ALARMED by the string of cyberattacks targeting Maersk, Cosco and shipbroker Clarksons, shipping association BIMCO has taken the initiative to draft a cyber security clause that can be included in charter party agreements and other contracts once it is published in May 2019
ALARMED by the string of cyberattacks targeting Maersk, Cosco and shipbroker Clarksons, shipping association BIMCO has taken the initiative to draft a cyber security clause that can be included in charter party agreements and other contracts once it is published in May 2019. BIMCO's cyber security clause will require parties to the contract to have 'plans and procedures in place to protect its computer systems and data, and to be able to respond quickly and efficiently to a cyber incident,' reports London's Loadstar.
'Mitigating the effect of a cyber security breach is of paramount importance. The clause requires the affected party to notify the other party quickly, so that they can take the necessary counter-measures,' said BIMCO.
The association added that the cyber clause was intended for inclusion in a wide range of contracts, meaning it can also cover arrangements with service providers, such as brokers and agents.
It will stipulate that, in the absence of an amount agreed during negotiations, the claims liability of each party to the contract will be capped at US$100,000.
BIMCO said the clause would serve two vital functions: raise awareness about the risks present in cyberspace; and provide a mechanism for ensuring that parties to the contracts have systems and processes set up to help minimise the risk of an attack, but if one does happen, to 'mitigate the effects of such an incident.'
The clause is being drafted by a small team led by chief legal and compliance officer Inga Froysa of Olso-based shipping group Klaveness in association with other firms, including the UK P&I Club.
Shipbrokers have welcomed the BIMCO cyber security clause. One broker was cited in the report as saying that it was 'long overdue' and another said the attack on Clarksons in November last year had 'focused the industry' on the need to protect itself.
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