The Inter-Club Agreement (ICA) first came into force on 20 February It was revised in , in. and again in See 24 August , Standard. Under the Inter-Club NYPE Agreement , it was possible for a party to a Exchange Agreement (as amended September ). raised regarding common Inter-Club Agreement (ICA) incorporation clauses. The recent decision of the Commercial Court in the “Genius Star 1” [].

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Inter-Club New York Produce Exchange Agreement (As Amended September )

The tribunal found that a commonly used clause in charterparties which provided that liability in respect of cargo claims was to be apportioned as specified by the ICA was not sufficient to also incorporate the provisions of the ICA relating to the provision of security and counter-security. Thomas Miller Group Website. The first in was to meet one particular shortcoming relating to the time limit for making claims. When the disponent owners sought counter-security from their own charterers, this was denied on the basis that the charterparty clause was not apt to also incorporate the provisions of the ICA relating to the provision of security.

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Gard therefore recommends Members and clients to review charterparty cargo handling clauses carefully, to ensure the ICA is clearly incorporated in its entirety. Web design agency – Liquid Light.

Apportionment of liability under the Inter Club Agreement: secure to be secured? It depends

Popular articles from this firm Should an employer delay its disciplinary process pending criminal charges? As the new agreement takes effect from 1st Septemberwe recommend its incorporation into all NYPE and Asbatime charterparties going forward.

However, one of the main purposes of the ICA revision was to ensure the parties to a cargo claim would be able to secure themselves against their contractual counterparts without unnecessary difficulty. The arbitrators arrived to the conclusion that specific words of incorporation would be required to incorporate the entire ICA in the charterparty and that in the absence of such words, certain provisions of the ICA would not be applicable.


Please contact customerservices lexology. On the other hand, the disponent owners argued that the relevant clause made it clear that the full terms of the ICA applied in respect of liability for cargo claims and therefore the entire relevant provisions were incorporated including those relating to provision of security. As will be seen, it has also been necessary to make a number of additional consequential but not substantive amendments to the Agreement. Head owners chartered their vessel to the claimant disponent owners who, in turn, chartered to the respondent charterers.

Inter-Club Agreement (as amended 1 September ) – UK P&I

Login Register Follow on Twitter Search. However, a recent London arbitration finding has given the International Group cause for concern, with the tribunal finding that the charterparty clause only incorporated the liability provisions of the ICA and not the requirement to provide security as contained in clause 9 211 the Agreement.

It took the form of re-arranging the text in a more logical way and:. Members who need to advise the Club of updates to their recorded ships’ details should advise their usual underwriting contact. In turn, the disponent owners provided counter security to the head owners on the basis of Clause 9 of the ICA which provides a reciprocal obligation for provision of security by a party to a charterparty once security in interclb of a cargo claim is provided by its counter-party.

The charterers refused to provide security to owners on the basis that the wording of the charterparty clause restricted the application of the ICA to address only liabilityapportionment and settlement of cargo claims, not provision of security. If you continue to use our site without changing your settings, we will assume that you are consenting to our use of cookies.

Instead, only the provisions relating to the apportionment of liability were effectively incorporated. The Group has therefore taken a decision to incorporate a new provision into the Agreement, which creates an entitlement to agteement on the basis of ibterclub, once one of the inteeclub to a charterparty has put up security in respect of a Cargo Claim, provided that the time limits set out in clause 6 of the Agreement have been complied with the Security Agrwement.


Accordingly in the absence of payment, no accrued cause of action crystallises and there is therefore no right, prior to payment, for the party sued in respect of a Cargo Claim to require that the other party to the charterparty, provide security which could be sought, by, for example, arresting or threatening to arrest a vessel agrement other property.

The tribunal in this case considered that the decision did not undermine the intent of the ICA because the main purpose, swift apportionment of liability for cargo claims, was not affected. Both charterparties included the following wording:. Our Club, in common with the other Group clubs is issuing a circular to inform Members of this change. This agreemenr because the relevant wording is commonly used in fixtures and some parties including their liability insurers may be caught by surprise if they realise that there is a risk that some provisions of the ICA are not applicable.

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Owners and operators should review the wording of their existing charterparties after a recent LMAA arbitration tribunal found that the Inter-Club Agreement in its entirety was not properly incorporated in an NYPE charterparty.

Share Facebook Twitter Linked In. Follow Please login to follow content. In the meantime, Members or clients having any questions or requiring assistance are agrwement to contact Gard.

Incorporation of 2011 Inter-Club Agreement in charterparties

All member Clubs of the International Group have issued a similar circular. Register now for your free, tailored, daily legal newsfeed service. The Security Provision has been incorporated into the Agreement as clause 9.

The Group believes that this situation is unsatisfactory and has led to unnecessary, wasteful and costly disputes between Clubs.