The Impact of US Trade Policy on the Shipping Industry

The world’s largest shipping association, BIMCO, is taking proactive steps to address the legal and contractual uncertainties arising from recent US trade policy developments. The United States Trade Representative (USTR) has announced plans to impose new fees on vessels calling at US ports if they are Chinese-built, owned, or operated.

These measures are part of the USTR’s “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance” and will also apply to foreign-built car carriers, regardless of ownership. The implementation of these measures is expected to significantly raise the cost of seaborne trade to and from the United States, posing complex contractual challenges for the shipping industry, which plays a crucial role in transporting around 90 percent of world trade.

To assist shipping stakeholders in managing these new regulatory risks, BIMCO has initiated the development of a standard clause. David Loosley, BIMCO Secretary General and CEO, highlighted the importance of addressing these challenges promptly, stating, “Given the complexity of the USTR actions, we are treating this as an urgent matter.”

The BIMCO documentary committee has prioritized the drafting of the standard clause, with Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO, leading the efforts. A subcommittee comprising legal and commercial experts is already working on the clause, which is expected to be released soon. Further updates will be provided upon its adoption.