COVID-19Handbook

Covid-19 is affecting not just the way that we do business today, but the ways that we will be doing business tomorrow.

We have seen the pandemic produce unprecedented operational challenges for members. Crew changes, quarantine requirements, disruptions and delays, have become day-to-day issues in these difficult times. Whilst the wider long-term effects are more unpredictable, what we do know is that those on board and ashore must put procedures in place to ensure the continuing safety of crew and the ongoing protection of their business activities.

The Swedish Club has put together this handbook to assist those in positions of responsibility at sea and for those supporting them on shore, to provide simple guidance and concise information on understanding and implementing the practices and procedures which are now necessary for safe and successful long-term operations on board ship.

The Swedish Club – with you at all times.

Lars RhodinManaging DirectorThe Swedish Club

COVID-19 Handbook

Contents

Essentials ................................................................................................4

Part one: Keeping safe1. Introduction ......................................................................................72. Keeping your crew safe ..................................................................83. Looking after the mental wellbeing of your crew ..................104. Coming into port ............................................................................135. Visitors to the ship ........................................................................15

Part two: Your club cover1. Your P&I Club cover and contracts of carriage ......................21i. Illness ..............................................................................................21ii. Quarantine restrictions ................................................................22iii. Port restrictions ............................................................................23iv. Delays due to COVID-19 restrictions ........................................23

2. Charter parties and contracts of carriage ..............................24i. Port safety ......................................................................................24ii. Port closure ....................................................................................24iii. Delays ..............................................................................................25iv. Force majeure ................................................................................26v. Recommended clauses................................................................26

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Wash your hands frequentlyRegularly and thoroughly clean your hands using soapand hot water or alcohol-based (at least 65–70%) hand rub for 20 seconds.

Why? Washing your hands with soap and water or usingalcohol-based hand rub kills viruses that may be onyour hands.

Avoid touching eyes, nose andmouth with unwashed hands

Why? Hands touch many surfaces and can pick up viruses.Once contaminated, hands can transfer the virus toyour eyes, nose or mouth. From there, the virus canenter your body and can make you sick.

Practice social distancing Maintain at least 1 metre (3 feet) distance betweenyourself and anyone who is coughing or sneezing.

Why? When someone coughs or sneezes, they spray smallliquid droplets from their nose or mouth which maycontain virus. If you are too close, you can breathe in thedroplets, including the COVID-19 virus if the personcoughing has the disease.

EssentialsGuidelines to reduce transmission are as follows:

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Practice respiratory hygieneMake sure you, and the people around you, follow goodrespiratory hygiene. This means covering your mouthand nose with your bent elbow or a tissue when youcough or sneeze. Then dispose of the used tissueimmediately.

Why? Droplets spread virus. By following good respiratoryhygiene, you protect the people around you fromviruses such as cold, flu and COVID-19.

If you have fever, cough and difficultybreathing, seek medical care earlyAdvice for those ashore would be to stay home if you feelunwell. If you have a fever, cough and difficulty breathing,seek medical attention and call in advance. Follow thedirections of your local health authority. At sea, self-isolation should be considered if exposure is a possibility.

Why? National and local authorities will have the most up todate information on the situation. Calling in advance willallow a telemedicine advisor to help you. This will alsoprotect you and help prevent spread of viruses and otherinfections.

Stay informed and follow advice givenby your healthcare providerKeep up with the latest developments about COVID-19.Follow advice given by your telemedicine service, yournational and local public health authority or your employer onhow to protect yourself and others from COVID-19. For thosethat work at sea, this may be via a telemedicine service.

Why? National and local authorities will have the most up to dateinformation on COVID-19. They are best placed to advise onwhat people should be doing to protect themselves.

In accordance with the ISM Code,shipping companies are required toassess all identified risks to their shipsand personnel and establishappropriate safeguards normallydocumented in their SafetyManagement Systems (SMS). As aresult, your shipping company shouldhave developed for each of its shipsdetailed plans and procedures relatedto different aspects and risksassociated with the coronavirus(COVID-19).

TransmissionHuman-to-human transmission of COVID-19 isunderstood to occur primarily through a personwith COVID-19 coughing and sneezing, anddroplets landing on objects and surfaces aroundthe person. Other people then catch COVID-19 bytouching these objects or surfaces, then touchingtheir eyes, nose or mouth. People can also catchCOVID-19 if they breathe in droplets from aperson with COVID-19 who coughs, sneezes orbreathes out droplets.

