BIMCO and GIIGNL launch voyage charter party for LNG spot market

BIMCO and the International Group of LNG Importers (GIIGNL) have jointly launched LNGVOY, the first voyage charter party designed for the LNG spot market, aiming to allow the charterer to assess with more accuracy the cost of transporting cargoes from A to B and, where this applies, to C.

The release of LNGVOY follows seven years of industry consultations to reflect the interests of both owners and charterers.  It addresses four issues inherent in LNG shipping for voyage charters:

• A boil-off cap under which both owner and charterer agree on a negotiated maximum quantity of boil-off over the voyage. Where the cap is exceeded, the parties agree to apply a compensation structure, subject to limited exceptions;
• LNG Heel at the commencement and completion of the voyage – it was considered that legal title or ownership to the heel should remain with the owner throughout the charter and that there would be a balancing payment between the quantities remaining on board, again, at the commencement and completion of the voyage. This avoids problems with administration and bills of lading and so on;
• Presentation: the condition of the cargo tanks on arrival at the loading port is now covered. The costs involved can be handled adequately under a voyage charter as opposed to a time charter trip covering the three potential conditions:
  •  cooled down ready to load;
  •  warm under natural gas vapour;
  • warm and inerted;
• Arrival at discharge port – given the nature of the cargo, scheduling of arrival times at discharge carries great importance and delays can be very costly. As a result, most voyages have a specific delivery window and risks of delay and ensuing boil-off have been allocated.

Chairman of the LNGVOY drafting group, Rodney Hyne-Jones, formerly of Exmar, 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.”

article & photo source: http://www.lngworldshipping.com/news/view,bimco-and-giignl-launch-voyage-charter-party-for-lng-spot-market_42480.htm