Counterparty Risk Liens on sub-freight

and sub-hire

Marc Jackson

Notice of Lien 1

Debt must have accrued.

Identify sub-charterers.

Are lien clauses back to back?

What if lien clause omitted from sub-charter?

Notice of Lien 2

Elements of the lien notice

Contracts need to be identified.

As do sums due to owners.

Reference to pertinent charterparty provisions.

Announce the exercise of a contractual lien.

Wordings will vary.

May include indemnity from owner.

NYPE Lien Clauses

NYPE 1946 – Clause 18

“The owners shall have a lien upon all cargoes, and all sub-freights for any amounts due under this charter …”

NYPE 1993 – Clause 23

The owners shall have a lien upon all cargoes and sub-freights and/or sub-hire for any amounts due under this charterparty

BULK CHILE

Chain of charterparties.

1946 lien clause pertinent law incorporated.

Meaning of “sub-freights”.

Appeal?

Protection for Owners

Ensure the clause includes:

HireFreightSub-freightSub-hireand/or demurrage

Counterparty Risk Liens on sub-freight and sub-hire

Marc Jackson