Seafarers (on board ship or on leave) shouldinform their healthcare providers if they havevisited an area where COVID-19 has beenreported within the past 14 days, or if they havebeen in close contact with someone withrespiratory symptoms who has been to a placewhich has COVID-19.

SymptomsThe main signs and symptoms of COVID-19include a high temperature and a new continuousdry cough accompanied by fatigue. Othersymptoms reported include loss of smell or taste,sputum production, shortness of breath, achingmuscles and joints, sore throat, and headache.Nausea, stomach upset or vomiting have beenreported in a small percentage of patients.However a significant proportion of individualshave been shown to be asymptomatic, with noobvious signs of the disease.

If seafarers have fever, cough or difficultybreathing it is important to seek medical attentionpromptly.

PreventionThe key to containing this virus is to break thechain of transmission by means of, for example,regular and effective handwashing, socialdistancing, appropriate personal protectiveequipment (PPE) to reduce the chance oftransmission, and self-monitoring.

TreatmentCOVID-19 is spreading with astonishing speed,and research is being carried out around theworld into both treatment and the prospect of avaccine.

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1. Introduction

Part one : Keeping safe

l Only persons cleared by local port officials,authorities and the Master should be allowedon board, including marine/ harbour pilots,technicians, ship agents, etc.

l Limit visitor access to the vessel as much aspossible.

l Crew disembarkation from the vessel whilst inport must be minimised and allowed only inabsolute need situations.

l Minimise interpersonal exchanges with peoplefrom ashore, avoiding contact with those whoshow symptoms of flu or high temperature,and take care of personal hygiene includingmore frequent handwashing, etc.

l Limit, as much as possible, direct access tointernal spaces of the vessel for shore sidevisitors

l If possible, designate a central location/roomwith direct access from the outside and enclosedtoilet to receive authorised persons from shore inorder to avoid unnecessary physical contact andpossible contamination inside the vessel. Theroom should have the minimum of furnishingand be easy to decontaminate with disinfectants.Social distancing MUST be observed. Wipe downareas and items visitors have touched, or mayhave touched, with disinfectant wipes and/orsprays.

l The Master should take precautions tominimise the potential spread of the virusamong seafarers if symptoms appear. Isolatethe seafarer to a location preferably withsegregated ventilation and separate from thecommon areas used by seafarers such asseafarers’ lounge, gym, mess rooms, etc.

l If authorised persons need to enter the vesselensure mutual communication of the safetymeasures each is expecting the other party tofollow.

l Handwashing is the best way to reduce therisk of infection being transmitted from oneperson to another.

l Shipowners must keep up to date with COVID-19 developments.

l Ensure proper training and provide informationand education on the virus for the workforceincluding how the virus spreads, how toprevent the virus and how to dispel myths,fears and misconceptions.

l Keep up to date with details of the affectedareas through the World Health Organization(WHO) or the local Centre for DiseaseControl’s (CDC) disease outbreak updates andmaps.

l Be aware and respect any quarantinerestrictions that any country/port may apply,and of any requirements by Port Health in thisrespect.

l Engage with safety managers and ensurethere is continual and ongoing communicationwith workers, providing updates on theoutbreak and training refreshers and drills asand when required.

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2. Keeping your crew safe

Further informationcan be found in: Coronavirus (COVID-19)Guidanceor Ship Operatorsfor the Protectionof the Health ofSeafarers (see page 27)

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Seafarers working patterns have uniquely preparedthem for the quarantine periods that much of theworld has had to face. However, with newoperating regulations likely to be in place in portsfor some considerable time to come, crews willcontinue to experience disruption to workschedules and shore leave long after the rest of theworld has returned to more regulated way of livingand working.

It is important for those responsible for crews tobe aware of the steps that individuals can take toensure their mental wellbeing, both in a generalsense, and in the new environment in which we arenow working. The advice below should be sharedwith the crew, and steps should be taken to makesure it is followed.

Scenario 1The vessel is quarantined

l Have enough activities to make time pass.l Balance those activities - exercise and sport,

connecting with others, and taking quiet time.l Build relationships on board if you can.l Make the most of the professional support that

is available remotely from port e.g. ship visitors,chaplains etc.

l Be kind to yourself.

Scenario 2Unable to land during port closure

In this circumstance anxiety levels may be high.There is the uncertainty of not knowing when youwill dock, and if you are due for a crew change whenit will begin? People are all different in how theymanage worry and there is no one size fits allsolution. Distract yourself and try things you haven’ttried before – help others - engage with the crew.You are all quite literally in the same boat.

Remember you are not alone, and the entireshipping community is working constantly toensure crew wellbeing in relation to extended timeat sea due to COVID-19.

