What can be done as a contracting party?

Rights of Recourse – Background

Members will recall that the International Group of P&I Clubs, including The Swedish Club, issued Rights of Recourse – Circular 2736/2025 on 20 October 2025, informing the membership that, as of 20 February 2026, it will be a requirement to preserve rights of recourse for the carriage of dangerous goods in contracts for carriage.

What can be done by member to preserve rights of recourse for dangerous goods?

A key question that arises is – what can be done by the Member, in terms of the contractual language, to preserve the right of recourse in respect of the carriage of dangerous goods?

As set out in the Rights of Recourse – Circular 2736/2025, the preservation of a recourse against the shipper – or other contractual party who ships cargo on board the vessel (e.g. if the exporter contracts directly with the Member) – is a requirement for the P&I cover to be intact.

Charterparty language

In practice, this means that incorporation of a Clause Paramount (which incorporates the Hague or Hague-Visby rules in full) into a charterparty, will incorporate owner’s right of recourse against the charterer (in cases where the charterparty act as the contract of carriage). It is important to note that the Clause Paramount language used to incorporate the Hague or Hague-Visby rules must maintain the right for a recourse against the shipper. This will be the case if the Hague or Hague-Visby rules are incorporated in its entirety.

Other contracts for carriage of goods

In relation to any other contract that may act as a contract for carriage (e.g. sea waybill or service contract), the principle of incorporating the full Hague or Hague-Visby rules will mean that a right of recourse against the contracting counter-party for dangerous goods will be preserved.

What to look out for?

What must be looked out for – and avoided in order to preserve the P&I cover – is language in a Clause Paramount that does not incorporate a right of recourse against the shipper/contracting counter-party in relation to dangerous goods.
Equally, language that explicitly excludes rights of recourse for dangerous cargo against the shipper/contractual counter-party will mean that standard P&I cover will be prejudiced.