SmartCon will be further developed with new features as the technology becomes available. It is designed for use in a broad range of contracts, including arrangements with third-party service providers, such as brokers and agents. The 36 running hours period is designed to deter the charterers from prevaricating unduly over the vessel and potentially preventing the owners from securing suitable alternative employment at the earliest opportunity. The strict contractual obligation to arrange for and maintain insurances on the part of the charterers carries with it a contractual right vested in the owners entitling them to withdraw the vessel if the charterers fail to arrange and keep any of the insurances. It is important to note that in some jurisdictions, such as the United States, the Non-Lien Clause might not be valid because the suppliers will not be aware of specific provisions in the bareboat charter. To be effective, electronic bills of lading should only be used where two conditions are fulfilled. The ballast water issue centers around the fact that there are as yet no type-approved treatment systems for use in the U.
This modification has been introduced to simplify the payment process and to remove the need for a calculation of fractional hire at the beginning of the hire period. Clause 4 Time for Delivery This Clause contains the usual provisions relating to the date before which the vessel cannot be delivered, but now also incorporates an obligation for the owners to exercise due diligence to deliver the vessel no later than the cancelling date. The cross-reference ensures that the charterers do not have to obtain the owners consent to make changes to the vessel required by class. It will require the parties to have plans and procedures in place to protect its computer systems and data, and to be able to respond quickly and efficiently to a cyber incident. Providing the contracts in an editor is a natural extension of that focus. Clause 5 Cancelling The Cancelling Clause now incorporates a time limit of 36 running hours following the cancelling date during which the charterers must decide whether or not to exercise their option to cancel the vessel if it arrives late. In other words, the default position is the conventional paper bill, but the charterer has the option to ask for an e-bill.
A strict, unconditional obligation to pay hire as and when due must, of course, be linked together with a right for the owners to withdraw the vessel if the charterers are in default of payment. Further contracts will be added subject to customer demand. Above all, he wants to communicate effectively and deliver the right information in the right way. Sub-clause c is therefore intended to encourage owners to adopt electronic bills by obliging charterers to hold the owners harmless for any liabilities that would not have arisen had paper bills been used. Although still poses great risks to the maritime industry.
Sub-clause 23 b refers to the Athens Convention Relating to the Carriage of Passengers and their Luggage by Sea, 1974 as the relevant liability regime. It is normal commercial practice in such cases for the owners to maintain the insurances for their own account. Sub-clause 22 b makes the sale of the vessel conditional on the written consent of the charterers and the agreement of the buyer to accept an assignment of the Charter. The provision is designed to cover exceptional situations when for bona fide reasons the charterers' payment is late. The Maintenance and Operation Clause has been restructured to provide, where appropriate, clear sub-heading titles to make the provision easier to read. SmartCon will be further developed with new features as the technology becomes available.
The development of SmartCon was made possible by several recent advances in the Microsoft universe, including the advent of Office Groups. Instead of hire accruing on a lumpsum basis per calendar month from the date of delivery, hire is payable under sub-clause 11 b not less than every 30 running days in advance, from the date of delivery. The solution is called SmartCon, and it makes contractual work easier and more secure. The following Explanatory Notes are designed to provide some background information on the clauses of the various parts of the Charter and a general overview of the amendments made in this revision. The clause distinguishes between termination by default on the part of the charterers, a default on the part of the owners, and extraordinary termination. For the mortgagee, the problem is obvious. Finding an electronic solution acceptable to owners, charterers, cargo interests, insurers and banks that fulfils all of the functions of paper bills has proven to be a daunting task.
Guarantee Works This is self-explanatory. The available eLearning modules will be limited at launch. To try to circumvent this problem Clause 16 proposes an appropriately worded notice to be pinned in a conspicuous place on the vessel during the charter period. It should be noted that the provision states that the vessel is not deemed lost until she become an actual total loss or an agreement has been reached in respect of her loss with her underwriters. Furthermore, the clause requires the affected party to notify the other party quickly, so that they can take any necessary counter-measures. However, the provision in no way detracts from the owners' obligation under Clause 4 Time for Delivery to exercise due diligence to deliver the vessel by the cancelling date, failing which the charterers' right to cancel the Charter accrues automatically. However, by virtue of sub-clause 26 e of the War Clause the owners waive their right to claim a breach.
As discussed above, any attempt to use electronic bills of lading outside a contractual circle is currently unfeasible. Clause 2 Charter Period has been introduced to perform this function. Periodical Drydocking In view of the durable qualities of modern marine coatings and common commercial dry docking practice, the default period between dry dockings has been extended from 18 calendar months to 60 calendar months after delivery, unless the classification society or flag State require an alternative period. An Ocean of Expertise Beyond the business benefits, members enjoy an astonishing array of services. Sub-clause 13 a introduces in lines 361-364 new wording to cover compulsory insurance requirements other than hull and machinery and protection and indemnity risks.
At launch, SmartCon contains the 35 most popular contracts, all ready to go. The clause is also made for use in a broad range of contracts. They run the gamut from piracy reports and industry outlooks to education and eLearning courses, software programs, and emissions and compliance guidelines. The Sub-committee agreed that the existing wording presented the best solution to this problem, but has reduced the time limit for the manifestation of such defects from 18 months to 12 months although the parties are still free to negotiate another period if they so choose. As a result, the consignee under an electronic bill of lading will not, as a matter of law, obtain rights of suit and will not therefore be able to pursue a cargo claim against the carrier. Consequently, the responsibility for maintenance and operation and all costs and expenses arising from these activities rests with the charterers.
In order to solve this problem in a reasonable and equitable manner in the event of new important structural changes becoming necessary and costing more than an agreed percentage as per Box 23, or if left blank then 5 percent of the vessel's marine insurance value, a door should be left open for the renegotiation of the Charter. In some jurisdictions, such as Panama and Liberia, covenants relating to the vessel are incorporated into the mortgage document. It should be noted that Clause 14 has been amended consistent with the changes made to Clause 13 as mentioned in the preceding explanatory note. Specifications and Building Contract It has been found that in a typical financial bareboat charter such as, for instance, in connection with a new-building vessel, the owners should not become implicated in latent defects which may only manifest themselves a long time after delivery from the yard and the repairs of which are thus not recoverable under the building contract; hence the provisions found in sub-clause 1 d of this clause that in regard to repairs or replacements or any defects which appear within the first twelve months from delivery, the owners shall only be liable to the charterers to the extent the owners have a valid claim against the builders under the Guarantee Clause of the building contract. The results allow shipowners and operators to benchmark their performance against the industry average and identify areas for self-improvement. If Clause 14 is agreed to, then Clause 13 Insurance and Repairs is automatically considered deleted.
It requires the parties to have plans and procedures in place to protect its computer systems and data, and to be able to respond quickly and efficiently to a cyber incident. The final paragraph of the Redelivery Clause has been amended to require the charterers to ensure that the vessel's trading certificates, in addition to class certificates, are valid and up to date for the agreed number of months. It is the potential inclusion of a cyber liability clause, however, that Naval Dome sought to highlight. The clause also directs the charterers to include in such documents the usual protective clauses such as the amended New Jason Clause and the Both-to-Blame Collision Clause. This has been done to restrict the scope of application, as there are other marine risks, such as loss of hire, which are not applicable in this context. It should be noted that although sub-clause 1 d has been re-worded to make its provisions clearer, no substantive changes have been made to the text.