BIMCO adopts new clause in response to U.S. tariff measures

BIMCO has introduced a new standard contract clause aimed at tackling the uncertainty caused by recent U.S. trade actions.

The clause was developed quickly after the U.S. Trade Representative (USTR) announced plans to impose fees on Chinese-built ships, and vessels with Chinese owners or operators, calling at U.S. ports.

A special subcommittee of legal and commercial experts began working on the clause in early June. It was treated as a high priority, given the potential financial and operational impact of the USTR’s Notice of Action.

”It has been a priority to engage experts representing different segments of the industry when developing the clause in a short space of time,” said Stinne Taiger Ivø, Deputy Secretary General & Director of Contracts, BIMCO.

The USTR’s measures fall under its Section 301 investigation into China’s alleged targeting of the maritime, logistics, and shipbuilding sectors.

Under the proposed rules, additional fees would also apply to car carriers built outside the U.S., not just Chinese-affiliated vessels.

Shipping industry stakeholders are bracing for higher costs and added regulatory hurdles as a result.

Lastly, Nicholas Fell, Chairperson of BIMCO’s Documentary Committee commented that they 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.

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