News / Force majeure: getting it wrong can be a very expensive business

© Marko Bukorovic

DHL Global Forwarding has declared force majeure on its sea and air freight contracts, allowing it to modify its services despite the agreements.

Invoking force majeure allows companies to protect themselves from legal responsibility, something forwarders have been particularly concerned with.

However, insurance companies are advising caution before invoking the clause.

“Force majeure is defined as ‘an event, or a series of related events, that is outside the reasonable control of the party affected’, which can include anything from industrial disputes and riots ...