What is Interclub agreement?

What is Interclub agreement?

The ICA was formulated by the International Group of P&I Clubs (IG) to provide a simple mechanism for the resolution and apportionment of liability in disputes under charterparties between Owners and Charterers as to the cause of loss and damage to cargo.

What is ICA in shipping?

The Inter-Club Agreement, otherwise known as the ICA, first came into force on 20th February 1970. Once incorporated into a charterparty, the ICA becomes an agreement between the parties, not their respective Clubs.

When did the inter club agreement come into force?

The Inter-Club Agreement, otherwise known as the ICA, first came into force on 20 th February 1970. This original version was first revised in 1984, and then again in 1996. Currently, the latest version is the ICA 2011.

How is the ICA used in a charterparty?

Once incorporated into a charterparty, the ICA becomes an agreement between the parties, not their respective Clubs. It was designed to provide a simple mechanism for apportioning cargo claims as between Owners and Charterers, and was envisaged to be used with the New York Produce Exchange from (NYPE) and Asbatime form charterparties.

Is the time charter on the inter club Nype form?

The time charter was on an amended NYPE form which expressly incorporated the Inter-Club NYPE Agreement 2011 (the ICA). On 9 January 2015, the charterers issued bills of lading on charterers’ house form.

When does a charterparty have to put up security?

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.