War Risks Clauses in Charter Parties
War risks clauses have never been more vital for shipowners, charterers and insurers, as the global shipping industry faces unprecedented geopolitical turmoil. The ongoing conflict between Israel and Iran, persistent attacks in the Red Sea, and now the acute threat of closure or disruption in the Strait of Hormuz, have dramatically increased the risks to global shipping.
Against this backdrop, BIMCO’s release of the new CONWARTIME 2025 and VOYWAR 2025 clauses is especially timely, aiming to provide clarity and balance in the allocation of war risks and costs under charter parties. The 2025 updates are more charterer-friendly, with clearer definitions, stricter requirements for Owners to demonstrate reasonableness and transparency of insurance costs, and a new calculation method for additional freight costs when vessels are re-routed due to war risks. For a detailed analysis of these key changes, please refer here to a separate article by Adams & Moore LLP.
For further guidance, we are pleased to provide you with our fourth Forward Defence Guide, which aims to provide a clear and practical overview of war risks clauses in charter parties, explaining their purpose, key forms and practical implications for Owners and Disponent Owners.