A merican Club Circular No . 22/25 1 OCTOBER 29, 2025 CIRCULAR NO. 22/25 TO MEMBERS OF THE ASSOCIATION Dear Member: RIGHTS OF RECOURSE FOR THE CARRIAGE OF DANGEROUS GOODS IN CONTRACTS FOR CARRIAGE With effect from February 20, 2026, it will be a requirement under mutual P&I cover that Members preserve certain rights of recourse for the carriage of dangerous goods in contracts for carriage. Specifically, any liabilities that would not have arisen but for a waiver, a limitation of or a failure to incorporate rights of recourse for the carriage of dangerous goods which are found in Article IV Rule 6 of the Hague or Hague Visby Rules, will only be recoverable at the discretion of the Club’s Board of Directors. This evolution in cover reflects the Group clubs’ support for laws that have automatic application to the contract for carriage, such as the Hague and Hague Visby Rules, representing a long-established and fair system, with the parties’ rights and obligations being clearly defined, including the express right of the carrier to recover from a shipper in respect of the carriage of dangerous goods where notice that the goods are dangerous has not been given. 1 In contrast to contractually negotiated or implied rights, the carrier’s right of recourse for the carriage of dangerous goods in these circumstances is one of strict liability that, in the majority of maritime jurisdictions, is automatically applicable under a bill of lading as a matter of statute/law, unless expressly waived or restricted by the carrier. The requirement to uphold such rights of recourse is therefore simply an expression of the wellestablished principle of P&I cover that Members should contract on terms that are no less favorable than the Hague or Hague Visby Rules, a principle based on the premise that sharing risks requires a level playing field. The concept of mutuality would be breached if greater liabilities were to be incurred because a Member agreed less advantageous terms for commercial benefit. Moreover, the liabilities that can be incurred through the carriage of dangerous goods are potentially very large. Several significant cases involving dangerous goods have impacted the Pool in recent years. In such circumstances, where Group club members share these risks, Members ought to contract on terms which preserve these rights of recourse, thus ensuring the Group clubs are not hindered from recovering where losses are caused by dangerous goods. The Group clubs’ aim is to 1 For the avoidance of doubt, references in this Circular to “dangerous goods” are not aimed at situations where the carrier is made expressly aware of the dangerous nature of the cargo and has thus accepted the risk of such danger. A merican Club Circular No. 22/25 2 be proactive in guarding against such instances, particularly given the high-profile cases already presented to the Pool. On a broader note, Group clubs seek to promote safety in shipping including safety of seafarers, the environment and property, as well as sustainability in the value chain to which shipping belongs, all of which support the proposition that suitable safeguards ought to be in place regarding the shipment of dangerous goods, and accordingly that Members’ rights of recourse be preserved. The FAQs that follow provide further information about this change to Club cover and its implications. Yours faithfully, Dorothea Ioannou, CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB All Clubs in the Int