Boycott Clause

A charterer may insist that a charterparty contains a clause, which causes the shipowner to take the risks if the vessel is delayed by a “boycott” by labour. For example, waterside workers (stevedores) who belong to a union which is affiliated with the International Transport Workers Federation (ITF), may combine to refuse to handle cargo or to refuse to allow a vessel to handle cargo if the shipowner does not have an ITF-approved collective agreement with the crew and does not possess a “Blue Certificate“. Such a clause in a time charter usually provides that if the vessel was “boycotted” because of non-compliance with ITF requirements, the vessel would be off-hire.