What is the Multiparty Agreement (BIMCO) and the updated Standard Container Leasing Agreement? Why is it important?

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What is the Standard Container Leasing Agreement and why is it important?

The BIMCO Terms that have governed leasing transactions on xChange so far were introduced in 2016 and have not been updated since. In the thousands of leasing transactions that have been accepted since, we have learned that some rules are missing (e.g. cancellations or storage rules) and some rules need to be changed to cover more of the edge or special cases that can happen in a leasing transaction. 

To ensure that suppliers and users have a safer and frictionless experience, we are now updating the terms. From the 21st of September, 2023, 00:00 CEST - All leasing transactions that are accepted from that point onwards will be governed by the new Standard Container Leasing Agreement. Leasing transactions accepted previously will still be governed by the BIMCO Boxchange agreement.

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What is the Multiparty Agreement (BIMCO)?

The Multiparty Agreement (Part 1 | Part 2) was the contractual basis for all one-way lease transactions on xChange.

The Agreement was developed jointly with The Baltic and International Maritime Council ('BIMCO') and ensures maximum neutrality between container owner and user. BIMCO is the largest international shipping association - with their membership representing 60% of the world cargo fleet. They provide many key contracts and clauses with regards to shipping.

It regulates many key factors such as: how per diem charges are calculated, who is liable for the condition of the equipment, who pays depot handling fees (the container owner), and what happens in case of disputes. 

All xChange lease members can add their preferred standard terms (e.g. per diems for specific container types) onto the agreement before signing. These terms will then be pre-filled into every deal on xChange--but of course, they can be negotiated on a deal-by-deal basis.

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