Interclub New York Produce Exchange Agreement

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As the new agreement will enter into force on 1 September 2011, we recommend its inclusion in all parties to the NYPE and Asbatime charter. The new “security provision” is included in clause 9 of this 2011 agreement. Although the New York Produce Exchange Form (NYPE) charter party has been widespread for many years, cargo liability rules do not easily allow owners and charterers to take responsibility for freight claims. More than 25 years ago, international group clubs agreed on a relatively simple burden-sharing formula that they would recommend to their members. The NYPE Inter-Club Agreement appears to have become an industry standard in the sense that the parties to the NYPE charterer now routinely settle the settlement of freight rights between owners and charterers, in accordance with the terms of the agreement. Under this new provision, the right to security is reciprocal as soon as one of the parties to a party to the charter has provided security in respect of a request for freight, provided that the time limits set out in clause 6 of the agreement have been complied with. However, a recent arbitration proceeding in London raised concerns for the International Group, as the court found that the charter`s holiday clause contained only the ICA`s liability clauses and not the security screening obligation contained in clause 9 of the 2011 agreement. Accordingly, the International Group amended the text of the recommended Charter clause adopted in 2016 to reflect this recent finding and to include the security requirement of the 2011 Agreement. The amended recommendation clause is as follows: does not deviate from the fundamental character of its predecessor and maintains a mechanical approach to the allocation of liability that has been so successful in avoiding lengthy and costly litigation. ii. that, where the words “freight rights” are added to clause 26, second sentence, of the New York Produce Exchange Form 1946 or 1993 or to clause 25 of Asbatime Form 1981, the allocation provided for in this Agreement shall in no case be applied, even if the charter is subject to the terms of this Agreement; c.

all legal, club correspondent and expert costs reasonably incurred in defending or settling the rights invoked by the person of origin, but not any kind of costs incurred in introducing a right under this Agreement or in claiming compensation from the party to the charter. b. Claims actually arising from the loading, storage, loading, unloading, storage or other handling of goods: unless the words “and liability” are added to clause 8 or there is a similar change that holds the master responsible for handling the cargo, in which case: 4. . . .