BIMCO Introduces Standard Clause to Address USTR’s Chinese Ship Fees

BIMCO, the world’s largest shipping association and leading provider of standardized maritime contracts and clauses, has adopted a standard clause to address contractual uncertainties stemming from the United States Trade Representative’s (USTR) upcoming fees on Chinese-related vessels entering U.S. ports.

The clause, developed by a BIMCO subcommittee of legal and commercial experts who began work in early June, aims to provide clarity as the industry faces new fees on Chinese-built or Chinese-owned/operated ships calling at U.S. ports.

“It has been a priority to engage experts representing different segments of the industry when developing the clause in a short space of time. The USTR actions will present complex challenges, and the subcommittee has carefully discussed how best to arrive at a result that will help the industry minimise disputes,” said Stinne Taiger Ivø, Deputy Secretary General & Director of Contracts at BIMCO.

The USTR Notice of Action, part of the “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance,” will significantly increase costs for seaborne trade to and from the United States while adding to the industry’s regulatory challenges.

Nicholas Fell, Chairperson of BIMCO’s Documentary Committee, noted that many uncertainties surrounding the implementation will likely be resolved in coming months. “As more experience is gained, reviewing the clause to ensure it continues to meet our high standards and the industry’s needs will be part of BIMCO’s ongoing contractual work,” he said.

The fees are scheduled to take effect in October 2025 following a 180-day zero-fee grace period, according to the final Notice of Action published on April 17, 2025. The action applies to Chinese-owned or operated ships, Chinese-built vessels, and foreign-built car carriers.

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