BIMCO unveils contract clause to navigate US tariffs on China-Linked vessels

The Documentary Committee of BIMCO, the world’s leading shipping association, has introduced a standard clause to tackle contractual ambiguities stemming from the US Trade Representative’s (USTR) decision to levy fees on China-linked vessels calling at American ports. A dedicated BIMCO subcommittee of legal and commercial experts began drafting the clause in early June, fast-tracking its development in response to the USTR’s announcement targeting ships that are Chinese-built, owned, or operated.

BIMCO warns that the USTR’s notice of action will sharply increase the cost of seaborne trade with the United States and compound regulatory hurdles for the global shipping industry. The measures stem from the USTR’s Section 301 Investigation into China’s pursuit of dominance in the maritime, logistics, and shipbuilding sectors, and will extend to fees on all foreign-built car carriers calling at US ports.