Charterer’s use of vessel as a floating warehouse an ‘act’ under the Inter-Club Agreement



In the Yangste Xing Hua [2016] EWHC 3132 (Comm) Teare J has construed the reference to ‘act or neglect of’ charterers or shipowners in cl.8 (d) of the 1996 Inter-Club Agreement as encompassing any act whether or not culpable. The relevant provision reads:

(d) All other cargo claims whatsoever (including claims for delay to cargo):

50% Charterers

50% Owners

unless there is clear and irrefutable evidence that the claim arose out of the act or neglect of the one or the other (including their servants or sub-contractors) in which case that party shall then bear 100% of the claim.”


Cargo damage arose due to overheating while the vessel waited off the discharge port in Iran for four months. The trip charterers had ordered the vessel to wait there as they had not been paid for the cargo. The resulting cargo damage fell under cl.8(d) of the ICA and was 100% for charterer’s account as it had arisen from their ‘act’.