Scenario 3Worried about family and friends

This is a natural human response to perceiveddanger, and there is the urge to rush home to bewith your loved ones. It is important to take abreath and consider that such action may putthemselves and yourself at risk. Be aware that youcannot change the situation they find themselvesin, and knowing you are safe on board can be agreat consolation to your family. Wait until the timeis right and safe transportation is available beforeyou plan to return home.

It is also a good idea to restrict your news to theessentials. Don’t be over focused on the virusthreat or the economic situation – there’s a lot ofnews out there and much of it is speculation.

Scenario 4Worried about your job?

This is a perfectly natural fear. This crisis will end,and the industry will face different challenges. Theshipping industry has shouldered many ups anddowns over the years, but with 90% of goodstransported by sea, the world will need shipping fora long time to come.

With thanks to Dr Kate Thompson, ISWANwww.seafarerhelp.org

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3. Looking after the mentalwellbeing of your crew

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Different countries, and even different portswithin those countries, are taking their owndecisions on how to manage port access safely.Restrictions can change on a daily basis and maywell continue to do so. This can make itextremely difficult to plan port calls and to make awell informed and safe port entry.

The Swedish Club can help members meet thischallenge. The Club’s TELP (Trade Enabling LossPrevention) programme ensures that shoreoffices are automatically sent the relevantinformation that they need to help the Mastermeet any restrictions that have been put in place,in advance of port entry, giving valuable time tomake the necessary preparations.

In addition, The Swedish Club’s COVID-19 PortInformation Portal links visitors to reports fromClub Correspondents around the world. This canbe accessed athttps://www.swedishclub.com/loss-prevention/health/coronavirus-port-information/

CommunicationThere are differing views globally regarding whatrisk-based measures are appropriate during thepandemic and therefore you will encounterdifferent procedures being implemented relatingto interaction, personal protective equipment(PPE), social distancing, hygiene and testing.

As part of the risk management and controlprocess it is recommended that prior to arrival inport the ship communicates its requirementsrelated to COVID-19 risk management to all theanticipated service providers and port officialsexpected to attend on board during the port call,which may be coordinated through the ship’s portagent if appropriate.

It is further recommended that prior to arrival inport the shore-based service providers and portofficials communicate their requirements relatedto COVID-19 risk management to the ship, againthis may be coordinated by the ship’s port agent ifappropriate.

IllnessYou must report any cases of illness indicative ofCOVID-19 infection on board as early as possiblebefore arrival to the relevant authority in the port.

Performing a crew change Extensive advice has been published by IMO toallow your shore office to implement thenecessary procedures to ensure a safe crewchange.

Further information can be found in: IMO CircularLetter No.4204/Add.14 COVID-19 – Recommended framework protocolsfor ensuring safe ship crew changes (see page 27)

4. Coming into port

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The COVID-19 pandemic has created issuesrelated to the shipboard interface betweenseafarers and shore-based personnel during portcalls. These issues are often related to the ship’screws and shore-based workers, such as agents,inspectors, pilots, stevedores, surveyors etc., asindividuals may be following different - andconflicting - advice to protect themselves fromthe virus. Shore based workers are being givenguidance by national Administrations, localauthorities, professional organisations andemploying companies, which may differ from theadvice being supplied to seafarers by flag Statesand shipping companies. This can mean that

both parties can have false expectations of theother, leading to anxiety and potential conflict.

Such differences make communication betweenship and shore side essential, both prior toentering port and when berthed.

The shipping industry has published a ‘Heirarchyof controls’ to assist the Master in making thecorrect decisions at the correct times, tominimise the risks to crew. It is designed to helpthose from ship and shore to reach agreement onthe safety measures each is expecting the otherparty to follow.

l Minimise the number of persons attending.l Limit interaction with crew members to

those involved in performance of duties onboard.

l Use outer walkways rather than accessthrough the crew accommodation.

l Limit time inside crew accommodation tothe absolute minimum necessary toperform duties on board.

l Do not shake hands, use a wave, a nod or abow.

l Provide sanitising stations at appropriatelocations e.g. the ship’s gangway, entrypoints to accommodation, the bridge,control rooms.

l Follow general COVID-19 guidance - maintainsocial distancing, frequently clean your handswith soap and hot water for at least 20seconds or use an alcohol-based hand rub,avoid touching eyes, nose and mouth.

l In the 14 days following a ship visit, if eitherany shore-based person attending onboarda ship or any of the ship’s crew develop theCOVID-19 symptoms, there is then a moralduty to contact those who may have beeninfected as a result to disclose thisinformation.

