Do I need to have a Clause in my charterparty?

• The International Group has updated earlier versions of the Charterparty Clauses dealing with Financial Responsibility in respect of Pollution. This can be found in the Annex to the Circular dated 28 August 2008. A version in pdf format can be found here.

What is the purpose of the Clause?

• The main purpose is to place an obligation on the owners to meet the financial security requirements of the Bunkers Convention, the Civil Liability Convention (CLC) and OPA 90 when these are applicable but to relieve owners from any obligation to arrange financial security for other pollution liabilities.

Are there a different clauses for tankers and non-tankers?

• No; although there were previously separate clauses, there is now one clause for all vessel types.

How does the Clause differ from earlier Clauses?

• 1(a) is new and reflects the coming into force of the Bunkers Convention
   
• 1(b) follows the provision in the former clause applicable to tankers which are subject to CLC; an addition has been made which defines the circumstances in which CLC applies (i.e. “if the vessel is constructed or adapted for the carriage of persistent oil in bulk as cargo and is carrying more than 2,000 tons of such cargo”).
   
• 1(c) follows the provisions in the former clauses in relation to OPA 90 and CERLA; an addition has been made which defines the circumstances in which OPA 90 applies (i.e. “if the vessel is over 300 gross tons and is required to enter US navigable waters or any port or place in the US”); a proviso that that the obligation to maintain a certificate only lasted so long as these can be obtained by the owners has been dropped.
   
• 2 & 3 are the same as previous clauses.