A Global Maritime Collaboration
The New York Produce Exchange Time Charter (NYPE) is the world’s most widely used time charter party form for dry cargo. First introduced in 1946, it has been over two decades since the most recent revision of the NYPE, which was completed in 1993. In 2012, SMF came together with BIMCO and ASBA – the copyright holders of the NYPE form – to draft a modern update that would better serve the needs of the 21st century global shipping industry. Here are some of the key highlights of the NYPE 2015.
A “Fit for Purpose” Standard Form
Though widely adopted, earlier versions of the NYPE form were frequently supplemented with extensive rider clauses – leading to a lack of standardisation that could cause key clauses to be overlooked, or to be in conflict with other provisions. The NYPE 2015 improves upon this by incorporating the additional clauses and amendments that are most commonly used into the main body of the contract. This makes the NYPE 2015 more in line with current standard practices, and should eliminate the need for extensive rider clauses.
Greater Choice and Flexibility
The NYPE 2015 offers differentiation between trip and period charters, and includes specific clauses that are designed to deal with issues that may arise with each type. This offers users better flexibility and ease-of-use when adapting the NYPE 2015 to their needs. Other ways that the NYPE 2015 offer greater flexibility is the introduction of an optional Not Always Afloat But Safely Aground (NAABSA) provision, and a clause giving choice of cargo readiness at delivery port or first load port.
Balancing the Needs of Owner and Charterer
The updated NYPE form also takes a more balanced and comprehensive perspective between owner and charterer, with the inclusion of several provisions that give charterers more options for period charters. At the same time, the form offers more protection to owners in the form of the right to withhold performance where there is non-payment of hire, and also the right to suspend service. The NYPE 2015 also facilitates a more seamless delivery of vessels by requiring owners to keep charterer’s notified of approximate and definite delivery dates.
The Asian Choice for Arbitration
By incorporating Singapore alongside New York and London as one of the three named places for arbitration, the NYPE 2015 now offers Asian shipowners the option of world-class arbitration and dispute resolution services at a more convenient location. This provides a more conducive avenue for Asian shipowners to engage in the arbitration process, and addresses the increasing need for an Asian centre for arbitration.