Six months have passed since BIMCO introduced SHIPMAN 2024, the latest update to its standard ship management agreement. Building on revisions from 1998 and 2009, SHIPMAN 2024 reflects modern industry practices and evolving regulatory demands. Below, we outline the key changes and assess how the maritime industry has responded to the revised standard.
Key Changes in SHIPMAN 2024
Management Fees
SHIPMAN 2024 introduces a revised fee structure that includes:
- Annual management fee
- Pre-delivery management fee to cover services provided before vessel handover.
If no pre-delivery fee is explicitly agreed upon, it defaults to one-twelfth of the annual management fee. This ensures managers are compensated for pre-delivery services, improving transparency.
EU Emissions Trading Scheme (Clause 10)
The inclusion of the ETS SHIPMAN Emission Trading Scheme Allowances Clause 2023 addresses the maritime sector’s integration into the EU Emissions Trading Scheme. The clause defines the manager’s role in handling Emission Scheme Management Services and specifies a separate fee for these activities, aligning with increasing environmental regulations.
Change of Control (Clause 18)
A new provision allows either party to terminate the agreement with one month's notice if a change of control occurs. This is defined as a transfer of 50% or more of direct or indirect ownership. Written notice must be given 15 days before the change, and silence is deemed consent. This clause enhances security and flexibility for both parties, especially in compliance-sensitive situations.
Personal Data Protection (Clause 26)
SHIPMAN 2024 introduces a data protection clause, mandating compliance with regulations like GDPR. This clause covers the collection, use, safeguarding, transfer, and retention of personal data, addressing the growing importance of privacy and data security in ship management.
Cyber Security (Clause 27)
Updating BIMCO’s 2019 Cyber Security Clause, SHIPMAN 2024 requires both parties to implement measures to protect digital systems and respond effectively to cyber incidents. Notifications of breaches must be prompt, facilitating rapid responses to mitigate risks in a sector increasingly targeted by cyber threats.
Sanctions (Clause 28)
A strengthened sanctions clause ensures neither party nor their subcontractors are sanctioned entities. Owners warrant that neither they nor the vessel are subject to sanctions, while managers make the same assurances regarding subcontractors. Breaches allow termination of the agreement and claims for indemnification, providing a robust framework for managing sanctions risks.
Industry reception
The previous version, SHIPMAN 2009, remains widely used, with many companies adapting it to their needs over the years. However, SHIPMAN 2024 has been positively received as a timely update.
The new agreement addresses common issues that previously required rider clauses, simplifying the negotiation process. With SHIPMAN 2024, companies can focus on commercial terms while ensuring key regulatory requirements, such as those for GDPR, sanctions, and emissions trading, are met.
As the industry transitions to SHIPMAN 2024, the agreement provides a practical, up-to-date framework for ship management, balancing regulatory compliance with operational efficiency.