In the ever-evolving world of shipping law, war clauses remain fundamental to protecting shipowners and ensuring commercial certainty in times of political instability or conflict. These clauses are designed primarily to restrict charterers from ordering vessels to ports rendered hazardous by war, blockades, or government prohibitions.
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What Are War Clauses?
War clauses operate to ensure that vessels are not exposed to unnecessary danger.
It begins by prohibiting the charterer from ordering the vessel on any voyage that exposes it to war risks, unless prior consent is obtained from the owners. the vessel is not to proceed to or continue at any place deemed dangerous due to:
- Actual or threatened war, hostilities, or warlike operations
- Piracy, revolution, civil war, or commotion
- Sanctions that may expose the ship to penalties, seizure, or interference
- Carriage of goods that risk seizure or penalties by belligerent parties or governments
What are the rights and obligations when a dangerous situation occurs?
A model clause provides:
“No Bills of Lading to be signed for any blockaded port and if the port of discharge be declared blockaded after Bills of Lading have been signed… the Owner shall discharge the cargo at any other port covered by this Charter Party as ordered by the Charterers… and shall be entitled to freight as if the ship had discharged at the port or ports of discharge to which she was original.”
In simpler terms, this clause creates two distinct benefits for the shipowner:
- No obligation to sail to blockaded or prohibited ports.
- Right to discharge cargo at an alternative safe port within the charterparty range if the intended port becomes blocked or prohibited, while still earning full freight.
This framework ensures that shipowners are not financially penalised when avoiding ports that become unsafe due to war or blockade after a voyage has commenced.
Furthermore, Clause 2 of the same model grants shipowners broad latitude to deviate from their contractual route to comply with government orders or to avoid war risks. Specifically, it states:
“The ship shall have liberty to comply with any orders or directions… given by the Government of the Nation under whose flag the vessel sails… or by any other Government… and if by reason of and in compliance with any such orders or directions anything is done or not done, the same shall not be deemed a deviation, and delivery in accordance with such orders or directions shall be in fulfilment of the Contract voyage and the freight shall be payable accordingly.”
This means that if a vessel alters course, calls at a different port, or even fails to deliver cargo to its original destination in compliance with governmental or war risk insurer instructions, such actions will not be treated as deviation or breach of contract. Freight remains payable as if the original contractual voyage was fulfilled.
Another provision might ensure that owners can recover from the charterer any increases in wages, provisions, or other costs arising as a consequence of war risks, thereby maintaining the economic equilibrium of the charterparty despite unforeseen geopolitical challenges.
Some other provision might provide owners with the right to cancel the charterparty in specified events, thereby preserving commercial flexibility. Meanwhile, clarify that any acts or omissions undertaken in compliance with the clause will not be deemed a deviation under the charter – a vital safeguard against potential claims for breach of contract.
Why Are These Clauses Important?
- They provide legal certainty for shipowners in war situations.
- They protect vessels and crews from entering hazardous zones.
- They maintain freight earnings despite necessary changes to voyage plans.
- They reflect commercial realities in times of conflict where ports may become suddenly unsafe or restricted.
Final Thoughts
War Clauses embodies a balanced commercial approach. It protects shipowners from undue exposure to war risks while ensuring that hire payments, insurance rights, and operational flexibility are preserved. For charterers, understanding these provisions is equally essential to avoid issuing unlawful or hazardous voyage orders that breach charterparty terms and trigger significant liabilities.
If you are in the negotiating stage of shipping contracts and need legal advice, you may reach out to Karimi and Associates Law Firm. Our expert lawyers and specialists can assist you in this field of expertise.