Published 31 August 1996
Circular No. 5/96 1st September 1996
TO THE MEMBERS
Dear Sirs,
INTER-CLUB NEW YORK PRODUCE EXCHANGE AGREEMENT 1996
Although the New York Produce Exchange Form (NYPE) Charterparty has been in widespread use for many years, the cargo responsibility provisions do not readily enable Owners and Charterers to apportion responsibility for cargo claims. More than 25 years ago the International Group Clubs reached an agreement on a relatively simple formula for the apportionment of cargo claims which they would recommend to their Members. The NYPE Inter-Club Agreement seems to have become an industry standard in the sense that NYPE charterparties now routinely regulate the settlement of cargo claims between Owners and Charterers in accordance with the Agreement's formulae.
The Agreement was updated in 1984 to deal with one particular shortcoming relating to the time limit for the making of claims. Otherwise, there have been no significant changes.
Whilst the Agreement has worked very well, it has in certain areas become outdated and subject to certain legal anomalies, particularly with regard to its application to containerised cargo. In view of these deficiencies, a small Sub-Committee representing the International Group of P&I Clubs was given the task of producing a redrafted Agreement to reflect modern practices and to encourage its continued use.
The Inter-Club Agreement 1996 does not deviate from the fundamental nature of its predecessor and retains the mechanical approach to the apportionment of liability, which has been so successful in avoiding protracted and costly litigation.
Whilst the fundamental nature of the Agreement remains unchanged, the Agreement has been arranged in a more logically structured way to make it simpler, easier to read and therefore more user friendly. A number of redundant or unnecessary provisions have been removed.
The following new features should be noted:
The definition of cargo claim(s) has been broadened and now includes related customs dues or fines, interest and certain costs.
Claims arising under Through Transport or Combined Transport Bills of Lading are included but only when it is established that the cause of the loss or damage occurs between and including loading and discharge of the chartered vessel. Claims arising under other types of contracts of carriage, such as waybills and voyage charterparties are also included.
The new time-bar provision also caters for the possibility that the Hamburg Rules will apply.
A copy of the Inter-Club Agreement 1996 is attached herewith. It will take effect from 1st September 1996.
Yours faithfully, American Steamship Owners Mutual Protection and Indemnity Association, Inc. Assuranceforeningen, Gard Assuranceforeningen, Skuld, The Britannia Steam Ship Insurance Association Limited, The Japan Ship Owners', Mutual Protection and Indemnity Association, Liverpool and London Steamship Protection and Indemnity Association Limited, The London Steam-Ship Owners' Mutual Protection and Indemnity Association Limited, The Newcastle Protection and Indemnity Association, The North of England Protecting and Indemnity Association Limited, The Shipowners' Mutual Protection and Indemnity Association (Luxembourg), The Standard Steamship Owners' Protection and Indemnity Association (Bermuda) Limited, The Steamship Mutual Underwriting Association (Bermuda) Limited, Sveriges Aangfartygs Assurans Forening (The Swedish Club), The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited, The West of England Ship Owners Insurance Association (Luxembourg)
Gard is a member of