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5. Visitors to the ship

Simple precautions

If attendance on board a ship is unavoidable, the following are some simplesteps and precautions that should be taken:

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Elimination of the hazard is the mosteffective measure to reduce risks.

Work on board should not be conducted ifthere is a safer method to undertake the task,such as not going to a ship. In a number ofinstances e.g. conducting audit, surveys,inspections and training, remote possibilitiesexist which may eliminate the need to go onboard or reduce the numbers of personnelneeding to attend.

l Is attendance on board necessary at thistime?

l Can the work be undertaken remotely? l Can the work be postponed?

If attendance on board cannot be eliminated,then can the risk be reduced? For example,can numbers attending be reduced and/orcan part of the work normally conducted onboard be reduced e.g. can review ofdocuments and interviews etc. be conductedremotely?

Can attendance on board be reduced? Where it is not possible to fully eliminatethe hazards, the risk could be reduced byminimising the onboard element of thework.

l Can the numbers of persons attendingon board be reduced and/or the durationof time spent on board be reduced?

l Can part of the work be undertakenremotely e.g. visual inspections,witnessing drills, interviews?

l Is it necessary to attend on board inperson or can meetings be set upremotely to reduce numbers attendingand reduce duration?

l Can information be provided for remotereview to reduce shipboard attendance?

Once attendance on board has beenreduced as far as possible, thenconsideration should be given to how tocontrol the remaining risk.

1.Eliminate 2.Reduce

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If onboard attendance of shore-basedpersonnel cannot be eliminated,communicate and understand allparticipant requirements.

Ensure requirements of each party, the shipand the shore-based organisation havebeen communicated in good time to eachother and are assessed and understood.

If there are differences in requirementscontrol measures should be agreed andunderstood by all parties prior to theshipboard intervention taking place.

l Have the ship’s and shore-basedorganisations requirements related torisk management and control of COVID-19 been communicated in good time toall parties prior to arrival? It is envisagedthat the ship’s agent will need to play animportant role in this regard.

l Are the requirements of each partyunderstood by the other parties?

l Are requirements aligned e.g.requirements for the use of PPE? If riskmanagement and requirements of anyparty are not aligned or not understood,then additional administrative controlmeasures may be necessary.

If the requirements of each party, the shipand the shore-based organisation have beencommunicated to each other and assessed,and are either not understood or there aredifferences then administrative controlmeasures need to be taken so that allrequirements are understood and so thatrequirements can be mutually agreed andunderstood by all parties prior to theshipboard intervention taking place.

If the control measures of the ship and theshore-based organisation are not initiallyaligned or not fully understood, identifyactions required to rectify the situation.

Considerations should include: l Does additional explanation of

requirements need to be provided? l If requirements are not understood and or

aligned, can control measures beimplemented through clarifyingrequirements and or agreeing mutuallyacceptable requirements?

l What protective measures are in place onboard and for the attending personnel?

l Are alternative measures acceptable e.g.ship’s provision of personal protectiveequipment (PPE) to shore-basedpersonnel?

l Can social distancing be maintained? l Can entry into crew accommodation

spaces be avoided/minimised?

Once mutually acceptable requirements thatdiffer to normal practice for either party areagreed the requirements concerned should beclearly communicated and agreed by allparties impacted i.e. all ships’ crew and allshore-based participants.

3.Communicate 4.Control

Understand what PPE is required and expected tobe used by crew and shore-based personnelduring attendance on board, and at what times.Remember, your first contact may take placebefore you berth, when the pilot embarks.

The following should then be assessed:

l Is the agreed PPE available to both parties? Ifnot, can it be provided by the other party ifnecessary, either prior to or at the time ofboarding?

l Does available PPE comply with appropriaterecommended specifications and is it compat-ible with the other PPE and equipment to beworn during the intervention. Does the pro-vided PPE allow for the intended work to becarried out effectively?

l Is the PPE sterile, where applicable? l Has the user been instructed how to inspect,

wear, use and dispose of the PPE?

Using PPE

You should know how to use the PPE you aregiven.

If you are required to wear a mask in accordancewith advice from your shipping company or bynational authorities it is important for the crew tounderstand and follow best practice in how towear, remove, and dispose of the mask and forhand hygiene after removal.

l If wearing a face mask, be sure it covers yourmouth and nose.

l Do not touch a face mask once it is on. l Immediately safely discard single-use masks

after each use. l Clean your hands after removing masks.

