The first Documentary Committee meeting of 2013 took place in London on 6 February under the chairmanship of David Chapman of OSG Tankers UK Ltd. The Committee has recently completed its work on two new clauses – a River Ports Clause and a H2S Purging Clause. The INTERTANKO Model River Ports Clause is designed to provide clarity on the commencement of laytime and demurrage in river ports. The benefit of the clause is that charterers cannot say that owners failed to tender NOR at the terminal where they do not allow owners to stop and tender; NOR can be tendered ‘at or passing’ the first inbound pilot station. The clause has been deliberately left as a general clause and is not specific to any particular river port.

It reads as follows:

INTERTANKO Model River Ports Clause

Notwithstanding any other terms in this charter party, if the vessel is to load or discharge at any river port or place, NOR may be tendered at or when passing the first inbound pilot station. Laytime or time on demurrage shall commence 6 hours later and shall cease at or passing last outbound pilot station, less the notional steaming time calculated at the vessel’s service speed for the inbound and outbound passages.

The INTERTANKO Model H2S Purging Clause stems from issues where an owner might burn bunkers to purge for H2S under charterers’ instructions only to finds the same level of H2S appears the next day. Time and costs resulting from this exercise should be for charterer’s account in accordance with the clause below:

INTERTANKO Model H2S Purging Clause

(a) Owners shall not be responsible for any H2S content emanating from the cargo and Charterers shall indemnify Owners for all delays, costs, and liabilities, including but not limited to any fines, penalties, expenses, shifting costs and extra bunkers consumed (IFO/MDO/MGO) arising from the presence of H2S. All time lost shall count as laytime or time on demurrage,

(b) Charterers shall have the option to instruct the vessel to purge the cargo tanks in order to reduce the H2S levels. Any time lost as a result of the purging shall count as laytime or time on demurrage. Any expenses arising from the purging operations including but not limited to shifting expenses and other port expenses and all bunkers consumed (IFO/MDO/MGO) shall be for Charterers’ account.

(c) All bunker costs shall be calculated at the last purchase price.

The Committee was joined by Bob Gilchrist, Director of INTERTANKO’s Associate Member SafeSTS. He gave a presentation covering STS issues, in particular applicable regulations including Chapter 8 to MARPOL and Annex 1 and chartering clauses. Gilchrist was able to share his practical expertise on STS with the Committee and make some helpful recommendations for revision of the INTERTANKO Model STS Clause. These recommendations will be followed up by the Committee.

The Committee is finalising its drafting of a Change of Regulation Clause and is also considering revisions to its model Sanctions Clause to account for recent developments in economic sanctions in the US, EU and elsewhere. It has begun work on drafting a Hotel Bunkers Clause given the proliferation of disputes between Members and Charterers on this point.

The Committee is also continuing its work on ways in which it can support the Association’s discussions both at Executive Committee and Council on sustainability of the tanker market, in particular by looking at payment mechanisms and clauses as well as clauses dealing with bunker costs.

The Committee is actively looking for new members from the broking community and any interested candidates are asked to contact the Secretary. Members are also invited to make any suggestions for the development of model clauses.

The next meeting will take place in May 2013 in conjunction with the INTERTANKO Tanker Event due to take place in Oslo 29-31 May 2013. As part of the Tanker Event, the Committee, led by Professor Martin Davies, will deliver its ever popular Tanker Chartering Seminar and Workshops on 31st May 2013. More details on speakers, topics and registration will follow in next week’s Weekly News.

Source: Intertanko