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 new „security provision“ is contained in Clause 9 of this 2011 agreement. 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 Inter-Club New York Produce Exchange Agreement, commonly known as the Inter-Club Agreement (ICA), has provided a relatively simple mechanism for a quick and fair distribution of liability for cargo applications under the New York Produce Exchange Form (NYPE) or Asbatime Charterparties. It may also apply to transportation contracts that have been approved under such charter parties. The court agreed with the charterers that the chartering party included, strictly constructed, only the parts of the 2011 ICA regarding the allocation and processing of freight rights. The wording of section 35 was clearly restrictive and did not provide security for claims. In the absence of explicit wording containing the full provisions of the ICA, their full inclusion could not be accepted. 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. „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.
„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. Inter-Club New York Produce Exchange Agreement 1996 (91 KB) The objective of the ICA is to avoid lengthy and costly liability and distribution disputes, and instead to ensure a „gross and ready“ distribution of liability between the parties. Clubs recommend that their members accept the agreement for the allocation of liability for cargo claims that arise in the context, initially or in connection with all parties to the charter on Form NYPE 1946 or asbatime Form 1981, whether or not that agreement was included in these charter parties.