The security situation in the Middle East and particularly the Strait of Hormuz continues to create significant uncertainty for shipowners, charterers, and operators. Escalating geopolitical tensions, missile and drone threats, and the potential designation of the area as a war risk zone raise difficult questions regarding routing decisions, crew safety, insurance cover, and contractual obligations.
This BIMCO 180 seminar provides a practical overview of how the BIMCO War Risk Clauses operate when vessels trade in high-risk areas such as the Gulf region. It then examines the commercial and contractual consequences under voyage and time chartering, focusing on delays, deviation, and cost allocation.
Participants will gain a clearer understanding of how to manage operational decisions and contractual risk when vessels are ordered to trade in or near the Strait of Hormuz.
Discounts
10% group discount is available for registering 3 or more participants from the same company.
What will you learn?
Day 1: BIMCO War Risk Clauses (90 minutes)
1. Security situation in the Gulf region
This session provides an overview of the current security situation in the Gulf region and the strategic importance of the Strait of Hormuz for global energy and commodity flows. Participants will discuss the types of threats that have affected merchant shipping in recent years, including missile and drone attacks, the seizure or detention of vessels, mining incidents and other naval confrontations, as well as the potential impact these developments may have on commercial shipping routes and trading patterns.
2. Insurance and war risk areas
This session introduces the insurance framework that underpins many commercial decisions when vessels trade in high-risk regions. The discussion will explain how war risk zones and premium areas are designated, the role of additional premiums (APs), and how war risk insurance interacts with the contractual rights and obligations set out in charter parties.
3. Overview of BIMCO War Risk Clauses
This session provides an overview of the principal BIMCO war risk clauses used in modern charter parties, including the BIMCO War Risks Clause for Time Charter Parties 2025, the BIMCO War Risks Clause for Voyage Charter Parties 2025, CONWARTIME 2025, and VOYWAR 2025. The discussion will focus on key legal concepts embedded in these clauses, including the definition of War Risks, the “reasonable judgment” test applied by masters and owners, the owners’ right to refuse orders exposing the vessel to war risks, the possibility of alternative routing, and how these rights interact with charterers’ employment orders.
4. Operational decision-making
The final session examines how war risk clauses are applied in practice when operational decisions must be taken. Participants will discuss whether owners may refuse a transit through areas such as the Strait of Hormuz, what may constitute a “dangerous area” under the clauses, and the practical considerations faced by operators and masters when implementing these provisions, including the importance of communication between owners, charterers and insurers.
Day 2: Charter party Consequences: Delay, Deviation and Cost Allocation (90 minutes)
1. Operational disruptions in high-risk areas
This session examines the practical operational consequences that vessels may face when trading in areas exposed to heightened security risks. The discussion will consider measures such as naval convoy requirements, waiting times for military escorts, longer routing to avoid risk zones, and delays caused by inspections or additional security procedures, and how these factors can affect voyage planning and commercial performance.
2. Voyage charter implications
This session explores how war-related disruptions interact with the legal framework of voyage charters, using GENCON as a reference point. The discussion will address whether owners may deviate to avoid war risk areas, how such deviation may affect freight and laytime calculations, how waiting time may be treated under the charter, and how these issues interact with safe port and safe route obligations.
3. Time charter implications
Using NYPE as the typical contractual framework, this session considers how war risks affect the allocation of rights and responsibilities between owners and charterers. The discussion will focus on charterers’ employment orders in situations involving unsafe voyages, the owners’ right to refuse such orders, potential off-hire implications, the allocation of additional war risk premiums, and commercial issues such as deviation and extra bunker consumption.
4. Cost allocation in practice
The final session looks at how the additional costs associated with war risks are allocated in practice. Participants will discuss typical cost elements such as war risk insurance premiums, crew bonuses, additional bunkers resulting from rerouting, enhanced security measures, and delay costs, and how these expenses may ultimately be distributed between the contractual parties.
Starting time (for both sessions 1 and 2)
09:00 UTC
10:00 CET
See the time in your local time zone.
Course format
BIMCO 180 seminars comprise two 90-minute live online sessions delivered by experienced BIMCO trainers.
The format combines presentations, practical examples, discussion, and interactive exercises to enable participants to translate theory into practice.
Participants will receive electronic course materials after the seminar.
