DHL Global Forwarding declares force majeure on ocean, air shipments

In light of the widespread flight cancellations and delays, and cancellations of ocean vessels, DHL Global Forwarding (DGF) declared force majeure for air and ocean shipments, indicating that, due to outside events beyond the reasonable control of DHL — in this case, the coronavirus pandemic — the forwarder may face unforeseeable obstacles preventing its operations.

The forwarding division of Deutsche Post DHL Group, DGF had in February declared force majeure on the Europe-Asia trade lanes as ocean carriers halted services to and from China. The ongoing coronavirus pandemic has led to widespread shifts in the supply chain, making it difficult for some forwarders to secure capacity on those flights and sailings that are still operating.

“With almost all elements of the air and ocean supply chain on certain trade lanes currently being impossible to predict or control,” DGF said in a statement to Air Cargo World, adding that its force majeure declaration allows it to “reserve to right to modify its services to the prevailing circumstances consequent to the virus.”

DGF also said that despite the declaration, it will continue to make every effort to secure capacity and support its customers, and that it “continues to provide extensive transport services.”

Forwarders’ declarations are not the only ones currently impacting supply chains. CNBC reported that as of March 3, China had issued 4,811 force majeure certificates related to international trade and affecting contracts worth about $53.8 billion.

In a separate special report on how force majeure declarations could affect global logistics, DHL Resilience360 advised shippers and manufacturers on strategies for mitigating disruptions caused by force majeure circumstances. Those recommendations included: establishing an internal crisis team to keep up with changes in regulations, the outbreak and potential supplier outages; assessing impacts of affected suppliers; seeking alternative supply sources and freight capacity; keeping in touch with suppliers and buyers; and exploring legal options to establish whether contracts allow for any remedies for delayed or canceled shipments.