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Journal > Towcon Agreement

Towcon Agreement

October 12th, 2021

The principle of a “Knock for Knock” agreement is of course that each party should assume responsibility for its own property, regardless of negligence. The club therefore considered whether the costs of recovering the towing should be returned to the owners of the towing. TOWCON is an international flat-rate towing agreement. The form is intended for the commercial towing sector and is not intended for port towing. The last edition of this contract is TOWCON 2008. The copyright on toWCON 2008 is from BIMCO. Towing wires on board tugs are expensive. If they break during a towing operation on the high seas, who would be responsible for the repair or replacement? These and other issues were discussed at the last meeting of the revision of the BIMCO TOWCON and TOWHIRE towing contracts in 2008. Towing contracts must clearly reflect the operators` intentions as to which party is responsible for any costs of recovering the tow. Operators should also ensure that the parties designated as lessors and registered owners of the tug are clearly identified (Part I of the TOWCON form). The solvency of those parties should be established before the conclusion of the contract, in order to ensure that in the event of a claim, it is possible to rely on possible compensation.

`Any liability in respect of the removal of wrecks or costs related to the movement, ignition or buoyancy of the trawl or the prevention or reduction of pollution caused by towing.` Nicholas Kazaz is associated with HFW, where he focused on international trade dispute settlement and specialized in offshore oil and gas, energy and marine. Nicholas handles litigation arising from installation contracts, charters, bill of lading, shipbuilding, drilling yard disputes, towing, collisions, salvage, gable, grounding, total loss and prescription. He advises and advises, among other shipowners, charterers, energy companies, contractors, shipyards, ship managers and P&I Clubs. Nicholas has particular experience in designing and negotiating a number of contracts in the maritime and offshore sectors, including BIMCO SUPPLYTIME, TOWCON and BARGEHIRE and other model contracts, as well as parties to the OSV`s bespoke chartering. Since joining HFW, Nicholas has completed secondments to Australia (to the HFW Perth office, with a focus on the offshore/oil & gas/commodities sectors), the in-house legal team of a large international oil tanker owner, two international P&I Clubs/insurers group and a leading insurance broker. Nicholas qualified in England and Wales. TOWCON`s knock for knock provisions largely exclude each party`s liability for the “loss or damage” of the other party`s property, as well as a list of other types of claims. However, the costs of recovering another party`s property are not covered by the term “loss or damage”. In the rest of the list of exclusions, the only other exclusion that can cover recovery costs is Article 25(b)(ii)(4): there are a large number of circumstances in which a tug and tug must deviate from the intended trajectory or delay the voyage. This raises a number of issues that were discussed by the TOWCON/TOWHIRE subcommittee at the April 21-22 meetings.

SmartCon will be the long-term successor to IDEA. Based on the latest Microsoft technology, we will be able to continue to offer our industry-renowned contracts in the coming years. The last edition of this contract is TOWCON 2008. However, recovery costs are also not covered by this description. In comparison, Bimco`s delivery contracts release the tug from “any liability of [the tug],” which would certainly include the cost of recovering the tug. The question whether the owner of the tug may invoke toWCON`s knock for knock provisions with regard to the costs of recovering a tug is therefore not established. There are other provisions of TOWCON that can assist a tug in these circumstances….

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