Port Agency General Terms

1. GENERAL

1.1 These general terms of port agency (the "Terms") govern the appointment of the Agent by the registered owner, disponent owner, manager, managing agent, master or other person in charge of the vessel, including any charterer appointing the Agent on behalf of the vessel owner under the terms of a charter party (the "Principal"); and the "Agent" means that affiliate of Neptune Fleet Managers Pte Ltd that is operating at the port at which the Principal's vessel is berthed.

1.2 The Agent and Principal shall agree the commercial terms of the Agent's appointment and record this in writing, including confirmation by electronic mail, facsimile or other forms of communication (the "Commercial Terms"). The Commercial Terms and these Terms will together form the port agency agreement between the Agent and the Principal (the "Agreement"). If there is any conflict between the Commercial Terms and the provisions contained herein, the Commercial Terms shall prevail.

1.3 These Terms supersede any earlier terms of business the Agent may have provided previously.

 

2. APPOINTMENT

2.1 From the date of agreement of the Commercial Terms referred to in Clause 1.2 above (the "Appointment Date"), the Principal formally appoints Agent as its port agent to act on its behalf in relation to the vessel in accordance with the terms and conditions of the Agreement.

 

3. AGENT'S DUTIES

3.1  Unless agreed otherwise by the parties, the Agent shall:

 (a) Provide those services a port agent would ordinarily provide in the course of good industry practice (the "Services");

 (b) Exercise due care and diligence in performing the Services in accordance with the terms and conditions of the Agreement;

 (c) Have authority to place orders with suppliers and contractors on the Principal's behalf, however in no circumstances shall the Agent become liable in respect of the negligent performance of such suppliers and contractors nor in any respect for any payment due to such suppliers and contractors;

 (d) Have authority to appoint sub-agents to perform services on the Principal's behalf. However, the Agent will not be responsible for the negligent acts or defaults of sub-agents unless the Agent has failed to exercise due care in the appointment and supervision of such sub-agents. Notwithstanding the foregoing, the Agent shall be responsible for the acts of his subsidiary companies appointed within the context of this sub-clause 3.1(d); and

 (e) Strictly observe the shipping laws and regulations of the country in which the Services are being carrying out.

 

4. PRINCIPAL'S DUTIES

4.1 The Principal shall at all times during the continuance of the Agreement act dutifully and in good faith in accordance with the terms and conditions of the Agreement which shall include, but not be limited to, the following:

 (a) Making payments when such payments are due and payable;

 (b) Promptly providing all documentation that the Agent may require in order to fulfil its Services;

 (c) Giving full, timely and accurate information regarding the vessel's schedules, ports of call and line policy insofar as it affects the Agent's Services; and

 (d) Providing any other support or assistance that the Agent may require in order to fulfil the performance of its Services under the Agreement.

 

5. REMUNERATION

5.1 In consideration of the Services performed by the Agent in respect of a vessel's call at port, the Principal shall pay the Agent a fee (the "Fee") in the amount and in the manner set out in the Commercial Terms that form part of the Agreement.

5.2 The Agent shall also be entitled to reimbursement by the Principal of all reasonable out of pocket expenses incurred by the Agent in performing the Services and shall be entitled to payment by the Principal of an additional fee in the event of:

 (a) unexpected occurrences creating additional work or delay to the vessel; or

 (b) if the Principal requires the Agent to perform duties that are outside of the scope of the Agreement.

 until such payment has been received by the Agent.

5.3 The Principal shall pay all monies due and payable to Agent within 30 calendar days of the receipt of an invoice from the Agent.

5.4 The Principal shall pay by telegraphic transfer to the Agent's bank account no later than one week prior to the arrival of the vessel at port such sum as the Agent may request as an advance on port disbursements which the Agent estimates will be incurred on the Principal's behalf.

5.5 If the Principal fails to make any payment in accordance with Clauses 5.3 and 5.4, the Agent may either:

5.6 The Agent shall be entitled to deduct from any monies held by the Agent on behalf of the Principal as part of its Services, such amounts as are required to cover all past and current payments due to the Agent from the Principal.

5.7 The Agent shall use reasonable efforts to ensure that the proforma disbursement account is as accurate as possible. The proforma disbursement account is, however, only an estimate and the actual disbursements that are incurred by Agent and set out in the final disbursement account at the end of the Services may for various reasons beyond the Agent's control vary from the proforma disbursement account. The Principal hereby agrees to be liable for and to pay in accordance with these Terms the full amount described and shown in the final disbursement account.

