Supply Chain & Inventory

Force Majeure

Force Majeure is a contract clause that excuses a party from performing its obligations when extraordinary events beyond its reasonable control — natural disasters, war, strikes, pandemics, port closures, government action — make performance impossible or impractical. The affected party is relieved from liability for the resulting delay or non-performance, provided the event and its effect fall within the clause.

In shipping and logistics, force majeure is invoked when events such as storms, port congestion, blockades or export bans disrupt carriage — but it is not a blanket escape: the clause's exact wording defines which events qualify, usually requires prompt notice and reasonable efforts to mitigate, and does not simply excuse a party that could still perform at greater cost. Because supply chains are exposed to exactly these shocks, force majeure clauses and how they are drafted and invoked matter to every trading and transport contract.

Why it matters

When a pandemic, war or closed canal makes a contract impossible to perform, force majeure decides who bears the loss. But its protection is only as good as the clause's wording and the notice given — which is why, after every major supply-chain shock, force majeure moves from fine print to front of mind for shippers, carriers and buyers alike.

Also known as
Act of God clauseFM clause
Where this matters at WHIZTEC
Frequently asked
Does force majeure excuse any difficulty in performing?

No — only extraordinary events beyond the party's control that fall within the clause; simply becoming more expensive to perform usually does not qualify.

What must a party usually do to rely on it?

Give prompt notice of the event and make reasonable efforts to mitigate its effects, as the clause requires.

More Supply Chain & Inventory terms

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