INTERTANKO Vetting Clauses – A Practical Guide

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Published Date

August 2006


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INTERTANKO Vetting Clauses – A Practical Guide

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This is a consolidated reference guide on vetting clauses. It illustrates the legal, operational and commercial implications of the various clauses, offering sound practical advice. It indicates the alternatives that exist and highlights the responsibilities and risks involved in the drafting and acceptance of a vetting clause, as well as the benefits that can be derived from a clause that meets specific requirements.

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It is almost impossible to produce a single, usable, model vetting clause that will satisfy both owners’ and charterers’ needs. To address this issue, INTERTANKO’s Vetting Committee formed a Working Group, with assistance from INTERTANKO’s Documentary Committee and Technical Tanker Committee, to produce this booklet, which offers guidance on vetting clauses for both owners and charterers. It identifies the pros and cons of a range of vetting clauses and also provides guidelines on warranty clauses.

Part I – General guidance on vetting clauses

Part II – Comments on various vetting clauses

Part III – Checklist for vetting clauses

Part IV – Other related INTERTANKO publications

INTERTANKO has for some time been producing model vetting clauses for both time and voyage charter parties. These have been amended on a regular basis as circumstances have changed and they have proved to be successful and of immense value to our members.

 

These clauses are aimed at helping members avoid the difficulties they could find themselves in after having agreed to a strong charterer’s vetting clause that requires the owner to maintain ‘approvals’ by either several named oil companies or in some cases ‘all’ oil companies. In recent years we have seen oil companies avoid issuing ‘approvals’, and thus such onerous charterers’ clauses have become extremely difficult or even impossible to comply with.

 

It has thus become apparent that it is now almost impossible to produce a single, usable, model vetting clause that will satisfy both owners’ and charterers’ needs.

 

INTERTANKO’s Vetting Committee has therefore formed a small Working Group to address this issue, with help and assistance from INTERTANKO’s Documentary Committee and Technical Tanker Committee. The Working Group is of the general opinion that it is probably not possible to produce one clause that meets all the requirements of both the oil and chemical trades. In the main, the problem is the differences between the two trades and also the differences between our own members. Some members are involved in the ‘chartering in’ of vessels, and, as such, desire a strong clause for the charterer that ties into fixed inspections and places the risk of the oil company acceptance onto the owner. On the other hand those members involved exclusively on the owning/operating side of the business wish to see a more relaxed vetting clause with more options and fewer restrictions. The outcome of this Working Group’s work is therefore this booklet, which we hope will offer useful help and advice to all our members, whether they wear an owner’s or a charterer’s hat.

 

In this booklet we highlight, using a selection of vetting clauses that exist today, the pros and cons of each vetting clause. We conclude by offering some guidelines on warranty clauses with particular regard to:

 

  • • A hardship clause if it is not possible to appoint an inspector or an inspection is not possible
  • • Reasonable time frames to allow the inspection to take place
  • • Suitable non-fulfilment elements to be included to protect the charterer.

 

In conclusion the aim of this booklet is to make the reader aware of the alternatives that exist and to understand the responsibilities and risks involved in the drafting and acceptance of a Vetting Clause, as well as the benefits that can be derived from a clause that meets somebody’s specific requirements.

INTERTANKO (the International Association of Independent Tanker Owners) is a trade association that has served as the voice for independent tanker owners since 1970, representing the interests of its Members at national, regional and international levels.

The organisation champions an industry dedicated to support global energy networks by delivering safe, efficient and environmentally sound transport services.

INTERTANKO actively works on a wide range of operational, technical, legal and commercial issues affecting tanker owners and operators around the world. It draws on regular and direct contact with its Members and other industry stakeholders to develop and disseminate information and best practice, essential to the tanker industry.

https://www.intertanko.com/About-Us/

Title: INTERTANKO Vetting Clauses – A Practical Guide
Edition: First
Number of Pages: 26
Product Code: WS1028K
Published Date: August 2006
Binding Format: Paperback
Book Height: 300 mm
Book Width: 210 mm
Book Spine: 3 mm
Weight: 0.15 kg
Author: INTERTANKO

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