The first definitive voyage charter party LNGVOY, jointly issued by BIMCO and the International Group of Liquefied Natural Gas Importers (GIIGNL), has been launched with an aim to assist charterers to assess the cost of transporting LNG with a greater degree of accuracy.
Designed for the expanding LNG spot market, the charter party was developed through consultations with the industry globally to gather a clear picture of how an LNG voyage charter party should work in practice, BIMCO said.
“LNGVOY is equitable to both owners and charterers and provides a solid contractual platform for the transportation of LNG in an ever-growing spot market. It enables all parties to handle the costs involved in a more precise way,” Chairman of the LNGVOY drafting group, Rodney Hyne-Jones, formerly of Exmar, said.
According to BIMCO, four main issues inherent in LNG shipping have been addressed for voyage charters, including a “boil-off” cap whereby both owner and charterer agree on a negotiated maximum quantity of boil-off over the voyage, LNG heel at the commencement and completion of the voyage, the condition of the cargo tanks on arrival at the loading port, and the arrival at discharge port.
“This new charter party gives owners and charterers another alternative when deciding on the most appropriate terms for their LNG transportation needs,” Grant Hunter, BIMCO Chief Officer Legal and Contractual Affairs, said.