Policy & Compliance
What is an ‘End of Voyage’ clause?
One of the many problems Members have been encountering in the current Gulf crisis is carriers invoking seldom used ‘End of Voyage’ clauses. Where do you stand regarding these clauses and what should you consider?The information in this article should be read in conjunction with the general guidance given on pages 14-15 of this issue of BIFAlink .
B IFA has received calls from Members regarding various issues they have experienced since the current Gulf crisis started. Most are taking a pragmatic approach to dealing with the problems that they are having to resolve on behalf of customers. One problem encountered relates to carriers invoking the previously seldom used ‘End of Voyage’ clauses contained within their terms and conditions. The first point to emphasise is that this concept is neither new nor is it included in any international maritime convention. It is a contractual term, and the wording of the relevant clauses does vary between carriers. The situation The following extract from one carriers’ terms encapsulates the situation: “Matters affecting performance: If at any time the carriage is or is likely to be affected by any hindrance, risk, danger, difficulty or disadvantage of whatsoever and howsoever arising which cannot be avoided by the carrier by the exercise of reasonable endeavours... the carrier may at its sole discretion and without notice to the merchant and whether or not the carriage is commenced may either... abandon the carriage of the goods and place them at the merchant’s disposal at any place or port which the carrier may deem safe and convenient.” BIFA has discussed the matter with solicitors, whose views on the subject vary. Some argue that carriers only invoke this clause in very difficult circumstances and may not have time to consult with
parties named on a bill of lading. The opposite view is that such clauses give carriers too much discretion to make such decisions without recourse to the customer. Some argue that, as in previous conflicts, including Gulf wars, the decision should have been made on a voyage-by-voyage basis if it is believed that there is a genuine threat to the vessel entering a specific area. Some solicitors have identified issues to the following point: “The carrier shall nevertheless be entitled to full freight on the goods received for the carriage, and the merchant shall pay any additional costs incurred by reason of the abandonment of the goods.” It is thought that a court may take a different view on such wording. It is believed that it could be argued that carriers should establish if, by NOT delivering to the original port on the bill of lading, costs had been reduced due to a shorter journey and potentially reduced port fees where the goods were discharged. It was highlighted that this would be a balanced approach and make it easier for carriers to justify charging additional fees where they had incurred additional costs. It has been noted that some carriers in their Special Circumstances clause include terms such as: “The carrier may without notice to the merchant (but as his agent only) take any measures and/or incur any reasonable additional expense to carry or to continue the carriage of the goods, and or/sell or dispose them and/or to the carriage.” It could be argued that in this scenario there is a conflict of interest between what is in the best
interests of the carrier and its customer (principal). There are question marks as to whether the carrier can actually perform the dual role of an agent and carrier. Implied duties The law implies a number of duties to apply between the principal and the agent including: • The duty to perform the principal’s instructions, or where there have been no instructions given, then it is expected to act in a way which reflects its best judgement and the generally accepted practices of a sector or profession. If the principal’s instructions are unclear or there are no identifiable practices, then a principal will encounter significant issues bringing legal action. • The duty to act in ‘good faith’ – the agent always acts in the best interests of the principal. • The duty to exercise skill and care. From Member feedback, the issues stemming from Ending the Voyage will mainly impact those shipments
“ From Member feedback, the issues stemming
from Ending the Voyage will mainly impact those shipments ‘on the water’ at the time that the con fl ict commenced
24 | April 2026
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