ABSTRACT

In the context of shipping policy bilateralism refers to an international agreement between two states for the purpose of sharing the carriage of those states’ mutual trade. A cautious approach to bilaterals was taken in 1980 in the House version of the Omnibus Maritime Bill debated during the second session of the 96th Congress. Much of the economic argumentation surrounding the use of bilaterals is the same as that heard in connection with the Liner Code. The United States approved bilateral dates back to 1970 during the Nixon Administration. In the face of developments in the liner shipping field a number of observers have seen salvation for the United States liner merchant fleet in bilaterals and bilateralism via intergovernmental and/or commercial agreements. Bilateral arrangements could be utilized only as necessary and in relation to states that absolutely insist upon them whereas the principles and provisions of the Code are recognized as applicable as between all states party to the Code.