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09 November 2016
On October 15 2015 the Association of Ship Brokers and Agents, the Baltic and International Maritime Council (BIMCO) and the Singapore Maritime Foundation jointly published a revision of the New York Produce Exchange (NYPE) form. This revision comes 27 years after the 1993 revision of the NYPE charterparty form was issued.
In addition to NYPE 1993, earlier NYPE forms – such as NYPE 1946 – are still in use in some trades although typically they incorporate a number of amendments and include extensive additional rider clauses. The drafting committee's aim with the 2015 revision was, in the words of BIMCO, to create a "version of NYPE that will have global appeal and which takes proper stock of the most commonly applied amendments and additional clauses used by practitioners in the dry cargo sector", while also ensuring that the newly incorporated clauses were "relevant, balanced and consistent".
NYPE 2015 is undoubtedly more extensive than its predecessors. While NYPE 1946 contains 28 clauses, NYPE 2015 runs to a total of 57 clauses together with an appendix of four pages where the vessel's description is to be inserted and 32 pages of explanatory notes. NYPE 2015 therefore provides far greater standardisation of commonly used clauses.
In addition to a number of new clauses, the NYPE 2015 form amends standard clauses found in earlier versions of the NYPE form. The most notable changes are as follows:
The form also includes a number of new clauses regarding:
While the detail included in NYPE 2015 is impressive, it remains to be seen whether owners and charterers will make use of the new form. Due to the length of NYPE 2015, using the form is likely to require extensive review work from owners and charterers alike to ensure that they incorporate any necessary amendments to the new form and develop shorter rider clauses which do not conflict with the standard wording.
When reviewing the new form certain points should be borne in mind:
It remains to be seen how the NYPE 2015 revision will be received by the dry cargo industry. However, once the form is taken up by the industry, a number of the new and amended clauses may be the subject of review by arbitration tribunals in London, New York and Singapore.
For further information on this topic please contact Herman Steen at Wikborg Rein's Oslo office by telephone (+47 22 82 75 00) or email (firstname.lastname@example.org). Alternatively, contact Emilie Christiansen at Wikborg Rein's London office by telephone (+44 20 7367 0300) or email (email@example.com). The Wikborg Rein website can be accessed at www.wr.no.
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