"Freight claims between owners and charterers are subject to the provisions of the 1996 New York Inter-Club Product Exchange Agreement (as amended in 2011) or to any subsequent amendment or replacement thereof. This clause prevails over all other clauses of this Charter Party that purport to incorporate another version of the New York Inter-Club Agreement on the Exchange of Goods into this Charter Party. As the new agreement will come into effect on September 1, 2011, we recommend that it be included in all NYPE and Asbatime Charter Parties in the future. The new "security provision" is found in clause 9 of this 2011 Agreement. Inter-Club New York Produce Exchange Agreement 1996 (91 KB) Under this new provision, there is a right to mutual security once one of the parties has provided a charter party with security for a freight claim, provided that the deadlines set out in clause 6 of the agreement have been met. A major revision of the interclub agreement will enter into force on 1 September this year. Our club, like the other clubs in the group, issues a circular to inform members of this change. All member clubs of the International Group have issued a similar circular. The ICA`s objective is to avoid lengthy and costly litigation on liability and allocation issues, and instead seeks to establish an "approximate and voluntary" allocation of liability between the parties. Clubs encourage their members to accept the Allocation of Liability Agreement for any cargo claim arising out of, from or in connection with all Charter Parties on Form NYPE 1946 or Form asbatime 1981, whether or not this Agreement has been incorporated into such Charter Parties. However, unless the CIA has been expressly included in the Charter Party, it may not be enforceable.
However, a recent decision in London raised concerns within the International Group, with the court noting that the Charterparty clause contained only the ICA`s liability provisions and not the security obligation contained in clause 9 of the 2011 agreement. In order to promote the application and incorporation of the 2011 Agreement into all NYPE/Asbatime Charter Parties, the circular issued in May 2016 referred members to a clause recommended by the Charter Party drafted by the International Group of P&I Clubs. Accordingly, the International Group amended the recommended wording of the Charterparty clause published in 2016 to reflect the latter finding and to reflect the collateral requirement of the 2011 Agreement. The amended referral clause reads as follows: The New York Inter-Club Product Exchange Agreement, commonly referred to as the Inter-Club Agreement (ICA), provides a relatively simple mechanism for the quick and fair sharing of liability for freight claims arising from the New York Product Exchange Form (NYPE) or Asbatime CharterParties. It may also apply to contracts of carriage approved under such contracts of charter. No-fault liability on its part under the Inter-Club Agreement ("ICA"). .