AMENDMENTS were introduced to the 1996 Inter-Club New York Produce Exchange Agreement in September! Not thrilled by this news? Never heard of the ICA? Heard of it, but don’t know what it is? Well here’s a quick lesson for you.
Ever wondered who ends up on the hook for cargo damage on a time chartered vessel? Certainly it’s a question Spinnaker’s staff often ask during their induction training (oh yes!). Well we’re not going to answer that question right here right now – there are whole books on the subject.
However, the ICA provided a simple(ish) mechanism to apportion liability between owners and charterers for cargo claims which have arisen on NYPE or Asbatime charterparties. The whole idea is to simplify and avoid expensive and time consuming litigation.
As is the way with these things, a side issue was all getting a bit out of hand, so the P&I clubs have stepped in to amend the ICA to produce a greater degree of cooperation, in the spirit of the original agreement, in order to reduce the time and costs associated with dealing with demands for security between the parties.
All of the P&I clubs in the International Group are recommending that the amended, even friendlier, ICA be incorporated into all NYPE and Asbatime charterparties going forward.