This is great news. BIMCO is the largest shipping association out there, and with it’s large membership pool, it has some pull. So when they come up with a standard contract for armed guards on boats, then that helps to create a single standard that all of the companies, lawyers and insurance providers can work from. This is important, because with a standard like this there is no guess work. Either your company meets the standard, or it does not. A standardized contract also helps to mitigate the principal agent problem, and it is a means to protect the interest of both parties.
As to commentary on the GUARDCON Contract, I would head over to Close Protection World’s Maritime Security Forum. The guys are already discussing it and it’s possible impact on the industry.
On a side note, it is interesting to me that a NGO like BIMCO has the ability to determine the appropriate rules for the use of force, and basically guide all of their members to use those rules. I am used to countries and their military leaders dictating what the appropriate rules are, just because they have the monopoly on the use of force throughout the world. In this case, a NGO is now dictating that. What an odd set of circumstances… –Matt
Copies and Information about GUARDCON Contract here.
BIMCO publishes much anticipated GUARDCON Contract
March 28, 2012
BIMCO is pleased to announce the publication of the GUARDCON standard contract for the employment of security guards on vessels. This brand new contract has been developed to provide ship owners and private maritime security companies (PMSC) with a clearly worded and comprehensive standard contract to govern the employment and use of security guards, with or without firearms, on board merchant vessels. While BIMCO would not like to see the use of armed security guards on ships becoming institutionalised, it recognises that while the industry awaits a more permanent long term solution, armed guards currently provide an effective deterrent to piracy attacks.
BIMCO’s Chief Officer Legal and Contractual Affairs, Grant Hunter said “In response to ship owners’ increasing demand for security services, an ever growing number of private maritime security companies have entered the market to meet that demand. In the absence of a standard contract for these services, ship owners and their P&I Clubs are currently faced with the difficult and time consuming task of assessing large numbers of contracts from these security companies, all with varying terms and conditions.