BIMCO has issued two new standard contracts of affreightment (COA) for dry bulk cargoes – one that can be used with different voyage charter parties and another that includes all terms and provisions usually found in a COA.
The new forms, GENCOA A and B, are intended to be used for dry bulk shipments either as a framework contract with different voyage charter parties for different trades (GENCOA A) or as an “all in one” contract that includes all terms and provisions usually found in a COA (GENCOA B).
“By providing two versions of the form, we are making it easy for users to pick the one that matches their commercial needs,” says Inga Frøysa of Torvald Klaveness, who led the drafting team developing the two new standards.
GENCOA A and B include several standard BIMCO clauses including the Anti-Corruption Clause and the Sanctions Clause. The BIMCO Force Majeure Clause 2022 has also been added with the inclusion of the additional subclauses clarifying the position with respect to laytime/demurrage as well as what should happen if cargo has been loaded on a ship.
“The forms have been drafted as easy-to-use standards reflecting current market practice by taking into account developments in the industry over nearly two decades as well as the political, regulatory and commercial environment faced by the industry,” says Frøysa.
The drafting team also consisted of Capt. Lin Huoping (COSCO Shipping Bulk Co.), Peri Ertugruloglu (Viterra), Mike Queally (ADM), Sasha Patel (Steamship Mutual) and Fulvio Carlini (FONASBA).
The new forms replace the original GENCOA form from 2004 which was published as an “umbrella” agreement with the intention that a voyage charter party should be issued for each voyage.
In addition to optional annexes on ports and rates (Annex A) and requirements for nominated vessels (Annex B), found in both revised versions, GENCOA A includes an Annex C enabling the parties to include the applicable charter party.