Agreement between the War Trade Board of the United States and the Danish Special Shipping Committee 1

In view of the arrangements perfected between the War Trade Board and the Danish Merchants Guild, etc., regarding supplies, provisions and necessary commodities for shipment to Denmark, it is hereby agreed:

1. That the Danish Special Shipping Committee (Fragtnavn) will charter to the United States Shipping Board 265,000 deadweight tons of shipping, and to Great Britain, under an agreement to be simultaneously executed, 200,000 deadweight tons of shipping, all steamers and motor vessels to be over 500 tons deadweight.2

Denmark is to have the balance of her ships for her own needs, estimated to be about 340,000 tons deadweight.2 This amount of tonnage is to be run for the needs of Denmark, carrying commodities to and from the Kingdom of Denmark, Iceland, Greenland and the Faroe Islands.

Should any of the vessels allotted to Denmark for her own needs not be required for the trade mentioned above, they shall be chartered at the option of the War Trade Board to Belgian Relief or Swiss Government, at the time charter rate of $10.75 per ton deadweight per month and other conditions as per clause 5.

It is agreed that the allotment for the various trades of Danish motor vessels and steamships of over 500 tons deadweight shall be as per schedules hereto annexed. No Danish vessels chartered to [Page 1349] the United States shall be employed for transport of troops or in European ore trade.

2. It is agreed that if vessels chartered to the United States should be lost through war or marine risks the United States agrees that it will not request any substitutes for such vessels, beginning from the time that this agreement is signed.

It is further agreed that of the motor vessels and steamships allotted to the United States according to clause 1, about 80,000 deadweight tons shall be chartered to the Belgian Belief and/or Swiss Government, and the balance to the United States Shipping Board, to be used as follows:1

1st:
about ½ in or outside the so-called German submarine danger zones as of January 16, 1918.
2d:
about ½ outside such danger zones.

(A map of the danger zone is herewith attached in order that there may be no question about the definition of it.2)

Time charter rates on motor vessels and steamers chartered to the United States Shipping Board to be $10.75 per ton on the boats chartered to the Belgian Belief or Swiss Government and the one-half in or outside the so-called German danger zones as above mentioned. The time charter rate on boats used outside the above-described danger zone is to be $8.50 per deadweight ton per month.

Charter of the above mentioned steamers shall be for periods of six months and the Danish Special Shipping Committee hereby undertakes that they will until peace is signed by the United States of America renew these charters one month in advance of their expiration on the same conditions.

Providing the regulations of the American and British naval authorities are observed, Danish vessels trading under time charter to the United States or Great Britain in the trades to and from Europe and the Atlantic islands will, as far as possible, be protected by allied naval vessels.

Any vessels trading in accordance with the provisions of this agreement, including those trading in Danish interests, which may be damaged while so trading, shall be allowed facilities for necessary repairs, as soon as practicable, providing material and labor can be spared for the purpose.

Any Danish vessel under charter to the United States Shipping Board which may be lost or rendered unserviceable by reason of any peril (other than war peril which is for account of the charterers) and which may be afterwards repaired or salved shall be restored to the service of the United States Government with all possible despatch.

[Page 1350]

3. In the event of the so-called German danger zones being extended beyond the limits in force of January 16, 1918, owners of vessels chartered for use outside danger zones as of January 16, 1918, shall have the option of either continuing under their existing charters or rechartering on terms and conditions set out in this agreement for trades inside, to and from the danger zone of January 16, 1918.

The new terms shall apply from the date on which the vessel completes the voyage upon which she was engaged at the time when notice is given.

That the rate of hire payable for vessels trading in the danger zone shall be only payable while they are in such trade; that should they later be transferred to their previous trading limits it is agreed that hire shall again revert to the $8.50 basis.

Owners may exercise this option at any time on not less than twenty days notice being given to charterers.

All vessels are to be chartered to the United States on Baltime charter forms, and conditions to be as per attached forms.

4. Owners of vessels time chartered to the United States, Belgian Belief Commission or Swiss Government shall not be subjected to any taxation by the United States by reason of such ownership, as long as this agreement holds good, nor shall the freight earned, insurance money recovered or interest thereupon be subjected to any such taxation.

