CMA CGM declares Force Majeure on shipments to and from Port of Baltimore

With the Port of Baltimore closed until further notice following the tragic accident involving the Maersk-chartered Dali that left six dead, CMA CGM said it had determined a contingency plan complying with Clause 10 of its Bill of Lading terms and conditions.

CMA CGM said that exports currently stranded at the Port of Baltimore will remain there until the port re-opens   and in the case of cargo rerouting to alternate load ports the costs must be borne by the shipper…For import containers currently bound for Baltimore and on the water these will be discharged at “an alternative port” for pick-up where CMA CGM said its Bill of Lading would end.

Other major container lines issued similar notices on shipments to and from the Port of Baltimore without using the term Force Majeure.

Hapag-Lloyd said in a customer advisory that all containers bound for Baltimore would be re-routed to New York on request by Hapag-Lloyd at the shippers’cost. Containers awaiting shipment out of the Port of Baltimore would remain there unless written notice is received from the shipper for an alternative load port at the cargo owner’s account.

An advisory from Maersk, the charterer of the Dali, said cargo on the water would be discharged at alternative US East Coast Ports with the voyage terminating there. “There will be an offer to customers on a case-by-case basis to cater for inland movements due to limited truck/rail capacity available,” Maersk said.

With a lengthy closure of the Port of Baltimore expected as salvage operations clear the wreckage of the bridge data and analytics company Russell Group has estimated that it could affect $8 billion worth of trade. This includes $1.49 billion of automobiles along with $377 million worth of coal exports that would be disrupted for the next six weeks, based on estimates of at least a six week closure.

Force majeure is a clause that is included in contracts to remove liability for unforeseeable and unavoidable catastrophes that interrupt the expected course of events and prevent participants from fulfilling obligations. These clauses generally cover natural disasters, such as hurricanes, tornadoes, and earthquakes, as well as human actions, such as armed conflict and man-made diseases, according to Investopedia.