BIMCO updating Infectious or Contagious Diseases Clauses to address pandemics

BIMCO’s IOCD clauses (Infectious or Contagious Diseases Clauses) are being updated as a result of the Covid-19 pandemic.

The current clauses were written at the time of the Ebola outbreak, and are a generic contractual solution that protect ship owners’ crew against the infection and the consequences to the ship when trading infectious areas.  However, under Covid-19, which has global impacts, not only do crews need to be protected from infection, but also owners and charterers protected from costs and delays to vessels under time and charter parties.

The new clauses will have a generic application, that apply to both epidemics and pandemics, rather than specific Covid-19 clauses.  BIMCO state “The clauses attempt to balance the health and welfare of the crew against the commercial interest of the parties and the fulfilment of obligations under the underlying sale contracts to transport and deliver the cargo.”

More can be read on BIMCO’s website.