Interclub Agreement

The new “security provision” is contained in Clause 9 of this 2011 Agreement. (10) This agreement is governed by English law and the exclusive jurisdiction of english courts, unless it is included in the chartering part (or the settlement of cargo claims under the charterer is subject to this agreement), in which case it is subject to the laws and rules of jurisdiction of the charter party. Under this new provision, as soon as one of the parties to a charter party has established a guarantee for a right to freight, provided that the deadlines set out in Clause 6 of the agreement have been met, the right to guarantee is based on reciprocity. As the new agreement will come into effect on September 1, 2011, we recommend that you include it in all NYPE and Asbatime charter lots. The Inter-Club Agreement, also known as the ICA, came into force for the first time on 20 February 1970. This original version was revised first in 1984 and then again in 1996. Currently, the latest version of the ICA 2011. The ICA was originally formulated by the International Group of P-I Clubs (“IG”) as an agreement between IG clubs, as they recommend to their members to settle freight claims between owners and charterers registered in IG Clubs. Once admitted to a charter party, the ICA becomes an agreement between the parties, not their respective clubs. It was designed to offer a simple mechanism for the allocation of freight rights between owners and charterers, and was intended with the New York Produce Exchange (NYPE) and Asbatime Form Charterparties will be used. It is likely that any future changes to the inter-club agreement will take this arbitration decision into account.

However, there does not appear to be a substitute for periodic updating of each end of a charter party and bill of lading when a potential or actual freight right arises, particularly when one of the parties to a charter chain grants extensions of time to assert rights to the interests of the freight. Comments: In order for a right to be recovered under the ICA, the underlying rights must have been invoked in the context of a transport contract that was authorized after the charter holiday, i.e. a letter of car issued under the charter part was not issued in this manner in violation of the conditions of the charter party in power. The term “transportation contract” is very broad and, therefore, ICA rights can arise under all types of transport contract, including car letters, shipping letters, chartered lots or even under-chartered parts. Considering that the ICA is a commercial agreement, courts often do not consider that a reference law has not been issued in accordance with the terms of the C/P and that it is as such “unautorized” for the purposes of the ICA – see London Arbitration 3/13. Comments: While it is primarily a matter of using this chartered part, the parties may, if they wish, incorporate into other forms of chartering by the agreement. However, this should be done with caution, as not all charter forms are compatible and there may be disagreements. “P-I Club/Cargo Ansprich ” …

Responsibility for cargo claims between charterers and owners will be distributed and settled in accordance with Interclub New York Produce`s 1996 exchange agreement and subsequent amendments. It can be expected that, as a result of this attribution, in which the text of the charter clauses is not clear or open to language close to interpretation, the right to counter-security may become a topic of discussion.