ARTICLE
15 July 2025

Update To The Inter-Club Agreement

MM
Montgomery McCracken Walker & Rhoads LLP

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The International Group of P&I Clubs (IG) has announced an amendment to the Inter-Club New York Produce Exchange Agreement 2011 (ICA).
United States Transport

The International Group of P&I Clubs (IG) has announced an amendment to the Inter-Club New York Produce Exchange Agreement 2011 (ICA). The ICA 2025 amendment will take effect on July 14, 2025 and represents only the fourth revision to the ICA since it was first adopted in 1970.

The ICA remains a widely used contractual mechanism for allocating cargo claims between owners and charterers under NYPE and Asbatime charterparties. Its primary aim continues to be the reduction of legal costs, promotion of uniformity, and simplification of cargo claim resolution.

Key Amendments in ICA 2025

Two material changes have been made:

  • Clause 3(c) – Now expressly provides for the recovery of legal, Club correspondents', and experts' costs incurred in defending or settling cargo claims—even where the claim is successfully defended, withdrawn or otherwise not pursued. Costs incurred in making a claim under the ICA or in seeking indemnity under the charterparty remain excluded.
  • Clause 4(c) – Now clarifies that a cargo claim is considered "settled" even if the claim resulted in an adjudication by a court or tribunal, as opposed to a more traditional settlement between the parties, eliminating prior uncertainty on this point.

Applicability

  • ICA 2025 will apply automatically to charterparties entered into on or after July 14, 2025, if they incorporate the ICA.
  • It may also apply to older charterparties that reference "ICA 1996 or any amendments thereto" or where the parties adopt the updated version by agreement or addendum.
  • Notably, the IG recommends universal application of ICA 2025 to all NYPE and Asbatime charterparties, regardless of date, to enhance consistency and certainty in claim handling.

Together, these changes enhance the clarity, predictability, and enforceability of ICA-based apportionments. The amendment is expected to be widely adopted and should strengthen the ICA's continued role as a trusted framework for resolving cargo claims efficiently and fairly.

Recommendations

We advise clients to:

  • Review and, where appropriate, update charterparty forms to reference ICA 2025.
  • Consider incorporating the new language by addendum in existing agreements.
  • Ensure that operational and claims-handling personnel are familiar with the updated clauses.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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