Charterers' Liability Cover - UK P&I Members Area

6StevedoresLiability for damage caused to the ship bystevedores. Most time charters, particularly in thebulk and general cargo trades, have a stevedoredamage clause, which will make the chartererliable, in certain circumstances, for stevedoredamage.Safe portLiability for damage to the ship arising from thefailure to provide a safe port or berth.Marpol Annex VI has introduced restrictions onthe sulphur content of fuel. As a result, a chartererwill now have to supply bunkers not only of aquality to meet charterparty specifications, but alsoto enable the vessel to meet particular portrequirements depending on whether or not thestate has ratified Annex VI. Failure to do so mayresult in the charterer having to indemnify theowner for any resulting loss or liability – whichcould include liability for fines.Poor stowageDamage to the ship resulting from stowagecontrary to the terms of the charter party, wherethe charterer is responsible for loading andstowage of cargo.Hazardous or dangerous cargoDamage to the ship caused by the nature of thecargo itself, such as where cargoes are corrosive orexplosive.For example, BIMCO’s “Fuel Sulphur ContentClause for Time Charter Parties” provides for thecharterer to indemnify the owner for loss orliability arising from a failure to “permit the Vessel,at all times, to meet the maximum sulphur contentrequirements of any emission control zone whenthe Vessel is trading within that zone.”PollutionAlthough most states outside the USA are party tothe CLC (Civil Liability Convention) underwhich tanker pollution claims are channeled solelyto the registered shipowner, if the cause of thepollution is something for which the charterer isresponsible (such as in an unsafe port situation)then the charterer may be obliged to indemnifythe shipowner.Damage to HullThe standard P&I cover that is provided toshipowners excludes cover for damage to theentered ship. However, for the charterer, suchcover can be important because of the variety ofways in which a charterer may become liable fordamage to a ship. Many of the above examples ofsituations which might give rise to traditional P&Iliabilities are also situations where the charteredship may be damaged and the costs thereof may berecoverable from the charterer.Bunker qualityDamage to ship’s engines if inferior bunkers havebeen provided by the charterer. Off-spec bunkerscan cause damage to the ship’s main and auxiliaryengines, aside from many other difficulties such asthat of finding a place to discharge off-spec fuel,diverting for new bunkers, and losses resultingfrom slow speeding where this is necessary.General average and salvage liabilityGeneral average and salvage contributions in respectof loss or damage to the ship, Member’s freight atrisk or Member’s bunkers on board the ship.