Emergency Contact In-Transit Loss Clause – A Double-Edged Sword for Ship Owners Home Latest updates News In-Transit Loss Clause – A Double-Edged Sword for Ship Owners 6 Dec 2024 View PDF Sign up for alerts Owners in the liquid bulk cargo trade are often asked by charterers to include an In-Transit Loss (ITL) clause into the charterparty during negotiations. Amid the numerous terms discussed before finalising a charterparty, such a request might be taken lightly by owners. While the ITL clause can potentially protect owners against in-transit losses arising from paper shortages and/or physical shortages within an acceptable allowance, a poorly worded ITL clause could inadvertently exclude or override clauses that incorporate the Hague/Hague-Visby Rules, such as the clause paramount. Prudent owners should therefore exercise caution before agreeing to a charterer’s request to include an ITL clause into a charterparty. ITL clause An in-transit loss refers to the difference between the ship’s recorded cargo volumes after loading at the load port and before unloading at the discharge port. Paper losses may arise in circumstances such as: (i)               Temperature changes, which cause variations in cargo volume at the load and                                   discharge ports despite the mass remaining unchanged; (ii)              Difference in free water detection at the load and discharge ports;   (iii)            Measurement errors. Physical losses occur during the voyage and may result from the physical characteristics of the cargo, such as evaporation. The ITL clause in a charterparty allocates responsibility for these in-transit losses. Typically, the clause defines in-transit loss a