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Personal protectiveequipment (PPE)

Further informationcan be found inCoronavirus (COVID-19) –Guidance forensuring a safeshipboard interfacebetween ship andshore-based personnel(see page 27)

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Part two : Your Club cover

1. Your P&I Club cover and contracts of carriage

(i) Illness

There is an outbreak of COVID-19 amongst thecrew on board your vessel.

The member is covered for the liability which itincurs under the crew contracts to pay damages orcompensation for the illness or death from theinfection of any member of the crew of the enteredvessel, including costs for hospital medical andrepatriation, or funeral or other expenses incurred inrelation to any infected crew member who is onboard the entered vessel or proceeding to or fromthat vessel under a contract in force.

Reasonable disinfection costs of the entered vesselare also covered as well as additional costs orexpenses incurred by the member as aconsequence of an infectious disease such asCOVID-19.

Cover will not be engaged, however, for costsincurred as a result of mere suspicion of infectionor routine precautionary measures if there has notbeen an outbreak of the disease on board theentered vessel. These are regarded as operationalcosts.

There is also cover for a crew member whocontracts COVID-19 in transit to join the vessel orduring repatriation after disembarking (includingwhile under quarantine whilst under a contract inforce).

It should be noted that there are complexlogistics, administrative difficulties and, in somecountries, an uncompromising and harshapproach by the authorities which can prevent or

inhibit the ability to provide medical aid to thecrew on board the vessel or ashore or carry outcrew changes. The Club will do its utmost toprovide advice and assistance to the member forsuch matters, drawing on the experience andknowledge which it has developed over the pastfew months as well as deploying the assistanceof its network of local correspondents.

A crew member becomes gravely ill with COVID-19 symptoms during a laden voyage and it is decided to divert the vessel to a port toprovide medical care.

The carrier is likely to be permitted to make thedeviation under the Hague or Hague Visby Ruleson the grounds that it is an attempt to save life atsea or reasonable, and as such will not itself be abreach of the contract of carriage, subject to thequestion of unseaworthiness (discussed below).

The carrier remains obliged to continue to thedischarge port after the diversion. Depending onsafe manning requirements, it may be necessaryto replace the sick crew member to continue withthe necessary complement of crew.

There is P&I cover for fuel, insurance, wages,stores, provisions and port charges attributable tothe diversion, in excess of those which wouldhave been incurred but for the diversion, providedthat such costs and expenses are incurred withthe approval of the Club. In addition, the sick crewmember’s medical, hospital and repatriationexpenses are covered.

If there is any doubt as to whether the diversion isa lawful deviation, the Member should contact theClub and discuss the option of taking out

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Shipowners Liability (SOL) cover for unauthoriseddeviation.

There might be some practical constraints indisembarking the crew member at the nearestport such as: local regulations prohibiting thecrew member to come ashore; complexprocedural/administrative requirements to becompleted in advance; unsuitable or inadequatelocal medical facilities or repatriation capacity.

The Club can assist with assessment of the mostsuitable disembarkation port by obtainingguidance from local correspondents about suchmatters if the member provides adequate noticeand sufficient details of its intentions.

A crew member who has signed off issubsequently diagnosed with COVID-19.

Usually a member will not be liable for the illhealth of a crew member who has signed offunless the illness was contracted in the course ofemployment (including in transit to or from thevessel) in which case the member may be liablefor the cost of medical care and compensationunder the terms of the crew member’semployment.

There is P&I cover for the member’s liability for thecost of medical care, expenses and compensationfor the illness and, in the sad event of the infectionbeing fatal, funeral expenses. There is no fixedapproach as to how the Club may assess theincubation period to determine the likelihood ofpost-disembarkation Coronavirus illness beingattributed to the period of employment.

A visitor on board your entered vessel, such as asuperintendent or surveyor, contracts a COVID-19infection while on board the vessel.

Usually third-party visitors are permitted to boardvessels only upon signing a form ofwaiver/indemnity which acknowledges that theyare boarding at their own risk and waive any rightto claim damages for personal injury or death. Insome jurisdictions, however, such waivers arerendered invalid by statute and the member maybe held liable to the visitor for the consequencesof infection by COVID-19. Also, superintendents

may be engaged in terms which enable them tobring personal injury claims against the member.

There is P&I cover for liability to paycompensation for personal injury, illness anddeath of any persons on board or in relation to theentered ship if it is proved (the burden of proofbeing on the claimant) that it was caused bynegligence on behalf of the member (in additionto cover in relation to crew and passengers).

(ii) Quarantine restrictions

There is cargo damage as a result ofdeterioration due to delay from quarantinerestrictions imposed at the discharge port due tocrew infection (actual or potential).

