Incorporation of Inter-Cub Agreement into time charter. Does it bring in the ICA’s security provisions?

 

If your charter incorporates the provisions of the Interclub NYPE Agreement 2011 don’t assume that everything in the agreement is brought into the charter. It all depends on the wording of incorporation, as owners found out in London Arbitration 18/18.   Owners sought counter-security from charterers pursuant to the provisions of cl.9 of the ICA 2011. Clause 35 of the time charter provided “…Liability for cargo claims, as between Charterers and Owners, shall be apportioned/settled as specified by the Interclub New York Produce Exchange Agreement effective from 1996 and its subsequent amendments  (Tribunal’s emphasis).”The Tribunal held that the incorporating words in the time charter brought into the charter only those parts of the ICA relating to apportionment and settlement.  The incorporating words did not bring in the ICA’s provision relating to security for claims.

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