The Inter-Club Agreement (ICA) was formulated in in order to promote amicable and equitable settlements for cargo claims under the. The Inter-Club Agreement (ICA) first came into force on 20 February It was revised in , in. and again in See 24 August , Standard. CIRCULAR REF: / CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS. The Inter-Club New York Produce Exchange Agreement, which.

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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.

Since many charterparties are subject to English law and jurisdiction, it is likely that English law will be relevant in the majority of cases. Claims in fact arising out of error or fault in navigation or management of the vessel, are to be apportioned per cent to owners. Condensation resulting from something other than improper ventilation or bad stowage where there is not irrefutable evidence that the claim arose out of the act or neglect of Charterers, their servants or sub-contractors.

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We’ve updated our Cookies Policy. Thomas Miller Group Website. All other claims whatsoever including claims for delay to cargo where there is irrefutable evidence that the claim arose out of the act or negligence of Owners, their servants or sub-contractors.

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However, if condensation resulted otherwise than from improper ventilation, liability was apportioned equally between owners and charterers, unless the condensation arose from poor stowage. The ICA, since its inception, has been amended on two occasions.

The ICA gives one example of such a material amendment: However, as we describe below, for claims arising from cargo handling the apportionment formula maintains a distinction between cases in which Clause 8 has been amended to include the words “and responsibility” or has otherwise been amended to make the Master responsible for cargo handling and those cases in which Clause 8 has no such amendment. In a claim to which Hague or Hague-Visby Rules apply, cargo claimants should be defeated by the contractual carrier under the contract of carriage, if the claim arises by virtue of negligent navigation interflub management and so there should be no claim to pass on under the ICA.

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 agremeent sought, by, for example, arresting or threatening to arrest a vessel or other property. All other claims whatsoever including claims for delay to cargo where there is not irrefutable evidence that the claim arose out of the act or neglect of one party or the other including its servants or sub-contractors.


In addition, it was thought that the provision of two apportionment formulae was quite confusing, so there were intfrclub to amalgamate them into one, without affecting the division of liability as established in the form. The point for determination It was common ground that liability as between owners and charterers for the cargo claim was to be apportioned in accordance with clause 8 d of the ICA which had been incorporated into the charter.

This seemed to conflict with the intention behind the Agfeement. It is understood that no Club has ever withdrawn from the ICA. The apportionment 7 The amount of any cargo claim to be apportioned under this Agreement shall be the amount in fact borne by the party to the charterparty seeking apportionment, regardless of whether that claim may be or has been apportioned by application of this Agreement to another charterparty.

Apportionment under each form should be as per Table IV, based on English law. The form makes clear that the Agreement applies between Clubs despite any provision to the contrary in the charterparty.

In that case it was decided that the ICA would only apply where the relevant bill of lading had been issued in strict compliance with the terms of the charterparty in question. The version continues to include “costs” in the apportionment, and clarifies that “costs” means the following: William is a solicitor based in the London office. Our Club, in common with the other Group clubs is issuing a circular to inform Members of this change. Inter-Club Agreement as amended agreememt September The Group believes that this situation is unsatisfactory and has led to unnecessary, wasteful and costly intercclub between Clubs.

Application has been extended to claims made under contracts of carriage of whatever form 10provided such contracts are authorised under the charterparty.

The Ihterclub endeavours to remove the contradiction contained in the formula. Under this new provision once one of the parties to a charterparty has put up security in respect of a cargo claim, provided the time limits set out in clause 6 of the agreement have been complied with, there is an entitlement to security on the basis of reciprocity.

Mr Justice Teare noted that the meaning of clause 8 d must depend on its context and it must be construed having regard to the language of the ICA as a whole. Condensation resulting from bad stowage where the words “and responsibility” have been added to Clause 8. For the last 12 years the version ICA has been in operation.

You can change your cookie settings at any time. Interclhb advises on “dry” shipping disputes such as charterparty and bill of lading disputes and is also experienced in “wet” shipping issues. A material amendment is one which makes the liability, as between owners and charterers, for cargo claims clear.


Inter-Club New York Produce Exchange Agreement 1996 (As Amended September 2011)

Waybills authorised under the charterparty and incorporating the Hague or Hague-Visby Rules or containing terms no less favourable. However, the Agreement will also apply where the claim is made under a document 19996 than a bill of lading. However, these words are superfluous because the Agreement is between the Clubs, who do not have authority to bind their Members to it, so the Agreement is not binding on the Agreejent in any event.

Members who need to advise the Club of updates to their recorded ships’ details should advise their usual underwriting contact.

Some of these amendments may introduce changes to the manner in which liability for cargo claims is apportioned between owners and charterers. Costs Although the version of the ICA did not contain a definition of cargo claims, it made clear that the apportionment should also apply to “legal costs incurred” on cargo claims.

Documents which would have been authorised under the charterparty except for the inclusion of through or combined multimodal transport provisions, incorporating the Hague or Hague-Visby Rules or containing terms no less favourable.

Inter-Club New York Produce Exchange (N.Y.P.E.) Agreement

Still, the omission of this inteclub may serve to avoid confusion when the ICA is expressly incorporated into charterparties and thereby binding on charterers and owners.

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 Agerement Produce Exchange Form or or Asbatime Form or any subsequent amendment of such formswhether or not this Agreement has been incorporated into such charterparties.

However, if under such a charterparty, charterers have issued bills of lading to which the Hamburg Rules apply as a matter of law, there will be no defence to a claim for negligent navigation or management of the vessel under the bill of lading but charterers will be unable to pass on the claim to owners due to the negligent navigation or management of the vessel defence in the charterparty.

Charterparties authorised under the charterparty and incorporating the Hague or Hague-Visby Rules or containing terms no less favourable. Some pages or content may fail to load. Accordingly, it became necessary to introduce a clear definition of “cargo claims”.