Recom m ended Pr incip les

Preamble:

These principles are intended for the use of parties engaged in chartering and ship agency. The Recommended Principles were adopted by BIMCO in 1969 and amended by theExecutive Committee at its meeting held in Nice on 24 November 2005.

The Brokers’ Role:

1. In the conduct of their profession, brokers shall exercise great care to avoid misrepresentation and shall be guided by the principles of honesty and fair dealing.

2. Under no circumstances shall brokers avail themselves of, or make use of, an authority they do not actually hold, nor shall they alter the terms of an authority without theapproval of the principal concerned.

3. Brokers, when requested to do so, shall make it clear to others who wish to make them an offer that they have already received one or several firm offers for the particular orderor ship concerned.

4. Brokers have no authority to quote a ship or a cargo, unless duly authorized by their principals.

5. No brokers shall negotiate for or fix any ship or any cargo on behalf of shipowners or charterers if they have an interest as charterer or shipowner or otherwise as principal,without the fact of such interest being disclosed from the outset to the party concerned.

6. Under no circumstances shall brokers cause the freight to be paid into, or via, another account than that instructed by the shipowners.

Commissions:

7. The commissions due to the brokers shall be paid by the shipowners in accordance with the terms of the charter party, unless the brokers have expressly sanctioned to receivecommission from others. The commissions shall not be retained by either party pending final settlement of accounts or of a dispute in which the brokers have no liability.

Fixtures and subjects:

8. The contracting parties shall identify themselves with full company name, address and communication details (telephone, telefax and e-mail address).

9. All parties shall respect the channel through which a ship or a cargo has been quoted.

10. All parties shall describe honestly the conditions of availability of a ship or cargo, stating to the best of their knowledge whether reservations as to the availability are attachedto the ship or the cargo. In such cases those reservations shall be made clear.

11. The restriction “subject stem” shall only apply to shippers’ and/or suppliers’ agreement to make a cargo available for specified dates. In case stem is not granted, the charterersshall not fix another ship for the cargo before the shipowners of the ship originally fixed have been granted first refusal, provided the amended dates and/or quantities are withinreasonable proximity of the original dates/quantities.

The restriction “subject open” or “subject unfixed” shall only apply when a ship is already under offer, and the “subject open” offer shall be made with the same time limit. Noextension shall be granted and no further negotiation shall take place until the time limit has expired or until both offers have been answered.

Any other “subject……” shall be clear, with a time limit and properly justified.

12. The “details” of a fixture shall consist of all items which are not mentioned in the re-cap.

If a fixture is confirmed, or an offer accepted “subject approval of details” or “subject details” such negotiations shall only be suspended if one party cannot agree and the otherparty maintains one or more of such “details”. The above proviso cannot be taken as an excuse to break off negotiations for some other reason.

Agency:

13. The duty of the ship’s agents is to protect the ship’s interests at all times. This includes ensuring a fast turnaround of the ship at lowest possible expense.

Shipowners shall have full liberty to select and appoint their own agents at ports of loading and discharging to look after the business of their ships and assist their masters.

If, however, a ship under a charter party is consigned to agents nominated by charterers, the agents so appointed shall perform all the normal services to the ship and its master asif the agents had been appointed directly by the shipowners. The agents shall only charge the normal fee for their work, and such fees shall not exceed what would have beencharged under a direct appointment by the shipowners.

14. Agents appointed by time charterers shall perform all the normal services to the ship and its master as would have been performed if the ship called under a voyage charterand the agents were appointed by the owners. All normal agency fees for ordinary agency services shall be charged against the time charterers.

15. The agency fee shall be expressly agreed to by the shipowners.

Recommended Principles - BIMCO https://www.bimco.org/Members/Chartering/Recommended_Principles...

1 of 1 4/27/2010 5:42 PM