The world’s largest shipping association, BIMCO, has begun drafting a standard clause to address legal and contractual uncertainties stemming from recent US trade policy developments.

The move follows a notice of actions by the United States Trade Representative (USTR) to impose new fees on vessels calling at US ports if they are Chinese-built, owned, or operated.

The measures are part of the USTR’s “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.” The action will also extend to foreign-built car carriers, regardless of ownership.

“When implemented, the measures will significantly raise the cost of seaborne trade to and from the United States. Additionally, the actions present complex contractual challenges for the shipping industry, which is responsible for transporting around 90 percent of world trade,” said David Loosley, BIMCO secretary general and CEO.

In response, the BIMCO documentary committee has prioritised the development of a standard clause to support shipping stakeholders in managing the new regulatory risks.

“Given the complexity of the USTR actions, we are treating this as an urgent matter,” said Stinne Taiger Ivø, deputy secretary general and director of contracts at BIMCO, adding: “A subcommittee of legal and commercial experts is already working on the clause, which is expected to be released soon. Further updates will follow upon its adoption.”