The carrier may be able to rely on exceptions toliability for cargo damage pursuant to Article IVrule 2 (g) (‘restraint of princes’) or (h) (‘quarantinerestrictions’) of the Hague and Hague VisbyRules. This is subject to the question of whether,when the voyage began, the vessel wasseaworthy in that its crew did not suffer fromphysical disability or incapacity as to preventthem from performing their duties competently. Itis possible in principle for infection of the crew tomake a vessel unseaworthy (prior to the HagueRules it was held by the English Courts that avessel was unseaworthy because of its call at aport with a particular infection problem leading toquarantine restrictions).

Unseaworthiness is a breach of Article III rule 1unless the carrier establishes that it occurreddespite the exercise of due diligence. In the caseof crew infection resulting in quarantine delays, ordeviation to land a sick crew member, this mayinvolve examining extent of the sanitarymeasures on board the vessel to check andsafeguard the crew from infection by reference tostandard industry practice.

There is P&I cover for the member’s liability forcargo damage resulting from breach of thecarrier’s unseaworthiness obligations under thecontract of carriage.

Expenses and costs (such as payment of wages,accommodation and subsistence allowances) areincurred as a result of the crew being held inquarantine as a precautionary measure whenthey are in transit on their way to board theentered vessel or in the course of repatriationafter they sign off.

In the absence of such matters being theconsequence of the occurrence of COVID -19 onboard the entered vessel they will not be coveredby P&I. These expenses are considered asoperational costs. There would be an exceptionfor a crew member who became infected while inquarantine (as covered above) or who has to berepatriated due to failing a health check in theembarkation port prior to boarding (in which casethe cost of repatriation is covered).

(iii) Port restrictions

Restrictions at the intended discharge portprevent the vessel from calling there to dischargecargo.

If it is not possible for the vessel to safely reachthe nominated discharge port and the bill oflading terms (either expressly or by incorporationof the terms of a charter party) include aprovision which gives the carrier liberty todischarge the cargo at an alternative port (forexample the BIMCO clauses for infectious orcontagious diseases, or a clause permittingdischarge at a port ‘so near thereto as she maysafely get’) the carrier may do so provided thatthe cargo can be safely delivered to theconsignee at that alternative port. Otherwise, allthe parties involved may wish to consider makingan agreement with the carrier for switching thefull set of original bills of lading with replacementbills nominating the alternative port.

There is no cover for liabilities arising fromdelivery of cargo at an uncontractual dischargeport. It is important for the member therefore tobe certain that there is adequate liberty under thecontract of carriage to discharge at an alternative

port or to be certain of the integrity of switch thebills of lading. It is prudent for the member to alsoobtain a Letter of Indemnity (‘LOI’) to cover therisk of wrongful discharge in such circumstances.

(iv) Delays due to COVID-19restrictions

COVID-19 restrictions delay the bills of lading intransit and the vessel is ready to discharge thecargo before they can be presented.

The carrier will be exposed to mis-delivery claimsif the cargo is discharged without presentation ofan original bill of lading regardless of the fact thatthe non-production was due to restrictionscaused by the pandemic. The carrier might,however, have agreed a term in the relevantcharter party by which it is contractually obligedto discharge the cargo against provision of an LOIin an agreed form.

There is no cover for liabilities arising from deliveryof cargo without production of original bills oflading. It is important for the member therefore toensure that the terms of the LOI adequately coverits exposure for mis-delivery of the cargo and issatisfied that the guarantor issuing the LOI is ofadequate financial standing to meet its potentialindemnity obligations under the LOI.

The crew who are due to sign off are obliged toremain on board the vessel because of travelrestrictions or logistical problems due to COVID-19, resulting in the member incurring additionalcosts for the crew contract extensions or crewoverlap.

The costs are operational and are not covered.The member will, however, be liable for any illnessor injuries which occur to the overstaying crewduring the extended period while the crewcontract remains in force.

*Please note that in all scenarios reference to Clubcover is always subject to the specific terms of entry(including deductible) for the entered vessel and themerits of each individual case.

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(i) Port safety

Time charterers may not order a vessel to anunsafe port in breach of an express or impliedwarranty in the charter party. The test is whetherat the time when the order is given the vessel canreach it, use it and return from it without beingexposed to dangerous features that are not theresult of an abnormal occurrence. There is alsoan obligation to change voyage orders if the portsubsequently becomes unsafe before the vesselreaches it.

