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BIMCO, the world\u2019s largest shipping association, has adopted a new standard clause to help shipping companies deal with the challenges arising from recent U.S. trade actions.<\/p>\n
The clause is aimed at reducing legal confusion and contract disputes caused by the United States Trade Representative\u2019s (USTR) Notice of Actions targeting Chinese-related ships arriving at U.S. ports.<\/p>\n
The USTR recently announced plans to impose additional fees on vessels that are either built in China or have Chinese owners or operators. These actions are part of the USTR\u2019s <\/span>\u201cSection 301 Investigation of China\u2019s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.\u201d<\/p>\n The upcoming fees are expected to apply not just to Chinese-built vessels or those owned or operated by Chinese companies, but also to any car carrier built outside the U.S. <\/span><\/p>\n These changes are likely to raise the cost of seaborne trade to and from the U.S. and increase regulatory pressure on the global shipping industry.<\/span><\/p>\n In response, BIMCO quickly formed a subcommittee made up of legal and commercial experts. This group began working on the clause in early June after the USTR\u2019s announcement, making it a top priority. <\/span>Their goal was to create a clause that would help shipowners and operators deal with the risks and legal uncertainties created by the USTR\u2019s decision.<\/span><\/p>\n BIMCO\u2019s Deputy Secretary General and Director of Contracts said the association focused on gathering input from a wide range of experts across the industry in a very short time. <\/span><\/p>\n According to her, the USTR\u2019s actions are expected to bring complex problems, and the subcommittee carefully discussed how to prepare a solution that helps the shipping industry avoid disputes.<\/span><\/p>\n The Chairperson of BIMCO\u2019s Documentary Committee said many uncertainties still exist about how the USTR\u2019s Notice will be enforced. He added that after the fees are implemented and as the industry gains more experience, BIMCO will continue reviewing the clause to make sure it remains effective and up to the organisation\u2019s high standards.<\/span><\/p>\n