5.8 If the Principal fails to make payment in full on the relevant due date of any sums due and payable to the Agent in accordance with the Agreement, the Agent shall be entitled to recover all costs of collection (including reasonable attorney's fees) and interest on such sums outstanding at the rate per annum of 2% above LIBOR applicable during the period from such due date up to and including the date of payment.

5.9 If the Principal disputes all or part of any invoice, it shall return the invoice to the Agent specifying in writing the reasons for the Principal's rejection within seven (7) calendar days of receipt of such invoice. The Agent may then either:

 (a) send an amended invoice to the Principal; or

 (b) issue a credit note to the Principal; or

 (c) send the Principal an invoice covering the undisputed part. The invoice for the disputed part may be sent, as the case may be, after the settlement of the dispute.

 The Principal shall be obliged to pay only the undisputed part of a disputed invoice. The Principal's failure to reject an invoice within the seven (7) day period referred to in this clause 5.9 shall mean that the whole of such invoice shall be deemed undisputed.

5.10 Where the Agent has incurred costs in anticipation of a vessel's call which is subsequently cancelled, or for which the Agent is not appointed, then the Agent shall be reimbursed by the Principal in respect of all such costs incurred.

 

6. LIABILITY AND INDEMNITIES

6.1 The Principal agrees that the Agent's total aggregate liability to the Principal, whether for breach of contract, tort (including negligence and misrepresentation), breach of statutory duty or otherwise arising out of or in connection with the Agreement and whether related to any act, error, omission, statement or delay in acting committed by the Agent, its directors or employees shall not exceed the amount equal to ten (10) times the Fee. In no circumstances shall the Agent be liable for any indirect or consequential losses suffered by the Principal arising out of or in connection with the Agreement.

6.2 The Principal shall protect, defend, indemnify and hold the Agent harmless from and against any and all claims, liabilities, charges, losses, damages and expenses of every kind and nature in respect of:

 (a) personal injury or death of any member of the Principal Group or of any third party;

 (b) loss or damage to any property of the Principal Group or of any third party,

 arising in connection with the Agent's performance of its Services under the Agreement; and "Principal Group" means the Principal, the crew, owners, operators, charterers, all of Principal’s affiliates, contractors and their contractors and subcontractors of any tier and the respective agents, officers, directors and employees of all the above. This indemnity shall not extend to matters arising by reason of the negligence or wilful misconduct of any member of Agent Group.

6.3  The Agent shall protect, defend, indemnify and hold the Principal harmless from and against any and all claims, liabilities, charges, losses, damages and expenses of every kind and nature in respect of:

 (a) personal injury or death of any member of the Agent Group or of any third party;

 (b) loss or damage to any property of the Agent Group or of any third party,

 arising in connection with the Agent's performance of its Services under the Agreement; and "Agent Group" means the Agent, its affiliates, contractors, officers, directors and employees. This indemnity shall not extend to matters arising by reason of the negligence or wilful misconduct of any member of Principal Group.

6.4 The Principal hereby agrees that no claim or allegation of any kind shall be made against any of the Agent's directors, officers or employees (hereinafter collectively called the "beneficiaries") for any loss, damage or delay of whatsoever kind arising directly or indirectly from any negligent act, error or omission of the beneficiaries in the performance of the Services the subject of the Agreement. The beneficiaries shall have the benefit of this clause and in entering into the Agreement the Agent, to the extent of this provision, does so not only on its own behalf, but also as agent or trustee for the beneficiaries, who shall to the extent of this clause only be or be deemed to be parties to the Agreement.

6.5 The Agent shall perform its Services with due dispatch but shall not be liable for any loss or damage arising from any delay which the Agent could not reasonably prevent.

6.6 The Agent shall be discharged from all liability whatsoever to the Principal unless a claim is submitted within one year of the occurrence of the originating event upon which the claim is made.

 

7. PROVISION OF INFORMATION

7.1  The Principal agrees to provide the Agent with all information that is reasonably required for the Agent to perform its Services and to ensure that such information is, and remains, true and accurate in all material respects and is not misleading. Unless agreed otherwise, the Agent will not check the accuracy or completeness of such information. .

