Re: ISM Code - BIMCO Standard ISM Clause of voyage and time-charterparties (February 1998)

Circular No. 11/97 February 1998

TO THE MEMBERS

Dear Sirs,

RE: ISM CODE - BIMCO STANDARD ISM CLAUSE OF VOYAGE AND TIME-CHARTERPARTIES

In response to a number of inquires which we have received from Members in connection with ISM clauses to be incorporated into time and voyage charterparties we are issuing this circular.

Most standard charterparties include a clause which provides for compliance with statutory and regulatory requirements to enable the vessel to trade pursuant to the terms of the charterparty. There is in our view no legal requirement for a specific clause relating to ISM Code compliance as owners will be bound by the ISM Code?s requirements under the law of the vessel?s flag state.

Nevertheless, in response to the demand of Members of BIMCO a BIMCO Standard ISM Clause has been drafted and meets with our approval. In the event that a Member wishes to provide for ISM Code compliance in a voyage or time charterparty we therefore recommend the following clause:

From the date of coming into force of the International Safety Management (ISM) Code in relation to the Vessel and thereafter during the currency of this Charterparty, the Owner shall procure that the Vessel and "the Company" (as defined by the ISM Code) shall comply with the requirements of the ISM Code. Upon request the Owners shall provide a copy of the relevant Document of Compliance (DOC) and Safety Management Certificate (SMC) to the Charterers.

Except as otherwise provided in this Charterparty, loss, damage, expense or delay caused by failure on the part of "the Company" to comply with the ISM Code shall be for the Owners' account.