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Inter Club Agreement 2011

BIMCO recommends that the 2011 agreement apply to all NYPE/Asbatime charter lots and rights resulting from these charter lots when they are concluded and include the 2011 agreement or another version of the Inter-Club New York Produce Exchange Agreement. Although this conclusion was made in an arbitration proceeding and therefore does not constitute a legally binding precedent, it may encourage others to challenge security claims for similar reasons. Gard therefore recommends that members and customers carefully review the charter`s handling clauses to ensure that the 2011 ICA is clearly integrated into its entirety. Gard will discuss the potential impact of this award with other clubs within the International Group of P-I Clubs and Gard will update our members and clients in due course. In the meantime, members or clients who have questions or need help are encouraged to contact Gard. Freight interests have filed a lawsuit against Head Owners, which claim $900,000 in damages. After the threat of arrest, the Club for Head Owners took the form of a letter of commitment to ensure safety. Gard recommends that members and customers integrate the ICA in 2011 into the NYPE and ASBATIME charter parties. The objective of the ICA is to promote adequate settlement and reduce costs by avoiding costly litigation in the handling of freight applications. In this case, the Tribunal found that the decision did not compromise the intent of the ICA, since the main objective, namely the rapid allocation of liability for cargo claims, was not affected. However, one of the main objectives of the 2011 ICA review was to ensure that parties to a freight application could protect themselves from their contractual partners without difficulty. Gard`s experience is that the security mechanism normally works smoothly and is a necessary element to protect members from counterparty failures, whether in the event of insolvency or avoiding counts.

Owners and operators should check the wording of their existing charter lots after an LMAA arbitration tribunal recently determined that the 2011 inter-club agreement was not duly included in a NYPE charter party in its entirety.