5. On steamers and motor vessels chartered to the United States it is agreed that the United States will indemnify owners for losses caused by war risk on the basis of the following valuations:

  • Ships over 30 years old: $140 per ton d. w.
  • Ships 10 to 30 years old: $165 per ton d. w.
  • Ships under 10 years old: $190 per ton d. w.

As to vessels insured against marine risks with Danish underwriters it is agreed that losses for which Danish marine underwriters are not considered liable by So-og Handeleretten in Copenhagen, or eventually by the Supreme Court of Denmark, shall be considered losses through war risks.

It is further agreed that when off hire the vessels are held covered against war risk by the United States. The forms of Danish marine policies at present existing, and existing Danish war risk laws shall apply but detention money is not to be paid or indemnity given in respect of the capture, seizure or detention of any vessel by the Associated Governments.

Payment for such losses as referred to in the first paragraph of this article and for which the United States are responsible under this agreement shall be made in New York or Washington to the [Page 1351] Danish owners within twelve months after the loss of the vessel and interest at 5 per cent shall be paid beginning 60 days after proof of loss of the vessel.

6. The United States undertakes to license necessary bunker fuel, ships stores and provisions for ships reserved for Denmark’s own use, said bunker fuel to be sufficient to take the vessels to Denmark direct and return, it being agreed by the Danish Special Shipping Committee that no vessel shall land any part of said fuel, stores or provisions so obtained from the United States in Denmark, or any insular possession of Denmark, or elsewhere or transfer them to any other vessel without specific permission of the War Trade Board.

Vessels time chartered to the United States, Belgian Relief Commission or Swiss Government, and vessels employed in overseas trade for Denmark’s benefit to sign United States Bunker Regulations, as per form annexed hereto.1 Danish vessels named to run in specific Danish or Scandinavian trade shall not be requested to sign the United States Bunker Regulations.

7. The United States will endeavor to aid vessels employed in overseas trades for Denmark’s own use in getting as quick despatch in the United States ports as possible, and the Danish Special Shipping Committee agrees that all vessels allotted for Danish needs shall carry full cargoes, as far as possible, in both directions, and shall be handled with the utmost possible despatch.

No Danish vessels over 500 tons are to lay up except for necessary repairs, except those on the annexed list.1 No steamers are to be allowed to go in ballast to load cargo in any other oversea ports than the United States, to carry rations under this agreement.

8. The proper authorities of the United States and Great Britain will give necessary instructions to Danish vessels with regard to routes, time of sailing, etc., which instructions Danish masters will be instructed by their owners to follow.

9. Steamers and motor vessels now under time charter to United States or Great Britain, allocated in this agreement for service to Denmark, Great Britain or the United States, are to enter such service immediately on expiration of their present time charters.

Charter parties are to be signed for each vessel as she is named to the United States by the United States Shipping Board and the Danish Special Shipping Committee. Steamers now under charter to the United States shall be delivered under this agreement at the port where their present time charters expire. Other steamers are to be delivered at a United States port on the East or West Coast of the United States, at the option of the Shipping Board, delivery [Page 1352] being accepted at a port on the coast where the voyage or charter of the vessel ends.

On the expiration of this agreement steamers that are on time charter to the United States Shipping Board under this agreement are to be redelivered on expiration of their charters at a port in the United Kingdom or on the Continent between Bordeaux and Rotterdam or at an east coast United States port within the limits of their charter.

The Danish Special Shipping Committee agree that they will furnish a monthly statement to the Shipping Board and the War Trade Board showing the position and deadweight carrying capacity of all steamers under the Danish flag; this will include all arrivals and sailings from Denmark.

10. As a special concession to the Danish shipowners, in order to aid the rebuilding of the Danish Mercantile Fleet the War Trade Board agrees to license to the Danish Special Shipping Committee about 25,000 tons of shipbuilding materials. This shall begin to be licensed during 1919 if and as soon as the needs of the United States and her Allies will permit.

11. This agreement is to hold good until peace is signed by the United States of America, unless the United States shall, at the end of one year, give notice cancelling this agreement.

War Trade Board
By
Vance C. McCormick
, Chairman
Danish Special Shipping Committee
By
A. O. Andersen

Kay Reinhard
  1. See footnote 1, ante, p. 1339.
  2. Annexed lists of ships not printed.
  3. Annexed lists of ships not printed.
  4. Annexed lists of ships not printed.
  5. Not printed.
  6. Not printed.
  7. Not printed.