New Conditions for the UK Standard Conditions for Towage and Other Services

In November 2024 a new edition of the UK Standard Conditions for Towage and Other Services (the UKSCT 2024) was issued by the British Tugowners Association.

The UK Standard Conditions for Towage are commonly used throughout the world and in New Zealand – ports in New Zealand reference the UKSCT 1986 in their standard conditions of business.

This new edition modernises UKSCT 1986 to reflect current industry practice and legal developments.   In particular, the British Tugowners Association wanted to emphasise that towage places tugs in hazardous environments, especially under the orders of third parties, whether a ship’s master or a pilot.

The following is a summary of the changes:

Clause 1: Definitions

• Simplifies and clarifies the definition of “whilst Towing” by considering how Towing begins and ends: Towing starts when the Tug is in a position to commence Towing (clause 1(b)(i)); and Towing ends when the Tug has ceased Towing and is safely clear.
• The start and end points are significant as they link to when the indemnity provisions apply (clause 4).

Clause 2:  Joint and several application

• Clarifies if a Hirer (defined in clause 1(b)(v)), usually the tow owner, arranges Towage services and a Vessel accepts those services, the UKSCT binds the Vessel owner.
• This clause makes it difficult for the Vessel owner to deny that UKSCT 2024 terms apply to them.

Clause 3: The Tug is the servant of the tow

• Holds the Hirer liable for any act or omission of the crew of the Tug and any others the Tugowner (defined in clause 1(b)(vi)) engages.
• The updated conditions clarify that the Hirer’s liability excludes any act or omission committed intentionally or recklessly to cause harm by anyone deemed a servant of the Hirer.

Clause 4: Liability and indemnity

• The liability regime has been simplified, the language has been modernised, and exceptions have been clarified.

Clause 5: Substitution and agency

• If a Tugowner engages another Tugowner to provide services, the first Tugowner has no liability to the Hirer for the work (clause 5(c)).

Clause 7: Force majeure and delay

• Clause 7(a) expands the list of force majeure events to align with modern commercial practice. The list of exclusions to the Tugowner’s liability now includes cyber threats such as computer malware, and the impacts of piracy and disease, among others.

Clause 8: Himalaya Clause

• Divided into subclauses (a) and (b). Under subclause (a), the Hirer undertakes not to bring actions against any servant or agent of the Tugowner.  Subclause (b) is a modern Himalaya clause; the Tugowner’s servants and agents benefit from the Tugowner’s defences, limitations of liability and any indemnities in its favour.

Clause 9: Governing law and jurisdiction:

• Updated to allow parties the right to agree on their governing law and jurisdiction, albeit with English law as the default option.

If you have any questions about the UKSCT 2024, please get in touch with our Trade & Transport Team or your usual contact at Hesketh Henry.

Simon gratefully acknowledges Marwan Bashir (summer clerk) as co-author of this article.

Disclaimer:  The information contained in this article is current at the date of publishing and is of a general nature.  It should be used as a guide only and not as a substitute for obtaining legal advice.  Specific legal advice should be sought where required.