INTERTANKO Guide to Terminal Conditions of Use

Overview COUs often contractually seek to deprive owners of their statutory right to limit liability. Generally, and for crude trades in particular, COUs are rarely provided to owners in advance. As a consequence, the Master is often placed in a difficult position – agree the terminal’s asymmetric and unilateral conditions in a time sensitive environment or face the prospect of being denied entry to the port and/or terminal. In addition, if the Master agrees to the COU, owners may be held liable for matters controlled by the terminal. This is a problematic position for owners contractually, in terms of their own risk management and from an insurance perspective. The practice is being followed by an increasing number of terminals around the world. If the Master does not agree to the COU, in most instances, this will also have immediate consequences under any applicable charterparty. INTERTANKO is concerned about the risk that: i.       owners may prejudice their statutory right to limit