7.2  The Principal is responsible for ensuring that it has all necessary rights to supply the Agent with the information it provides and that the Agent's use of that information will not infringe the rights of any third party or result in a breach of any law, rule or regulation. The Principal shall indemnify and hold harmless the Agent (and any of its affiliates) from and against all loss or damage arising from claims, actions, proceedings or demands due to such infringement of third party rights or breach of law, rule or regulation.

7.3  The Agent's primary duty in respect of the exchange of ISPS Code compliance information between the vessel and the shore authorities is limited to correctly notifying the Principal of the information required, the date by which it is required and the address to which it must be sent. If the Agent is additionally required to pass the information on, its liability is extended to include ensuring the information provided by the vessel is correctly lodged with the relevant shore authority within the required time limit, provided the information is provided by the Principal to the Agent within a reasonable time prior to such time limit. Any failure by the Agent to undertake these duties with the utmost skill and care can render it liable for any delay resulting therefrom. Under no circumstances, however, will the Agent be liable for the accuracy of the information provided by the Principal, or if it fails to make the information available to the Agent within the required time limit or for any other error or failure that may occur which is beyond the Agent's reasonable control.

7.4  All communications between the Agent and the Principal will be treated by the parties as confidential and will be disclosed to third parties only with the written consent of the other party or if required by law.

 

8. FORCE MAJEURE

8.1 Except for obligations to pay any amount due, neither the Agent nor the Principal shall be liable in any way for failure to perform its respective obligations under the Agreement if the failure is due to causes outside the reasonable control of the party which has failed to perform.

 

9. TERM

9.1  The Agreement shall commence on the Appointment Date and shall, unless terminated at an earlier date pursuant to the Agreement, terminate automatically without notice on the date the vessel leaves the port.

9.2  Either party has the right at any time after the Appointment Date to terminate the Agreement provided it shall give thirty (30) calendar days written notice to the other party.

9.3  Upon termination of the Agreement for whatever reason, the Principal will pay to the Agent all outstanding fees and disbursements due and payable as at the date of termination. All accrued rights and liabilities under the Agreement shall survive and remain in full force and effect notwithstanding termination.

 

10. ENTIRE AGREEMENT

 The Agreement represents the entire understanding between the parties and supersedes any and all previous discussions correspondence understandings and communications (whether written or oral) between the parties with respect to the subject matter hereof.

 

11. VARIATION

 The Agreement may be varied only by a document signed by both of the parties.

 

12. WAIVER

12.1  A waiver of any term, provision or condition of, or consent granted under, the Agreement shall be effective only if given in writing and signed by the waiving or consenting party and then only in the instance and for the purpose for which it is given.

12.2  No failure or delay on the part of any party in exercising any right, power or privilege under this agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

12.3  No breach of any provision of the Agreement shall be waived or discharged except with the express written consent of the parties.

12.4  The rights and remedies herein provided are cumulative with and not exclusive of any rights or remedies provided by law.

 

13. COSTS

 Each of the parties shall bear its own legal, accountancy and other costs, charges and expenses connected with the negotiation, preparation and implementation of the Agreement and any other agreement incidental to or referred to in the Agreement.

 

14. ASSIGNMENT

 No party may, without the prior written consent of the other, assign the benefit of all or any of its obligations under the Agreement, nor any benefit arising under or out of the Agreement.

 

15. SEVERABILITY

 If any provision in the Agreement is or becomes invalid, illegal or unenforceable then it shall, to the extent required, be severed and shall be ineffective and the validity of the remaining provisions shall not be affected in any way.

 

16. NO PARTNERSHIP

 Nothing in the Agreement and no action taken by the parties pursuant to the Agreement shall constitute, or be deemed to constitute, the parties a partnership, association, joint venture or other co-operative entity.

 

17. DISPUTE RESOLUTION AND GOVERNING LAW

17.1 The Agreement shall be governed by and construed in accordance with the laws of Singapore.

17.2  Any dispute arising out of or in connection with the Agreement, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in Singapore in accordance with the Arbitration Rules of the Singapore International Arbitration Centre ("SIAC Rules") for the time being in force, which rules are deemed to be incorporated by reference in this clause. The Tribunal shall consist of three arbitrator(s) and the language of the arbitration shall be English.

 

Copyright © Neptune Fleet