Delphine Estibeiro – The Institute of Chartered Shipbrokers (ICS) Chennai Branch hosted a compelling seminar and panel discussion on “Charter Parties in an Era of War Risk, Sanctions, and Carbon Cost”, bringing together industry leaders, shipowners, operators, insurers, and legal experts to debate how contracts and responsibilities are evolving in today’s volatile maritime environment.
Welcoming the distinguished audience, Ms Arathi Narayanan, Chairperson of ICS Madras branch, highlighted the branch’s legacy since its establishment in 1995 and its role in fostering commercial education for shipping professionals across India. She noted that the evening’s theme was “contemporary and urgent,” given the multiple wars, sanctions regimes, and rising carbon costs impacting global shipping. “Our aim tonight is not only to discuss the clauses on paper but to understand how they play out in reality—where risks meet responsibility,” she said, setting the tone for the evening.
Moderating the discussion, Captain KG Ramakrishnan, FICS, a past chairman of ICS Madras, underscored the unprecedented convergence of risks. He observed that shipping today operates under the shadow of three simultaneous wars, sanctions that complicate payments, and mounting carbon costs. “Risk does not change depending on who is looking—it changes with responsibility and interpretation. Our task is to understand these perspectives before the next charter party is signed, not after the dispute begins,” he remarked.
From the owner’s perspective, Captain K Rajasekaran, Executive Director of Sanmar Shipping Ltd, explained how war risk has transformed voyages. He pointed out that routes once taking ten days now stretch to fifty as ships reroute around Africa. “Freight rates have soared, but the risks are undeniable. Seafarers bear the brunt—they are the human element exposed in war zones while others discuss from boardrooms,” he said, recalling the Strait of Hormuz crisis where Indian vessels were stranded for months.
The operator’s viewpoint was presented by Capt Aswath Bharadwaj Ashok, Marine & HSSEQ Superintendent – V group, who stressed the human dimension of contractual clauses. He noted that while war risk clauses may look like legal arguments on paper, in reality it is the captain making real‑time decisions on the bridge. “Contracts decide who pays, but who accounts for what the seafarer endures? Crew fatigue, war bonuses, and MLC compliance are lived experiences, not just contractual obligations,” he emphasized.
Mr Muthu Jagannath, Arbitrator and Mediator, addressed liability, noting that disputes often arise when operational realities diverge from contractual wording. “When damage, delay, or injury occurs, the question shifts from what should be done to who is responsible,” he said.
Insurance concerns were raised by Captain Neel J Nair, MD of Nautex Maritime Pvt Ltd, who explained that blanket yearly covers no longer suffice. “Insurers now demand precise details of vessel movements in high‑risk zones. Owners and operators must stay flexible, as premiums and exclusions change rapidly,” he cautioned.
Finally, Mr P Giridharan, Advocate, tied the threads together from a legal standpoint, stressing that charter parties must evolve to reflect war risk, sanctions, and carbon costs. “Courts interpret contracts against the backdrop of these realities, and ambiguity only fuels disputes. Negotiating clear clauses upfront is essential,” he advised.
The panel discussion concluded with a clear consensus that today’s contracts must evolve to reflect the realities of extended voyages, rising premiums, and the human cost borne by seafarers. Owners highlighted the commercial opportunities and risks of rerouted voyages, operators stressed the lived experiences of crews making real‑time decisions, liability experts warned of disputes when operational realities diverge from contractual wording, insurers underscored the need for flexible and precise coverage, and legal voices urged upfront clarity in charter clauses.
The evening was enriched by a lively question‑and‑answer session, where members and guests pressed the panellists on practical scenarios—from stranded vessels in conflict zones to the rising costs of carbon compliance. The lively exchange reinforced the importance of collaboration across owners, operators, insurers, and legal experts in navigating uncertainty.
The event concluded with a heartfelt vote of thanks delivered by Capt Lalith Kumar, Vice Chairman, ICS Madras, who acknowledged the contributions of the panellists, sponsors, and members. He praised the seminar for bringing together diverse perspectives and reaffirmed ICS Chennai’s commitment to fostering dialogue on pressing maritime issues.
Marex Media
