US east coast carriers declare 'force majeure' after Hurricane Sandy

THE aftermath of Hurricane Sandy on the US east coast has led to ocean carriers declaring a "force majeure" that removes liability and non-performance of one or more parties in a contract in the event of a natural disaster or act of God.

During the most costly hurricane in US history, the US Coast Guard in the Port of New York and New Jersey (PNYNJ) declared port condition "Yankee" for all commercial waterways, authorising the evacuation of the port by all vessels.

PNYNJ offered importers the relaying of an estimated 6,000 containers that landed at alternative terminals of Baltimore and Norfolk at a cost of US$750 per TEU.

Importers left to pick up the containers at their own expense face a shortage of trailers, likely to be made worse by east coast retailer panic over container delays for Christmas stocking.

A company can invoke a force majeure clause if unforeseen circumstances impact on its ability to deliver against a contract.