Inter-Club New York Produce Exchange Agreement – ICA

NYPE form of charterparty has been in widespread use for many years, the cargo responsibilities provisions do not readily enable owners and charterers to apportion responsibility for cargo claims. Consequently, more than 35 years ago the major P&I Clubs – who insure the cargo liabilities of both owners and time charterers – reached an agreement on a relatively simple formula for the apportionment of cargo claims which they would recommend to their members, namely the Inter-Club New York Produce Exchange Agreement (‘ICA’). Owners and charterers are not bound to follow the ICA merely because they are members of the P&I Associations, but the Associations do undertake to recommend that their members consent to their disputes being resolved in accordance with its terms. Sometimes the ICA is expressly incorporated into the NYPE charterparty. By way of example, the 1993 version of the NYPE charterparty includes a printed clause (clause 27) that cargo claims are to be settled between owners and charterers in accordance with the 1984 version of the ICA, or any subsequent modification replacement thereof.