Incorporation of arbitration Clauses in Charter Parties into Bills of Lading Sample Clauses

Incorporation of arbitration Clauses in Charter Parties into Bills of Lading. It is usual for shipping companies to seek to incorporate arbitration clauses in charter parties into bills of lading issued to shippers. The validity of such arbitration clause in bills of lading have come under considerable debate. The question is whether an arbitration clause in a charter party operates as part of the xxxx of lading. The determining factor appears to be the words used in the xxxx of lading. Are the words sufficient to incorporate the arbitration clause in the charter party? The principle that a narrow interpretation would be given to the words of incorporation used in the xxxx of lading has been long established.18 The words in the bills of lading must specifically incorporate the arbitration clause in the charter party. General words such as terms and conditions are not sufficient as arbitration clauses have been held not to be terms and conditions but an independent and ancillary obligation. The cases of Xxxx K19 and The Delos20 illustrates the nature of the words required to incorporate the arbitration clause in the charter party into the bills of lading. The words in Xxxx K were stated thus: - “All other terms, conditions, clauses and exceptions including the arbitration clause). In the Delo’s the words in the bills of lading seeking to incorporate the arbitration clause in the charter party stated thus “This shipment is carried under and pursuant to the terms of the Charter dated July 7th 1998 at