Bimco is developing a new standard clause to guide shipowners and the shipping industry in response to the new US fees on China-linked vessels calling at US ports.
The Copenhagen-based shipping association said it has begun work to address “contractual uncertainties” arising from the United States Trade Representative’s (USTR) notice of actions to impose fees on Chinese-related ships calling US ports.
The legal and commercial experts of Bimco subcommittee work now on a clause -currently underway- to help shipowners deal with the US port fees.
The USTR has announced actions to impose fees on ships calling at US ports which are Chinese-built or have Chinese owners or operators.
The actions are part of the USTR’s “Section 301 investigation of China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance”.
When implemented, the actions will also result in fees imposed on any car carrier built outside of the United States.
The revisions tackle major concerns voiced in a tsunami of opposition from the global maritime industry.
Forecasters warn of global repercussions as Washington takes aim at China’s shipbuilding dominance.
“When implemented, the measures will significantly raise the cost of seaborne trade to and from the United States. Additionally, the actions present complex contractual challenges for the shipping industry which is responsible for transporting around 90 percent of world trade,” said David Loosley, Bimco secretary general and CEO.
Recognising the complexities, the Bimco documentary committee has decided to prioritise the drafting of clauses to support the shipping industry in navigating the new rules.
“Seen in the light of the complex nature of the USTR actions, we have decided to make this a priority. A Bimco subcommittee comprising legal and commercial experts has been established and work on a clause is already underway. The clause is expected to be published in the near future and further communication is planned once it is adopted,” noted Stinne Taiger Ivø, deputy secretary general & director of contracts at Bimco.
