REGIONAL> Highlights
BIMCO promotes its standard shipbuilding contract in China
By Chen Qide (China Daily)
Updated: 2008-11-04 11:45

The Baltic and International Maritime Conference (BIMCO) hasn't received active respondence from the Chinese shipyards as it expects when it promotes its standard shipbuilding contract in China.

"This is because the contract is partial to shipowners judging from its content," said Dai Yaonan, leader of China Standard Shipbuilding Contract Study Group at the seminar on BIMCO standard shipbuilding contract which was held in Shanghai yesterday.

"Some provisions in the contract might bring risk to shipyards. That's why it hasn't received respondence from Chinese shipbuilders," Dai said.

But BIMCO Counsellor Nils-Gustav Palmgren said at the seminar the new standard form of contract is more clear, more readable and very comprehensive.

"As a standard contract, it should be balanced and acceptable to both sides," said Palmgren.

As the world's largest shipowner organization, BIMCO has an important position and influence in the world's maritime circle. Although John Tsatsas, documentary committee chairman of BIMCO, said the standard shipbuilding contract BIMCO has drawn out is not a law that forces people to accept, it has aroused great concern from the world's maritime circle.

BIMCO has held seminars in Singapore, Britain, Germany, South Korea, China and Japan to help shipyards, shipowners, agents and lawyer offices know more about the contract.

"Doing so aims to seek the market support for the contract," said Soren Larsen, deputy secretary general of BIMCO.

Wang Jun, lawyer from Guangzhou Shipyard International Co Ltd, said it takes time to promote a new standard contract, especially for the BIMCO contract.

"The shipbuilding market will greatly influence the use of the BIMCO contract. If the market is at a low ebb, the contract which is partial to shipowners might be adopted," Wang said.

He called on that China should work out its own standard shipbuilding contract as soon as possible to challenge the BIMCO one.

Dai said it is very urgent for China's shipbuilding industry to create its own standard shipbuilding contract, for developed countries such as Japan, USA and West Europe have already had their own ones.

Chinese shipyards often feel they are in a passive state when they are required to sign contracts with shipowners, because they lack a State-level standard shipbuilding contract, he said.