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2020/03/31

 

INTERNATIONAL FEDERATION OF FREIGHT FORWARDERS ASSOCIATIONS (FIATA)

國際貨運代理協會聯合會

 

·      Invoking force majeure in the coronavirus crisis: Some practical tips

 

Designated by the World Health Organisation (WHO) as a Public Health Emergency of International Concern (PHEIC), the ongoing COVID-19 pandemic continues to throw supply chains into turmoil on an unprecedented scale. Governments worldwide are increasingly imposing stringent measures impacting the movement of people and goods to contain its rapid spread, whilst factory shutdowns, staff shortages and border restrictions cast a heavy shadow on supply chain operations. The knock-on effect on companies’ ability to comply with their contractual obligations raises the question of force majeure – an oft-used clause found in many commercial contracts which may excuse the delay or non-performance of one’s obligations in the occurrence of certain specified events. Some major logistics companies are already invoking force majeure clauses to temporarily relieve them of their contractual obligations.

 

Where such clause is present, much turns on its wording and the specific set of circumstances in question; there is no singular definition of force majeure. However, some overarching principles tend to apply within the analysis by FIATA.  For details, please refer to the FIATA document.

 




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