As of July 14, 2025, an amendment to the Inter-Club New York Produce Exchange Agreement 2011 (ICA 2011) will be implemented, referred to as the “ICA 2011 (as amended July 2025)”. The ICA is an agreement that regulates responsibility and liability for cargo claims between the shipowner and the charterer.
The main amendment clarifies the term “properly settled or compromised”, which now explicitly includes:
- A judicial ruling;
- An arbitral decision;
- An out-of-court (amicable) settlement.
This adjustment is crucial as it prevents parties from denying the application of the ICA under procedural pretexts. Additionally, an important change in clause 3(c) explicitly states that reasonable legal costs can also be apportioned, even when:
- A claim is withdrawn;
- A claim is rejected;
- A claim is not pursued further.
The condition is that these costs must relate to the primary defence against the claim from cargo interests, not costs for recovering from the other party under the ICA itself. This clarification avoids disputes about whether costs are attributable when a claim is discontinued.
The ICA 2025 does not automatically apply to existing charterparties. Its application depends on the wording in the contract.
The amended ICA applies to charterparties:
- Concluded on or after July 14, 2025, provided they explicitly reference “ICA 2011 (as amended July 2025)”; and
- Charterparties with a general reference to “ICA 1996 or any amendments thereto”.
We recommend explicitly including reference to “ICA 2011 (as amended July 2025)” in new charterparties. The ICA remains a valuable tool to prevent costly disputes and ensure a predictable allocation of cargo claims. NNPC is ready to assist its members with the application of the ICA 2025. For advice or review of your contracts, please contact the claims team at claims@nnpc-marine.com.
