The New York Produce Exchange (NYPE) form 2015

The new version is significantly longer than the previous ones as many rider clauses have been included into the main body of the contract.  This can, of course, work to the advantage or disadvantage of the parties to the agreement. As advantage because an ‘all inclusive’ form gives less chances to miss important issues in the contract but it could be a disadvantage if the parties decide to maintain a group of rider clauses that may contradict with the standard form clauses.

Among the changes, Charterers may pay attention to the following points:

Redelivery

Charterers should be careful when they provide a notice of expected redelivery as this will be considered the actual redelivery date (the last permitted date of redelivery under the Charter party is, therefore, overruled);

Hire Payment

There is no longer any justification to late payment of hire. Under the new form any failure by Charterers to make punctual payment will be considered as a breach. In addition, a failure to pay hire within the grace period will entitle Owners not only to withdraw the vessel but also to claim damages for the loss of the remainder of the Charter Party;

Law and Arbitration

Singapore has been added – next to New York and London- as arbitration forum to show the growth of trading activity in the Far East.  Charterers should not, however, forget to make a choice of law/arbitration unless their intention is to have any potential dispute decided under New York/ US law jurisdiction – which has been set as default.

Charterama recommends all Assureds to familiarize themselves with the content of the new form before using it as base of their agreements. As usual, we remain open to assist in case of any doubts or during the negotiations process of the Charter Party.