Major revision of NYPE time charter party promises to be both balanced and comprehensive

Share
Share on facebook
Share on twitter
Share on linkedin

BIMCOBIMCO has today (Thursday) jointly issued the first revision of the New York Produce Exchange Time Charter (NYPE) since 1993, following three years of intensive discussions between BIMCO, copyright holder the Association of Ship Brokers and Agents (ASBA) and the Singapore Maritime Foundation (SMF).

BIMCO, ASBA and the SMF have consulted with the industry globally during the development of the new edition of NYPE to gather a clear picture of commonly made amendments and rider clauses added by practitioners. Careful account has been taken of the interests of owners and charterers together to create a more balanced agreement than in previous versions of the charter.

Key features of NYPE 2015 include:

  • A choice of trip or period charter.
  • Optional Not Always Afloat But Safely Aground (NAABSA) provision.
  • Choice of cargo readiness at delivery port or first load port.
  • Obligation on owners/charterers to restrict further employment immediately prior to delivery/re-delivery that might delay the ship.
  • Owners to provide and maintain Certificates of Financial Responsibility for oil pollution as required at the start of the charter period.
  • Detailed bunker provisions for period and trip charter options covering quantities and prices; bunkering operations and sampling; quality and liability; fuel testing; and low sulphur fuels.
  • Updated and clarified hire payment provisions relating to grace period, suspension and withdrawal consistent with recent legal decisions.
  • Detailed and clarified speed and performance clause.
  • A broad choice of law and arbitration options – New York/US law; London/English law; Singapore/Singapore or English law; or a free choice agreed by the parties.
  • additional clauses dealing with a range of current issues: hold cleaning/residue disposal in accordance with MARPOL; International Maritime Solid Bulk Cargoes (IMSBC) Code; hull fouling; electronic bills of lading; slow steaming; piracy; ISM/ISPS Codes; ballast water exchange regulations

Søren Larsen, BIMCO’s Deputy Secretary General, said: “We are delighted that our close cooperation with ASBA and SMF has resulted in the completion of this major project to produce a much improved NYPE that will be of great benefit to the industry.

“Users of the current NYPE form will certainly still recognise and be familiar with the core elements of the time charter party, but they can also expect to see some significant changes and improvements.

“Notably, the contract incorporates many of the rider clauses that are routinely added to the existing NYPE – but we have made sure that any new clauses incorporated into the new NYPE are relevant, balanced and consistent with the other provisions.

“Overall, our aim was to create a modern NYPE with global appeal – and I believe that this has been achieved.”

Nigel Hawkins, Chairman of the ASBA drafting committee, said: “The 1993 NYPE Charter Party was ripe for updating. ASBA is therefore pleased that with our friends at BIMCO and the Singapore Maritime Foundation we have agreed the wording of an NYPE fit for the present day. ASBA hope that the industry will find this new NYPE a clear and logical document, and, that the industry will note some familiar language contained in past NYPE documents.”

Michael Chia, Chairman of the Singapore Maritime Foundation, said: “The revised NYPE is the first international shipping form that is a collective effort spanning the globe involving ASBA, BIMCO and the SMF. With the extensive global industry stakeholder consultation we believe that the end product is a contract that better meets user needs and will see quick acceptance and adoption.”

 

logo