Last week, the International Group of P & I Clubs published
a recommended Inter-Club Agreement (ICA) incorporation clause.
It is commonplace for charterparties to incorporate the ICA as a
contract term. For decades, ICA incorporation clauses have been
considered relatively uncontroversial. However, the recent London
Arbitration 18/18 decision has thrown the cat amongst the pigeons;
the Tribunal found the effect of the ICA incorporation clause in
that charterparty was to incorporate, or contractually apply, those
parts of the ICA dealing with apportionment but not clause 9 which
deals with the provision of security.
Readers will recall that clause 9 comes from amendments to the
ICA made in 2011 (see
https://www.reedsmith.com/en/perspectives/2011/08/the-interclub-agreement-amendments-relating-to-sec).
Prior to that, the ICA did not address the provision of
security.
