BIMCO adopts USTR clause
- Port fees will present complicated challenges and raise costs
- BIMCO to review standard USTR clause over time
BIMCO has adopted a standard clause to tackle contractual uncertainties from the US Trade Representative’s plans to levy fees on China-linked ships calling at US ports
BIMCO has adopted a standard clause to tackle uncertainties in contracts arising from the US Trade Representative’s fees on China-related ships calling at US ports.
The shipowners’ group said the USTR’s Notice of Action, part of its Section 301 investigation into China’s shipbuilding and maritime dominance, would significantly raise the cost of seaborne trade to and from the US, and add to regulatory challenges for the shipping industry.
BIMCO’s subcommittee of legal and commercial experts started work on the clause in June.
“The USTR actions will present complex challenges, and the subcommittee has carefully discussed how to best arrive at a result that will help the industry minimise disputes,” said BIMCO director of contracts Stinne Ivo.
BIMCO documentary committee chair Nicholas Fell said many of the uncertainties around the USTR notice’s enabling provisions would be resolved in the months after the fees were implemented. BIMCO would review the clause as it gained experience, he added.
US port fees are scheduled to begin in mid-October. Industry bodies have argued fees on vehicle carriers will deter ships from servicing the US and raise costs for consumers.
