Different charter parties impose different categories of clauses, exclusions and limitations based on their requirements and risks. For this reason, both shipowners and charterers should consider seeking expert advice to draft, amend, review or revise their contracts/charter parties.
Due Diligence on Contracts, Performance and Earnings
As part of assisting our clients to manage risk, we are often called upon to review Charter Parties and other contracts such as Pool Agreements, Commercial Management Agreements, Pipeline Supply contracts and the marine clauses in commodity sale and purchase agreements. This ensures contracts are commercially practicable, comprehensive, internally consistent and minimise potential contract risk for our clients.
Due diligence is a valuable risk management tool which aims to identify any potential risks or disadvantages. By conducting due diligence, parties provide themselves an opportunity to uncover contractual issues and unforeseen liabilities and correct them prior to a transaction. Given the multifaceted and complex nature of the maritime industry, a specialized approach is needed which our maritime due diligence experts at the Wade Maritime Group are qualified to handle.
Claims Advisory: Early Neutral Evaluation and Dispute Resolution
As part of minimising contract risk, we ensure that there are clear and unambiguous provisions to cover issues such as laytime and demurrage, custody transfer, documentary requirements and vessel performance. As part of our work on Commercial Operations, we also assist clients with any potential claims following breaches of contractual terms. In this way we aim to assist our clients in preventing Profit Leakage.
Early neutral evaluation is a non-binding Dispute Resolution Method that includes a preliminary assessment of facts, evidence, or legal merits. The goal of early neutral evaluation is to improve communication between disputing parties and provide a “reality check” for everyone involved. During this process, a neutral expert assesses the merits of the case and works with involved parties to come to a clear understanding of the central issues of the dispute.
In a highly confidential process, each party presents the factual and legal basis for its claims and defenses and the evidence upon which those claims and defenses are based to a trusted neutral party with expertise in the substantive area of the dispute. We have the expertise to be this trusted neutral third party and have facilitated several such negotiations.