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Correspondents

15 Nov 2024

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On Tuesday 12 November 2024, the British Tugowners’ Association (BTA) released a new revision of the UK Standard Conditions for Towage and Other Services (the “UK Standard Conditions”). The 2024 form has been under development for several years, in a project closely assisted by the Club. It represents a welcome update to terms that have been the mainstay of day-to-day towage operations across the UK, Europe and in various other countries worldwide. The new Conditions, Foreword and Explanatory Notes are available on the BTA website here.

 The 2024 revision comes with a set of Explanatory Notes, outlining the intended operation of the form and the key changes made in this revision. The main purpose of the revision was to modernise the technical and legal language used, and to make the operation of the conditions clearer for all parties concerned. Particular focus was given to those clauses which had caused the most interpretation arguments in recent years.

For Members’ benefit, the Club would highlight the following changes arising from the revision:

  • The technical language has been modernised. Gone are the references to the breakdown of steam ‘boilers’ and the tug being so close to the tow to be able to receive orders ‘direct[ly]’ from it. In their place are new references to concepts such as autonomous systems and phishing.
  • The language has been made gender neutral. References to ‘him’ and ‘his’ are now ‘they’ and ‘their’.
  • In the reorganised Definitions section (Clause 1) the meaning of the phrases ‘howsoever caused’ and ‘negligence’ has been clarified, and the test for the commencement and conclusion of towing (when the main indemnity provisions apply) has been simplified.
  • It is now more difficult for a tow, having willingly accepted assistance arranged for them under UKSCT, to deny the terms were incorporated / apply to them (Clause 2).
  • The tow will no longer be vicariously liable for the acts of the tug’s Master or crew, where their action or omission was committed with the intent to cause the harm/loss or recklessly with knowledge that it would probably result (Clause 3).
  • The general liability and indemnity allocation (Clause 4) has been made more explicit, to make it less open to interpretation. There is also no longer wording attempting to disapply some aspects of the conditions from injury or death claims.
  • Clause 5 clarifies that, where another tugowner is arranged to perform the services, there is no liability remaining on the original tugowner, and the contract becomes one between the new tugowner and the hirer.
  • The list of force majeure events has been updated and logically rearranged in Clause 7.
  • The provisions protecting the Master, crew and other servants and agents from direct claims have been strengthened in an improved ‘Himalaya’ clause (Clause 8).
  • The law and jurisdiction provisions (Clause 9) are now more flexible and standardised. Instead of an English and Scots law bifurcation, the parties may now agree a choice of law, with English as the default option.

Insurance Position

The Club considers that the changes to the 1986 conditions are important and beneficial to all parties, in making the towage terms clearer and more reliable. We therefore endorse the use of the new terms by our Members.

Members who operate tugs may begin using the 2024 Conditions from 12 November 2024 onwards. Members who receive towage services from tugs may accept the services on the new terms from 12 November 2024 onwards too. The Rules of International Group P&I Clubs permit Members to accept towage services, for customary towage*, on any ‘approved contract’. The list of approved contracts includes the UK Standard Towage Conditions, without any specification as to the revision number.

 * By way of a reminder, customary towage is (a) towage for the purposes of entering or leaving port, or maneuvering within port, in the ordinary course of trading, or (b) towage of a vessel which is habitually towed (e.g. a non self-propelled barge).

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