New Jason clause

Before people rush to add this clause, the New Jason clause, to RFQs and cargo policies, a quick clarification —  This is a clause which forms part of most Bills of Lading or charter parties and not a cargo insurance clause. Check it out! 

What is the relevance of this clause?

In simple words all that it says is that, should negligent navigation or management of the ship lead to an extraordinarily perilous situation at sea,still the shipowners can claim under General Average from the cargo and other interests. So what the clause does is to strengthen the hands of the shipowners.

If we look at the York-Antwerp Rules, 1994 under which General Average losses are adjusted, Rule D clearly mentions that even if the event leading to a General Average sacrifice or expenditure is caused by the fault of one of the parties to the adventure ( which could include the shipowner, as well), it would not come in the way of the party at fault seeking General Average contribution.

Then where is the need for the New Jason clause in charter parties & Bills of Lading, one might wonder ! The answer lies in the fact that if the General Average adjustment was to be done in London , there was no problem but if in the US of A, the Courts held a different view. Interpreting the Harter Act, 1893, Courts have held that while shipowners would not be liable to cargo owners for faulty navigation or management of the vessel, at the same time shipowners cannot seek General Average contribution from cargo and other interests in such cases. This put shipowners at a distinct disadvantage and hence the New Jason clause is inserted in Bills of Lading/charter partie.s to protect shipowners’ interests