pi_circular Insurance & claimsCompliance & regulation Japan P&I Club
Novel Coronavirus (COVID-19)-Some Key Charterparty Issues The spread of Novel Coronavirus (COVID-19) over recent months has led to severe economic disruption with travel restrictions being imposed all over the world. On 11 March 2020, the World Health Organisation (WHO) have declared it to be a global pandemic and there are no immediate signs of it being brought under control. The effect on the shipping industry has been especially acute with a range of issues arising including quarantine restrictions being placed on vessels, concerns about infections amongst crew and delays by port authorities in granting clearance to vessels to enter port. In this circular we will deal with some of the common charterparty issues that have arisen as a result of this new infectious disease. Off Hire If a vessel is quarantined or otherwise delayed as a result of calling at port where there has been an outbreak of COVID-19 then the vessel may well be off-hire for the time lost although this will of course depend on the specific wording of any off-hire clause. Clause 15 of NYPE provides that a vessel will be off-hire "In the event of loss of time from deficiency of men … or by any other cause preventing the full working of a vessel". If the crew of a vessel were so sick as to be unable to perform their duties, then that would likely be a “deficiency of men” that would be sufficient to place the vessel off-hire for any time lost as a result. A delay due to quarantine necessary as a result of calling at a port where the virus was present could also be off-hire under an unamended NYPE Charter. In The Laconian Confidence [1997] it was found that legal or administrative restrictions on a vessel could qualify as “any other cause” if they related to the efficiency or condition of the vessel or crew. Clause 15 of the NYPE is often amended with the inclusion of the additional words "or any other cause whatsoever". This widens the scope of the cla
Novel Coronavirus (COVID-19)-Some Key Charterparty Issues - Japan P&I Club
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