The Impact of USTR’s Actions on Chinese-Related Ships
The Documentary Committee of BIMCO, the world’s largest shipping association, has recently taken steps to address contractual uncertainties arising from the US Trade Representative’s notice of actions targeting Chinese-related ships calling US ports.
A subcommittee composed of legal and commercial experts within BIMCO initiated the development of a standard clause in response to the USTR’s announcement of imposing fees on Chinese-built, owned, or operated vessels entering US ports.
This move by the USTR is expected to have significant implications on the cost of seaborne trade to and from the US, as well as presenting regulatory challenges for the shipping industry as a whole.
The USTR’s actions, part of the “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance,” will also lead to fees being imposed on car carriers constructed outside the US.
Nicholas Fell, the chairperson of BIMCO’s Documentary Committee, stated, “We anticipate that many of the current uncertainties surrounding the enabling provisions to give the USTR notice its intended effect will be resolved in the months following the implementation of the USTR fees.”