Electronic trading & Himalaya clause circulars

  • Date: 16/09/2010

Electronic trading & Himalaya clause circulars

 A new Himalaya clause wording, jointly drafted by the International Group and BIMCO is announced this week. Our Club Circular 15/10 published today includes a copy of the revised clause. Both BIMCO and the International Group websites also carry copies of the wording for download.

The purpose of the Himalaya clause is to exempt a carrier’s servants or subcontractors from liability under a contract of carriage, or extend to them the same protection from liability as enjoyed by the carrier.

The circular explains how care needs to be taken in the implementation of the clause in different transport contracts such as bills of lading. As well as explaining its key features, it also provides the background and history of this type of clause.

In addition Circular 16/10, issued this week, advises on the cover provided in respect of liabilities when using electronic trade documents.

The UK Club, in common with other clubs in the International Group, agreed to cover liabilities arising in respect of the carriage of cargo under certain approved electronic trading systems with effect from February this year.

The two electronic systems which have been approved to date are “Bolero”and “ESS”.

Members should be aware that the traditional exclusions of cover under Club Rules continue to apply in the same manner as with paper systems. Furthermore, participation in electronic trading systems may expose Members to risks for which additional non-P&I cover should be obtained.

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