Owners can rely on absolute warranty in frequently used safe berth clauses

BIMCO, INTERCARGO and INTERTANKO have welcomed a ruling by the highest court in the US on 30 March 2020 concluding that the plain meaning of the safe-berth clause in the Athos I dispute includes an unambiguous warranty of safety. Søren Larsen, deputy secretary general of BIMCO, said: “The US Supreme Court has made a sound and robust decision consistent with the shipping industry’s long held understanding of risk allocation in safe port and safe berth clauses. A different result would have compromised the essential clarity and certainty provided by standard charter parties on which our industry depends.”