CARM: What all importers need to know about CARM

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Terminology Explained

  Is this grounds for the
declaration of Force Majeure?

Force Majeure – Service providers declare “Force Majeure” (the French phrase for “superior force”) when extraordinary circumstances make it materially impossible to fulfill contract obligations.  For example, a bill of lading or contract of carriage for ocean transportation will typically include a clause that allows the carrier to declare Force Majeure when an extraordinary event prevents the delivery of the cargo to the specified location.

Examples of extraordinary circumstances include, but are not limited to, events such as wars, strikes, riots, crime and acts of God.  Notable events of Force Majeure being declared by ocean carriers were Hurricanes Sandy and Katrina and Japan’s tsunami.  Legal actions can still be advanced against carriers for negligence or failing to perform under conditions that are ordinary or expected, such as a forecasted storm. 

  Global Spotlight Quiz
     Global Spotlight

Global Spotlight Quiz

Quick Tip #24
Are you using the latest Incoterms?

Make sure your contracts of sale include the appropriate trade term in conjunction with the words “Incoterms 2010”, which came into effect January 2011.

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