ISPS Code - Time Charter Alert

October 2003

The International Ship and Port Facility Security Code will come into force on 1 July 2004. It will result in increased costs and potential liabilities, the allocation of which will need to be carefully considered by Owners and Charterers.

Any Owner or Charterer entering into a time charterparty extending beyond 1 July 2004 should ensure that they have made adequate contractual provision to address the requirements of the ISPS Code.

It should be noted that US maritime security requirements are different to those of the ISPS Code. If a vessel is to trade to US and non-US ports, Owners/Charterers should consider including a US Security Measures Clause as well as an ISPS Clause.

Any Member requiring assistance in this regard should contact the FD&D Department of the Managers' London Representatives.