The first, in May , was referred to in "Sea Venture" Vol. In September , the Agreement underwent a more substantial revision as outlined in Club Circular B. The most recent amendments to the Agreement result from the need to up-date the Agreement to keep pace with changes in the Shipping Industry, particularly the growth in containerisation. The decision of the English High Court in the "Holstencruiser" highlighted the fact that the existing Inter-Club Agreement did not enable an apportionment of responsibility for cargo claims to be satisfactorily achieved in respect of containerised cargo.

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The charterparties between Head Owners, Disponent Owners and Charterers were said to have been on essentially back-to-back terms. Following a threat of arrest, the Club for Head Owners provided security in the form of a letter of undertaking. The Head Owners demanded that Disponent Owners provide counter-security pursuant to clause 9 of the ICA which they considered to be incorporated into the charterparty.

The award Disponent Owners commenced arbitration proceedings seeking an order for specific performance requiring Charterers to provide counter-security in the form of a Club letter or undertaking, alternatively a first class bank guarantee or payment into escrow. The Charterers argued that the wording of clause 35 did not incorporate the full text of the ICA This would not include the security provisions.

Owners argued that the terms clearly intended to incorporate the full terms of the ICA with regard to liability for cargo claims. The Tribunal agreed with Charterers that as a matter of strict construction the charterparty only incorporated those parts of the ICA that related to apportionment and settlement of cargo claims.

The wording of clause 35 was clearly restrictive and did not make provision for security for claims. Without express wording incorporating the full terms of the ICA, its full incorporation could be not assumed.

Accordingly clause 9 of the ICA did not apply to the charterparty and Charterers were not obliged to provide security. It is understood that Owners sought permission to appeal to the High Court but this has been refused. Amended International Group Recommended Charterparty Clause As a result of this decision the International Group took the opportunity to consider their recommended charterparty clause wording for incorporation of the ICA, to ensure this encompasses the requirement for security to be provided See Steamship Mutual Circular L — IG — Claims co-operation.


Inter-Club Agreement (as amended 1 September 2011)

Although the wording is not clear in that respect, in "THE HOLSTENCRUISER" the court decided that the Agreement only applied to cargo claims brought under a bill or bills of lading as opposed, for example, to cases where although the cargo was "carried" under a bill of lading, the cargo claim was brought under a charterparty. Under the form the Agreement will continue to apply where the cargo claim is brought under a bill or bills of lading, and the wording has been amended to reflect the fact that the claim must be brought under such document s. However, the Agreement will also apply where the claim is made under a document other than a bill of lading. Application has been extended to claims made under contracts of carriage of whatever form10, provided such contracts are authorised under the charterparty. In addition, although the relevant contract of carriage must still incorporate the Hague or Hague-Visby Rules or terms no less favourable, the Agreement will also be applicable where the contract incorporates the Hamburg Rules or any national law giving effect thereto, where these Rules are compulsorily applicable by operation of law to the contract of carriage.


Inter-Club Agreement - Comparison Between 1984 and 1996 Forms

This Agreement replaces the Inter-Club Agreement in respect of all charterparties specified in Clause 1 hereof and shall continue in force until varied or terminated. After the expiry of such notice, the Agreement shall nevertheless continue as between all the Clubs, other than the Club giving such notice who shall remain bound by and be entitled to the benefit of this Agreement in respect of all cargo claims arising out of charterparties commenced prior to the expiration of such notice. The Clubs will recommend to their Members without qualification that their Members adopt this Agreement for the purpose of apportioning liability for claims in respect of cargo which arise under, out of or in connection with all charterparties on the New York Produce Exchange Form or or Asbatime Form or any subsequent amendment of such forms , whether or not this Agreement has been incorporated into such charterparties. Scope of application 1 This Agreement applies to any charterparty which is entered into after the date hereof on the New York Produce Exchange Form or or Asbatime Form or any subsequent amendment of such forms. A material amendment is one which makes the liability, as between owners and charterers, for cargo claims clear. In particular, it is agreed solely for the purposes of this Agreement: i that the addition of the words "and responsibility" in Clause 8 of the New York Produce Exchange Form or or Clause 8 of the Asbatime Form , or any similar amendment of the charterparty making the Master responsible for cargo handling, is not a material amendment; and ii that if the words "cargo claims" are added to the second sentence of Clause 26 of the New York Produce Exchange Form or or Clause 25 of the Asbatime Form , apportionment under this Agreement shall not be applied under any circumstances even if the charterparty is made subject to the terms of this Agreement; and c the claim has been properly settled or compromised and paid.


The Inter-Club New York Produce Exchange Agreement 1996



Inter-Club Agreement: the Right to Counter Security


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