Tuesday, June 24, 2025

Pests at Port? Not on My Watch!” – Understanding the FSMC Clause in Charter Parties

 πŸ›πŸš’ “Pests at Port? Not on My Watch!” – Understanding the FSMC Clause in Charter Parties

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3 Questions to Spark Your Thinking

  1. Is your vessel truly pest-free before delivery to a new charterer?
  2. Could a moth infestation delay your port clearance or lead to fines?
  3. Do you know the certification requirement if you’ve traded to FSMC-affected regions?

 

🧐 Clause Breakdown: BIMCO Flighted Spongy Moth Complex Clause (2023)

The Flighted Spongy Moth Complex (FSMC) Clause is BIMCO’s proactive measure to combat biosecurity risks posed by invasive moth species during global trade — particularly when delivering a vessel under a time charter.

πŸ” What Does the Clause Say?

Key Points:

  • Owners must deliver the vessel free from FSMC.
  • If the vessel has visited FSMC-affected areas within the past 24 months, they must produce an FSMC-Free Certificate from a recognized body.
  • The certificate must be dated on or after the vessel’s departure from the affected region.

🌍 Why Does This Matter?

The FSMC — a pest especially prevalent in East Asia and parts of North America — poses serious environmental risks to local ecosystems. Port states like Canada, USA, Australia, and New Zealand are extremely strict about quarantine measures.

Without proof of cleanliness:

  • Port entry may be denied
  • Delays and fines can be imposed
  • Charterer may claim breach if the clause is violated

 

⚠️ Examples, Pitfalls & Industry Relevance

πŸ”§ Operational Example:

A vessel calls Dalian, China (a known FSMC risk area) in June 2023. Now, in June 2025, the vessel is delivered under a new charter. An FSMC-Free Certificate is required, dated from the last departure from Dalian.

πŸ’₯ Common Pitfalls:

  • Presenting outdated or non-authorized certificates
  • Ignoring the 24-month lookback period
  • Charterers assuming cleanliness without explicit documentation

πŸ“š BIMCO's Guidance:

BIMCO recommends that Owners coordinate with recognized inspection bodies before delivery. This is in line with IMO and national biosecurity protocols, particularly for the U.S. and Australia.

 

Actionable Steps for Stakeholders

πŸ‘©‍✈️ For Ship Operators/Owners:

  • Keep a log of previous port calls over the last 2 years
  • Identify if any were in FSMC-risk areas (like China, Korea, Russia’s Far East)
  • Obtain a valid FSMC-Free Certificate prior to delivery
  • Coordinate with certified pest inspection agencies timely

πŸ§‘‍πŸ’Ό For Charterers/Managers:

  • Request the certificate before taking delivery
  • Cross-check certificate date and issuing authority
  • Include FSMC clause compliance in your pre-delivery checklist

 

🧭 Conclusion: Small Pest, Big Problem

This clause may seem simple, but its implications are critical. A small oversight can cause major delays, impact your P&L, and damage relationships. FSMC compliance is not just regulatory — it's professional responsibility.

 

πŸ“£ Call to Action

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πŸ“Œ Disclaimer

This blog is intended for informational purposes only and does not constitute legal advice. Always consult your legal advisors, P&I Clubs, or BIMCO publications for charter party compliance and risk assessment.

 

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