In some charters (the Baltime form, for example),there is an express prohibition on the chartererordering the vessel to a port where fever orepidemics are prevalent. Where there is noexpress provision such as that, however, there islikely to be substantial doubt as to whether thesafe port warranty permits the rejection of anorder by reference to concerns about Covid-19. Itinvolves questions of fact and law.

Case law

Generally, case law deals with the risk of physicaldamage to the vessel or detention due to politicalrisks. In theory it is conceivable for a port to beunsafe if the spread of infection at the port wouldput vessels at risk of being disabled by crewsickness or would cause vessels calling at theport to be barred or detained at other ports.

Such scenarios, however, seem unlikely inpractice: health risks can be avoided if the crewtakes proper and effective precautions. Althoughvessels might be subject to quarantine delays atsubsequent ports, it is unlikely that they will bepermanently blacklisted, detained or impounded.Also, it is questionable whether an outbreak ofCOVID-19 would be a feature of the affected port,rather than an abnormal occurrence.

Individual circumstances

Each case will be decided on its specific factsand will require careful consideration bearing inmind that the refusal of a legitimate order canconstitute a repudiatory breach of the charter.Aside from that, if the vessel is laden, the ownerwill be subject to separate obligations to theshippers/consignees under the bill of ladingcontract to deliver the cargo at the contractualdischarge port.

Time charters

If an owner accepts a time charterer’s voyageorders in full knowledge of the unsafe features ofthe nominated port the owner may have waivedthe right to refuse to obey the order. This will notnecessarily mean that the owner has waived theright to damages for breach of the safe portwarranty or an indemnity for complying with thecharterer’s orders.

Voyage charters

The position is different for voyage charters,where the port has already been nominatedwithout an express warranty of safety. Thegeneral view is that there is no implied warrantyof safety under a voyage charter, and thecharterer is not under a duty to re-nominate ongrounds that the nominated port is unsafe.

(ii) Port closure

Time charters

If COVID-19 results in the closure of a port tomarine traffic it will not be possible for a vesselon time charter to perform the charterer’s order toload or discharge cargo at the port and thecharterer should give replacement orders.

2. Charter parties and contracts of carriage

Voyage charters

In a voyage charter if the closure prevents thevessel from arriving at the port to load cargobefore the end of the laycan period the likelyoutcome will be that the charter will be cancelled.If the discharge port is closed there will probablybe a liberty which permits discharge of the cargoat some other port (e.g. ‘so near thereto as shemay safely get’).

Owner’s protection

Also there is some protection for the owner inthat situation under Article IV(2) of the Hague andHague-Visby Rules (if incorporated into thecharter) which states that neither the carrier northe ship shall be responsible for loss or damagearising or resulting from: (h) quarantinerestrictions; (j) strikes or lockouts or stoppage orrestraint of labour from whatever cause, whetherpartial or general; (q) any other cause arisingwithout the actual fault or privity of the carrier.

(iii) Delays

Delays in port to vessels in or arriving fromaffected areas might arise in relation to grantingfree pratique (the ‘licence’ given to a ship to entera port on the assurance that she is free fromcontagious diseases), the availability of pilots, orquarantine arrangements. Precautions thatowners may take to minimise the risk of suchdelays include making a pre-arrival declaration ofhealth and documenting measures taken onboard to reduce the risk of contamination. Theallocation of risk between the owner andcharterer for delays will depend on the relevantfacts and the charter party wording.

Time charters

Time charterers are obliged to pay hirecontinuously throughout the charter periodunless they can prove that an exception applies.Some examples of possible off hire events underthe NYPE form are: ‘deficiency of men’ where timeis lost due to crew members being incapacitated/

repatriated due to illness or the imposition ofquarantine restrictions; delay caused by therefusal of free pratique as a result of suspectedinfection on the ship where off hire events extendto ‘any other cause whatsoever preventing the fullworking of the vessel’. In the Shelltime 4 formtime lost due to ‘quarantine restrictions’ is anexplicit off hire event.

An owner may be entitled to an implied indemnity,arising from compliance with the time charterer’sorders to call at a port in an infected region, forlosses resulting from consequential delays,including loss of income for off hire periods.

Voyage charters

For a voyage charter, it is necessary to examinespecific laytime/demurrage provisions andexceptions. A valid Notice of Readiness (NOR)requires the vessel to be physically and legallyready for cargo operations. While a ‘wifpon’(‘whether in free pratique or not’) provision maypermit NOR to be given before clearance hasbeen granted by the health authorities, it probablydoes not override the common law positionwhich prevents laytime from commencing if it isnot simply an administrative formality but insteadis specifically refused or delayed for reasonsrelated to the health status of the crew .

