Force majeure refers to unforeseeable and uncontrollable events that prevent one or both parties from fulfilling their contractual obligations. These events must be extraordinary, unavoidable, and not due to negligence by either party.

How It Works:
A force majeure clause in a contract protects both shippers and carriers by excusing them from liability if they cannot meet contractual terms due to exceptional circumstances. When an event occurs, the affected party typically:

1. Notifies the other party about the disruption as soon as possible.
2. Provides evidence of the force majeure event.
3. Suspends performance of the contract without penalty until the situation is resolved.

Examples:
Common force majeure events include:

• Natural disasters: Hurricanes, earthquakes, floods.
• Political events: War, terrorism, embargoes.
• Labor disruptions: Strikes, port closures.
• Government actions: New regulations, customs holds.
• Pandemics: COVID-19 caused widespread force majeure claims across global supply chains.

How It Works in Practice:
In shipping contracts, a force majeure clause might:

• Delay delivery deadlines without penalty.
• Suspend obligations like payment or performance while the event persists.
• Excuse breach of contract if fulfillment becomes impossible, not just inconvenient.
  However, the affected party must prove the event qualifies as force majeure under the contract’s specific wording.

For shippers, understanding the force majeure clause ensures they’re protected from penalties if disruptions occur. It’s crucial to review contracts carefully, as force majeure doesn’t always cover increased costs or minor delays—only true impossibility.

In logistics, clear communication and early notification are key when claiming force majeure to maintain trust and manage supply chain disruptions effectively.