Rebalance of Interests between Shipowners and Charterers from the Perspective of GENCON Contract Revision

Abstract

As a commonly used standard contract model in the field of voyage chartering, the GENCON Contract has undergone three revisions. GENCON 2022 is the latest revised version, which modifies the vague expressions in GENCON 1994 and incorporates commonly used clauses in practice, which is more in line with the principle of fairness and compromise on the interests of the charterer. However, it still tends to protect the interests of the shipowner. The emergence of GENCON 2022 means that the interests of shipowners and charterers will face new risks and challenges. This article will study the new adjustments made by GENCON 2022 clauses to the rights and obligations of both parties by comparing with the previously commonly used GENCON 1994, in order to help shipowners and charterers clarify the content and revision logic of various clauses of GENCON 2022 before signing the contract, and strive for favorable clause protection for themselves, so that the originally “unequal” interest tendency can become a more reasonable “balance”. In order to further promote the rebalancing of interests between shipowners and charterers, China should also make efforts at the legislative, judicial, and social levels to promote the orderly development of the shipping industry.