BIMCO To Go By York-Antwerp Rules 2016
By Joseph R. Fonseca
May 11, 2016
The BIMCO Documentation Committee, which met yesterday in Copenhagen, has agreed that all new and revised BIMCO charter parties and bills of lading will now refer to General Average Adjusted in accordance with the new York-Antwerp (YAR) Rules 2016 .
The 2016 YARs were adopted by the Comité Maritime International (CMI) Assembly at its 42nd International Conference held last week in New York. The 2016 YAR largely mirrors the 1994 YAR, which BIMCO has recommended to date as the basis for overall average adjustments, while containing useful clarifications and additions, for example on low value cargoes. Importantly, it has been agreed that an annual interest rate of LIBOR plus 4 percentage points will apply under the new rules, while the 2% commission on owners’ disbursements has been removed.
The 1994 version of the YAR remained prominent despite a more recent 2004 revision. The 2004 version was considered less shipowner friendly and BIMCO twice reviewed and came out in favor of using the 1994 version, until ‘now.
Søren Larsen, Deputy General Secretary of BIMCO, said: “We are very pleased that the CMI has adopted a new set of rules that live up to the expectations of the shipping industry. BIMCO has been engaged in the review process over the past few years with other industry associations and it is encouraging that we can now reference the new rules in our standard documents.
“It is very positive that the CMI was able to agree on a new set of YARs, which takes into account the views of commercial parties and I commend all stakeholders involved for their efforts in this regard,” continued Mr Larsen. “I view today’s decision from the Documentary Committee as a clear signal that we have moved forward and look forward to doing our part to ensure the success of the new rules.”
BIMCO was officially represented in the review by the International Chamber of Shipping and has made a significant contribution to the process over the past few years.