Interclub Agreement

The inter-club agreement, also known as the ICA, first entered into force on 20 February 1970. This original version was first revised in 1984 and again in 1996. Currently, the latest version is the ICA 2011. The ICA was originally drafted by the International Group of P&I Club (“the IG”) as an agreement between IG clubs, as they will recommend to their members to settle freight fees between owners and charterers registered in IG Clubs. Once incorporated into a charter party, the ICA becomes an agreement between the parties, not their respective clubs. It was designed to provide a simple mechanism for sharing freight rights between owners and charterers, and should be used with the New York Produce Exchange (NYPE) and Asbatime Form Charterparties. Comments: Although they are primarily designed for use with these charter parties, the parties may, if they wish, incorporate other forms of party into the charter. However, this should be done with caution, as not all forms on the charter party are as compatible and inconsistencies may arise. As the new agreement will enter into force on 1 September 2011, we recommend its inclusion in all parties to the NYPE and Asbatime charter. It is likely that future amendments to the inter-club agreement will take this arbitration decision into account. However, there does not appear to be a substitute for regularly updating each end of a charter party and a bill of lading chain in the event of a potential or actual claim, particularly where one of the parties to a charter chain grants extensions of time to assert claims for freight interests.

Under this new provision, the right to security is reciprocal as soon as one of the parties to a party to the charter has provided security in respect of a request for freight, provided that the time limits set out in clause 6 of the agreement have been complied with. (10) This Agreement is governed by English law and falls under the exclusive jurisdiction of the English courts, unless it is incorporated into the Charter Party (or the settlement of freight claims under the Charter Party is subject to this Agreement), in which case it is subject to the laws and judicial provisions applicable to the Charterer Party. Comments: In order for a claim to be recovered under the ICA, the underlying rights must have been made from a contract of carriage approved by the party to the charterer, that is, a bill of lading contract issued was not issued in violation of the applicable terms of the party to the charter. The term “contract of carriage” is very broad and the rights of the ICA can therefore derive from any type of contract of carriage, including bills of lading, sea waybeds, charter parties or even sub-charters. Since the ICA is a commercial agreement, courts often do not find that a bill of lading has not been issued in accordance with the terms of the C/P and as such is “not authorized” for the purposes of the ICA – see London Arbitration 3/13. The new “security provision” is included in clause 9 of this 2011 agreement. International Group amended the clause as follows to include an explicit reference to safeguarding claims: Judge Waksman QC disagreed with the charterers. He considered that a detailed analysis of the specific cargo handling function was contrary to the simple and mechanical approach sought by those who had designed the ICA. The sequence of events that occurred after that date appears to have been in the fact that the shipper informed the charterers that the consignee would file a freight application. . .


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Marica van der Meer Fotografie

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