Forty-Forty-Twenty

Summary of Forty-Forty-Twenty

A provision of the Unctad Code Of Conduct For Liner Conferences (read this and related legal terms for further details) that calls for a system of cargo preference in which 40 percent of export cargoes would move on ships of the exporting country. 40 percent on ships of the importing country, and the remaining 20 percent available to ships of other nations. The agreement applies only to cargoes moving in liner conference trade; it does not govern movements aboard vessels of nonconference carriers or bulk charters. The agreement has been adopted by most maritime nations with a few notable exceptions, including the United States.

(Main Author: William J. Miller)