What is Force Majeure?

A contract is made in order to protect the mutual rights of the parties during the transportation process and to establish a guarantee of trust. In this way, while the responsibilities of the exporter, the carrier company, and the importer company are determined, the sanctions in certain situations are also clearly stated. The concept of force majeure is used for situations that occur outside the direct responsibility of one of the parties in the supply chain process and are difficult to foresee at that time. In other words, at the time the relevant contract is made, the possibility of an event that would be considered force majeure is not taken into account. The issue here is that, regardless of which party it originates from, the process is disrupted due to factors beyond their control.

The concept referred to as force majeure in transportation expresses extraordinary circumstances. In general usage, force majeure means a compelling or unavoidable reason. This creates an obstacle for the parties in fulfilling their responsibilities and promises. It is also a legal concept and has a legal basis.

In What Situations Does Force Majeure Occur?

As a requirement of sales contracts, the parties are obliged to comply with the provisions of the document they have mutually signed. For this reason, the exporter is responsible for sending the specified quantity of goods in the desired quality and without damage. At the same time, the importing company is obliged to pay the price of the goods in accordance with the contract. Contracts are made according to the conditions and economic circumstances of that time. However, sometimes unforeseen situations may arise. This is where the concept known as force majeure comes into play. In other words, negative situations may occur compared to the conditions at the time the agreement was signed. For example, in the event of a change or a downturn, one or both parties may become unable to fulfill their obligations. In such cases, either the contract is terminated or it may be revised with updated clauses according to the current conditions.

In addition, for a reason to be considered force majeure, it must be unavoidable. That is, regardless of calculated probabilities, if the outcome remains the same, it is considered force majeure. If the outcome could have changed by taking certain precautions and those precautions were not taken, then it cannot be considered a compelling reason. With the removal of force majeure, the reasons considered as such are eliminated.

What Situations Are Considered Force Majeure in Contracts?

A contract is an official written document prepared on the condition of mutual agreement. Through these documents, the exporter and importer define their demands and conditions. Based on these demands, a mutual consensus is reached. Thus, the supply chain process proceeds as desired. As a result of some unforeseen situations, the term force majeure is used in logistics. These are the reasons that arise when all or part of the commitments declared within the legal relationship established by the contract cannot be fulfilled. Force majeure events can be divided into two main categories: those caused by specific individuals and natural disasters.

Situations arising from natural events or person/state-based events can be considered force majeure. As a result of these events, the contract may be terminated unilaterally or mutually, or it may be renewed. However, at the time the contract is first made, the possible courses of action in case of force majeure should be clearly stated as evidence. So, under what headings can force majeure events be categorized?

• Strikes
• Wars and declared states of mobilization
• Social situations such as government coups and uprisings
• Epidemics (such as COVID-19)
• Financial conditions and subsequent economic crises
• Changes in relevant legislation
• Accidents during the transportation of goods, or ship sinking in maritime trade
• Floods
• Fires
• Earthquakes