December 13, 2020

Nype Interclub Agreement 2011

Filed under: Uncategorized — dpk3000 @ 9:15 pm

The International Group recommends that the 2011 agreement apply to all lots and rights of the NYPE/Asbatime charter resulting from these lots, when they are concluded, and that they include the 2011 agreement or any other version of the Inter-Club New York Produce Exchange Agreement. Gard recommends that members and customers integrate the ICA in 2011 into the NYPE and ASBATIME charter parties. The objective of the ICA is to promote adequate settlement and reduce costs by avoiding costly litigation in the handling of freight applications. In this case, the Tribunal found that the decision did not compromise the intent of the ICA, since the main objective, namely the rapid allocation of liability for cargo claims, was not affected. However, one of the main objectives of the 2011 ICA review was to ensure that parties to a freight application could protect themselves from their contractual partners without difficulty. Gard`s experience is that the security mechanism normally works smoothly and is a necessary element to protect members from counterparty failures, whether in the event of insolvency or avoiding counts. “Freight claims between owners and charterers are fully regulated, secured, shared and paid in accordance with the provisions of the Inter-Club New York Produce Exchange Agreement 1996 (as amended in 2011) or subsequently amended or replaced. This clause prevails over all other clauses or clauses of this charter party that purport to include any other version of the Inter-Club New York Produce Exchange Agreement in this charter party.┬áIn order to promote the application and inclusion of the 2011 agreement in all NYPE/Asbatime charter parties, the International Group of P-I Clubs has developed a “Cargo Claims” charter clause that provides that the new agreement will come into force on September 1, 2011, we recommend that it be included in all parts of the NYPE and Asbatime charter in the future. 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. The NYPE 2015 Charterparty contains a similar clause that also promotes the application and use of the 2011 agreement and is equally acceptable. The new “security provision” is contained in Clause 9 of this 2011 agreement. However, a recent arbitration proceeding in London raised concerns within the International Group, as the court found that the charter clause contained only the liability provisions of the ICA and not the guarantee obligation provided for in point 9 of the 2011 agreement. In order to encourage the application and integration of the 2011 agreement to all NYPE/Asbatime charter lots, the circular issued in May 2016 referred members to a recommended charter party clause, developed by the International Group of P-I Clubs.

The owners demanded a counter-guarantee from their charterers for a claim they had invoked with the principal owners, in accordance with Article 9 of the 2011 Inter-Club Agreement (ICA). The charter portion, an amended form from NYPE 1946, contained a clause that states: ” (l) iability for cargo claims, as between Charterers and Owners, is portioned/settled as specified by the Interclub New York Produce Exchange Agreement effective from 1996 and its subsequent subs amendment.” As a result, the International Group amended the wording of the recommended Charter clause, adopted in 2016, to reflect this recent conclusion and to end the 2011 security requirement.