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Saturday, October 20, 2018


ExxonMobil have issued a revised war risk clause, STB special clause 26 (war risks) dated 18 October 2001. Importantly the clause provides that charterers shall pay for any additional war risk premiums or crew bonuses. We welcome the clarification provided in this new provision over clause 28 of ExxonMobil VOY2000. The provision concerning crew bonuses is subject to the proviso that the bonuses shall be of a mandatory nature imposed by a flag state administration or other government to whose laws the owners are subject. The clause reads:


a. Except as provided in paragraph b. below, Owner shall provide and pay for any War Risk Insurance(s) on the Vessel's Hull and Machinery, loss of earnings and detention, crew and their Protection and Indemnity risks.

b. Additional War Risk Insurance Premiums ("Additional Premium") and crew bonuses ("Crew Bonuses") incurred as a result of the Vessel entering an excluded area for the Charterer's purposes under the Vessel's then current War Risk Insurance(s) shall be for Charterer's account, net of all discounts or rebates, provided always that the amount is based on the Insured Vessel Value provided to Charterer prior to fixing, Charterer is given notice of the amount of such Additional Premium and/or Crew Bonuses as soon as possible and, in any event, before such Additional Premium and Crew Bonuses are paid.

c. For the purpose of this Clause, Crew Bonuses are defined as mandatory payments imposed by the government of the state under whose flag the Vessel sails, or other government to whose laws Owners are subject. Any other bonus paid by Owners to the Officers and/or crew in respect of the voyage performed pursuant to this Charter shall be for Owners' account.

d. Such additional surcharges and expenses that are for Charterer's account are payable by Charterer together with freight against Owner's invoice with full supporting documents, including all associated debit and credit notes.

e. The amounts of any present or future discount, or rebate, on Additional Premium refunded to Owner from their War Risk insurers, underwriters or brokers shall, at Charterer's option, be credited or paid to the Charterer in full.

f. In all cases, any premiums and increases associated with Closure insurance, including "blocking and trapping", shall be for Owner's account.