BIMCO Adopts New Clause for USTR-Linked Shipping Risks

The Documentary Committee of BIMCO, the world’s leading shipping association, has introduced a new standard contract clause designed to tackle legal uncertainties stemming from the U.S. Trade Representative’s (USTR) recent plans to impose fees on vessels linked to China that call at American ports.

Following the USTR’s announcement, BIMCO promptly established a subcommittee of legal and commercial specialists to draft the clause. The group began its work in early June, treating the issue with urgency due to the potential impact on contracts involving Chinese-built, owned, or operated ships trading with the United States.

BIMCO stated that the USTR’s move is expected to increase the costs of maritime commerce to and from the U.S. and compound the regulatory burden on shipping companies.

The USTR’s measures fall under its “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.” In addition to targeting Chinese-related vessels, the action will also apply fees to any car carriers not constructed in the United States.

“We anticipate that many of the current uncertainties surrounding the enabling provisions to give the USTR notice its intended effect will be resolved in the months following the implementation of the USTR fees,” said Nicholas Fell, chairperson of BIMCO’s Documentary Committee.