The Inter-Club New York Produce Exchange Agreement, generally referred to as the Inter-Club Agreement (ICA), has provided a relatively simple mechanism for swiftly and fairly apportioning liability for cargo claims arising under New York Produce Exchange Form (NYPE) or Asbatime charterparties. It can also apply to contracts of carriage authorised under such charterparties.
An important revision to the ‘Inter-Club Agreement’ takes effect from the 1st September this year. Our Club, in common with the other Group clubs is issuing a circular to inform Members of this change.
Under this new provision once one of the parties to a charterparty has put up security in respect of a cargo claim, provided the time limits set out in clause 6 of the agreement have been complied with, there is an entitlement to security on the basis of reciprocity.
The new ‘Security Provision’ is found in clause 9 of this 2011 agreement.
As the new agreement takes effect from 1st September 2011, we recommend its incorporation into all NYPE and Asbatime charterparties going forward.