How should the shipping industry deal with the special fee planned by the U.S. government for ships built in China when calling at US ports?
The uncertainty is significant. Bimco has now drawn up a new contractual clause for this purpose, thus implementing its announcement from June.
The documentation committee of the world’s largest shipping organization, which is mainly supported by shipowners, charterers and brokers and focused on creating and managing standard clauses for charter, freight, newbuilding, and second-hand contracts, has adopted the new standard clause, as now confirmed.
This is intended to eliminate contractual uncertainties “that could arise from the announcement by the United States Trade Representative (USTR) to impose fees on ships from China calling at US ports”. Ships operated or owned by companies from China are also affected.
A subcommittee of Bimco, made up of legal and trade experts, began drafting the clause at the beginning of June and it has now been finalized.
“In drafting the clause in a short period of time, it was a priority to involve experts from different segments of the industry. The USTR’s actions will present complex challenges and the subcommittee has carefully discussed how best to reach an outcome that will help the industry minimize disputes,” said Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at Bimco.
“The Notice of Action will significantly increase the cost of ocean trade to and from the United States and create additional regulatory challenges for the shipping industry.”
These actions are part of the US Trade Representative’s “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance”. The planned surcharge would apply to all car carriers built outside the U.S. However, the policy has not yet taken effect. Nevertheless, Washington’s threat has already had a major impact on the industry.
“We anticipate that many of the current ambiguities surrounding the provisions that give the USTR notice its intended effect will be clarified in the months following the implementation of the USTR fees. As more experience is gained, the clause will be reviewed to ensure that it continues to meet our high standards and the needs of the industry,” emphasized Nicholas Fell, Chairman of the Bimco Documentary Committee.
