Nordisk Circular
March 2020
NOTE – Quarantine delays under voyage charterparties
Where the printed form includes a Quarantine Clause, the general concept across these is similar, namely, time counts where delay is caused by quarantine if the quarantine is in place when the vessel is sent/ordered there or the port nominated. If the quarantine is imposed after orders/nomination, the delay falls on owners. These clauses deal only with delay and do not give owners a right to refuse to go to a quarantined port.
If Hague-Visby Rules are incorporated into the Charterparty, Art.IV Rule 2(h) excludes liability for loss or damage arising out of quarantine.
Dry Charter Forms
1. AMWELSH 93
The printed form does not include a quarantine clause. Accordingly, delays will be dealt with by way of the usual laytime regime.
2. GENCON 94
The printed form does not include a quarantine clause. Accordingly, delays will be dealt with by way of the usual laytime regime.
Wet Charter Forms
3. ASBATANKVOY
Cl. 17(a) “Should the Charterer send the Vessel to any port or place where a quarantine exists, any delay thereby caused to the Vessel shall count as used laytime; but should the quarantine not be declared until the Vessel is on passage to such port, the Charterer shall not be liable for any resulting delay”
Commentary in Voyage Charters para.67.2 opines that the language “should the charterer send” suggests an active order is required and this would not apply where the port is simply named in the charterparty.
4. BPVOY – BPVOY 4 & 5
Clauses 29 and 32 respectively “If Charterers require the Vessel to proceed to any port which, at the time when the Vessel is ordered to that port, there is a quarantine then time spent or lost whilst the Vessel is detained due to such quarantine shall count as laytime or, if the Vessel is on demurrage as demurrage. However, if quarantine is subsequently declared whilst the Vessel is on passage to such port Charterers shall not be liable for any delay caused by such quarantine.”
Note that under clause 6.3 if the Vessel cannot berth on arrival NOR can be tendered at customary anchorage. However, if free pratique is not granted within 6 hours owners must issue a letter of protest otherwise time will not start to count.
Note also the general right charterers have under Clause 22/Clause 21 to provide revised voyage orders.
5. ExxonMobil VOY2012
Clause 23 “Time lost at any port or place due ot quarantine shall not count as laytime or, if the Vessel is on demurrage, as time on demurrage, unless such quarantine was in force at the time when such port or place was nominated by Charterer”
There is also an exception to laytime and demurrage under Clause 14(c) for time lost by reason of action/inaction of (amongst others) the Health Authorities. Charterers may therefore be protected from delay as a result of COVID-19 when there is no formal quarantine in place.
Note also, the general right charterers have under Clause 9(b) to nominate new ports or places.
6. Shellvoy 5 & 6
Clause 23 “Time lost due to quarantine shall not count against laytime or for demurrage unless such quarantine was in force at the time when the affected port was nominated by Charterers.”
Charterers can give revised orders under Clause 26 at their expense.
Clause 32(1) provides a general exception to liability for loss, damage or delay except as otherwise provided for in the charterparty, arising or resulting from quarantine restrictions. Cargo claims are excluded from this.
Note the position on tender of NOR in the absence of free pratique differs significantly between Shellvoy 5 and 6. See the note on NOR/Laytime for more details.
Written by Vicki Tarbet.
In this issue
- Nordisk Circular – The COVID-19 Edition
- NOTE – Off-hire issues under various charterparties
- NOTE - NOR/Laytime Regimes
- NOTE – Quarantine delays under voyage charterparties
Written by:
Vicki Tarbet
Solicitor (England & Wales)
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