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COVID-19, Coronavirus, shipping, ports, contracts Home Publications Articles COVID-19: Guide For Members on Contractual Issues COVID-19: Guide For Members on Contractual Issues Publications Rohan Bray Published: April 02, 2020 Contact author Download article pdf Image Highlights While general guidance can be provided, advice in any given situation will depend heavily on individual circumstances and the terms of the applicable contract. As matters currently stand, it is unlikely that a port would be considered “unsafe” due to Covid-19, but that could change in the case of blacklisting, or quarantine resulting in inordinate delays (§1). Vessels may be off-hire if there are delays due to actual or suspected crew illness, but probably not otherwise, unless “whatsoever” is added to the off-hire clause. But even if technically off-hire, charterers may have to indemnify owners for losses resulting from following charterers’ orders (§2.1). Regarding the commencement of laytime, WIFPON clauses might not assist owners as the vessel may still need to clear quarantine before NOR can be tendered. Specific clauses can be used to avoid this problem (§2.2). Deviations for the purpose of saving the life of a sick crew member will usually be allowed, but continued payment of hire will depend on the charterparty terms. Where there are restrictions on entry / berthing at a discharge port, unloading of cargo at an alternative place may be allowed in some cases (§4). Frustration is unlikely to occur in anything other than extreme cases. Force majeure clauses may be relevant, but this will depend on their precise terms and adherence to legal requirements (§5). Bespoke clauses such as the BIMCO Infectious or Contagious Diseases Clauses or Intertanko Covid-19 Clauses are generally recommended. In January the Club published a website article touching on important aspects of the Covid-19 outbreak in the context of time charterparties. As Covid-19 has subsequently escalated into a global pande
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pi_circular Steamship Mutual ·2020-04-02

COVID-19: Guide For Members on Contractual Issues

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