Both to Blame collision clause

This is a clause found in both voyage and time charterparties and also in bills of lading. It is a protective clause, to give protection to one side. For example, a typical clause in a charterparty can state:

“Both-to-blame collision clause:

If the ship comes into collision with another ship as a result of the negligence of the other ship and any act, neglect or default of the Master, mariner, pilot or servants of the Carrier in the navigation or in the management of the ship, the owners of the goads earned hereunder will indemnify the Carrier against all loss or liability to the other or non-carrying ship or her owners in so far as such loss or liability represents loss of, or damage to, or any claim whatsoever of the owners of said goods, paid or payable by the other or non-carrying ship or her owners to the owners of said goods and set off, recouped or recovered by the other or non-carrying ship or her owners as pan of their claim against the carrying ship or carrier.”