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BIMCO and FONASBA launch new general agency agreement

BIMCO and FONASBA launch new general agency agreement

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BIMCO, the world’s largest international shipowners’ association, and FONASBA, the worldwide organisation representing shipbrokers and ship agents, have joined forces to create and launch a new general agency agreement for port agents, shipowners and ship operators contracting port agency services.

The new standard contract, which can be downloaded from the FONASBA website and BIMCO’s IDEA, formalises and sets out clear terms for any agreements made, for the benefit of both sides. Drawn up by the group responsible for drafting the Agency Appointment Agreement which was released earlier this year, the new contract is easy to use and can readily be adapted for single use or a long-term contract.

Parties can select their requirements from a list of functions such as sales and marketing, port or general agency and husbandry and can agree other services to suit their needs. The agreement covers the parties’ obligations for remuneration, insurance, liability, termination, confidentiality and dispute resolution.

“Managing ships has become much more complex, with many more parties involved, and as a result knowing who your exact counterpart is, can be difficult. This creates more room for disagreements or simple mistakes.

“But this new standard contract creates a solid agreement, allowing agents and operators to focus on core activities, build stronger relations and not worry about potential disputes or legal issues,” said Fulvio Carlini, chairman of FONASBA’s chartering and documentary committee.

Up until now, shipowners and agents have not always had formal contracts. Some relationships have worked well for decades without contracts, but as soon as a dispute arises about payments or terms, the agent is typically at a disadvantage.

BIMCO has seen an increase in calls from its agent members in recent years as agreements and the number of parties involved have become more complicated, with agents often seeking advice because of a dispute.

“Disputes cost time and money, and we hope this new agency representation contract will facilitate smoother working practices and help to prevent disagreements between operators and agents across the industry,” said Francis Sarre, chairman of BIMCO’s documentary committee.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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