, this pandemic.

“It is, therefore, crucially important that the flow of commerce by sea should not be unnecessarily disrupted.

“At the same time, the safety of life at sea, and protection of the marine environment, must also remain paramount.

“One of the goals of IMO, as stated in its Convention, is to ensure availability of shipping services to the commerce of the world, for the benefit of humanity.

“I urge all IMO Member States to bear this in mind when framing their policy decisions with regard to the coronavirus.

“Defeating the coronavirus must be the first priority, but global trade, in a safe, secure and environmentally friendly manner must be able to continue, too.”