It is possible that some charters may includeprovisions (including a force majeure clause) thatexclude from the running of laytime or demurrageperiods of delay directly caused by quarantinerestrictions imposed on shore labour. The rules ofconstruction should be examined to determinethe applicability of such provisions.

Doctrine of frustration

It will only be in relatively rare cases that thedoctrine of frustration will enable the parties totreat the charter as terminated for reasonsrelated to COVID-19, including delay. Forfrustration to apply, the delay (or othercircumstances related to COVID-19) must be ofsuch nature and magnitude as to constitute anunforeseen event which makes it impossible toperform the charter or at least radically changes

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the nature of the contractual obligations outsidethe reasonable contemplation of the parties atthe time of the fixture. Also, it must not be ‘self-induced’ in the sense that the party seeking to relyon it cannot have made the performanceimpossible by its own choice.

(iv) Force majeure

There is no English common law doctrine of forcemajeure which excuses a party from performingits contractual obligations (other than an eventwhich brings the contract to an end under thedoctrine of frustration). There can, however, becontractual terms which provide that asupervening event in a specified category beyondthe control of one or both contracting parties mayexcuse non-performance or result in thecancellation of the charter.

The key points to consider in relation a forcemajeure clause is whether the non-performanceof the obligation due to a Covid-19 issue fitswithin the force majeure wording (e.g. if forcemajeure events include ‘quarantine’, ‘embargo’,‘disease’ or ‘epidemic’) and the event itself, ratherthan a consequence of it, is the proximate causeof the party’s inability to perform its obligations byreason of circumstances which are beyond itscontrol.

Performance

It is necessary to make a distinction between anevent which prevents performance and one whichrenders performance more difficult oruncommercial. The latter event does not itself

prevent performance but rather the non-performance is due to the party making acommercial choice to avoid loss of profit and willnot meet the requirements of a force majeureclause which describes event that preventperformance of contractual obligations.

(v) Recommended clauses

Both BIMCO and INTERTANKO have publishedclauses for use in charters which deal withinfectious or contagious diseases. For furtherdetails, including accompanying guidance notes,see:

https://www.bimco.org/contracts-and-clauses/bimco-clauses/current/infectious_or_contagious_diseases_clause_for_time_charter_parties_2015

https://www.bimco.org/contracts-and-clauses/bimco-clauses/current/infectious_or_contagious_diseases_clause_for_voyage_charter_parties_2015

https://www.intertanko.com/info-centre/model-clauses-library/templateclauses

This section is not intended to address thesematters in detail nor be a comprehensiveassessment of all potential issues arising undercharter parties in relation to Covid-19, particularlyas the situation is constantly changing. Itaddresses the issues from the perspective ofEnglish law. Members should also take intoaccount the advice and guidance of localcorrespondents on practical, regulatory andprocedural matters in operation at specific ports.

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Where to go for helpThe Swedish Club has set up a source of internal and external resources to help youdeal with COVID-19 where all publications referred to in this handbook can be found.

Visit: www.swedishclub.com/loss-prevention/coronavirus/

Head Office GothenburgVisiting address: Gullbergs Strandgata 6, 411 04 GothenburgPostal address: P.O. Box 171, SE-401 22 Gothenburg, SwedenTel: +46 31 638 400, Fax: +46 31 156 711E-mail: swedish.club@swedishclub.comEmergency: +46 31 151 328

Piraeus5th Floor, 87 Akti Miaouli, 185 38 Piraeus, GreeceTel: +30 211 120 8400, Fax: +30 210 452 5957E-mail: mail.piraeus@swedishclub.comEmergency: +30 6944 530 856

Hong KongSuite 6306, Central Plaza, 18 Harbour Road, Wanchai, Hong KongTel: +852 2598 6238, Fax: +852 2845 9203E-mail: mail.hongkong@swedishclub.comEmergency: +852 2598 6464

Tokyo2-14, 3 Chome, Oshima, Kawasaki-Ku Kawasaki, Kanagawa210-0834, JapanTel: +81 44 222 0082, Fax: +81 44 222 0145E-mail: mail.tokyo@swedishclub.comEmergency: +81 44 222 0082

OsloDyna Brygge 9, Tjuvholmen N-0252 Oslo, NorwayTel: +46 31 638 400E-mail: mail.oslo@swedishclub.comEmergency: +46 31 151 328

LondonNew London House, 6 London StreetLondon, EC3R 7LP, United KingdomTel: +44 7470 004 601E-mail: swedish.club@swedishclub.comEmergency: +46 31 151 328

Contacts

www.swedishclub.com