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In
the first of a five-part series on
the concern over the impact of war
risks on shipping, Nicholas Woo from
Richards Butler, a leading
London-based law firm that has
specialty in shipping and admiralty
law, outlined what constitutes legal
definition of war and war-like
operations. This week he takes a
look at the impact war and war-line
conditions on contracts.
Charter
war clauses and the issue of
cancellation
Some
of the standard war risks are set
out below.
| Standard
Time Charters
|
| NYPE
(1946) Form |
|
No
typed war risks clause |
| Asbatime
Form |
|
Lines
320-342 |
| Baltime
Form |
|
Clause
21 (effectively the
“Conwartime” clause) |
| Shelltime
Form |
|
Clauses
33-35 |
| Standard
Voyage Charters
|
| Gencon
Form 1976 |
|
Clause
16 (“Voywar 1950”) |
| Gencon
Form 1994 |
|
Clause
17 (“Voywar 1993”) |
| Asbatankvoy
Form |
|
Clause
20 (vi) |
| Shellvoy
5 Form |
|
Clause
34 |
| “Conwartime” |
|
Clauses
33-35 |
| Off
the Shelf
|
| “Conwartime” |
|
Chamber
of Shipping War Risk Clauses
1952 |
The
most important distinction between
the standard clauses are those that
allow for cancellation on the
happening of a defined set of
circumstances and those that do not,
noted in the table below.
| Standard
Charterparty Forms
|
| Right
of Cancellation |
|
No
Right of Cancellation
|
| Baltime |
|
NYPE |
| Shelltime
4 |
|
Asbatime) |
| Gencon
(1976 and 1994 forms) |
|
Asbatankvoy |
| Conwartime |
|
Shellvoy
5
Chamber
of Shipping War Risk Clauses |
| Automatic
Termination
|
|
Shellvoy 5- Clause 34(2)(a) |
There
are however, a number of common
threads to note.
Firstly,
the vessel is not to be ordered to
or to continue to a location which
falls within a number of alternative
definitions but most commonly, one
that is subject to a blockade or war
or hostilities or warlike operations
or exposes the vessel to a risk of
capture or seizure.
Certain
clauses also require that the
location be dangerous. Others
make the test dependent on the
appearance of events to or the
reasonable opinion of the master or
owners and that will be judged
objectively.
If
the clause is triggered, provisions
are made as to discharge of cargo
elsewhere or if the voyage proceeds,
as to payment of additional
insurance which is the next
sub-topic. In the case of the
Shelltime form, if no cargo is
loaded and charterers give no
substitute orders within 48 hours
then the charter is automatically
terminated.
Secondly,
the vessel is given liberty to
comply with orders or directions of,
inter alia, the flag state, war
risks underwriters, any other
government and in the case of Voywar
1993, the Security Council of the UN
and the directives of the European
Community (now known as the European
Union).
It
is interesting to note that
Shelltime 4 (unamended), refers to
war or hostilities involving the
USSR which no longer assists.
Whether that definition now embraces
the plethora of new states that once
were part of that umbrella operation
or not has to my knowledge, not yet
been tested.
Finally,
it is also worth noting that Voywar
1993 extends the definition of war
to acts of terrorists.
Next
week: The burden of additional war
risks insurance expenses under
charterparties.
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