Victor Restis Talks Legalese
A year into the COVID-19 global pandemic and many countries are still trying to recover. It seems it didn’t take very long for the finger-pointing and blame-game to start up for disruptions in the international shipping and trade industry caused by the global pandemic. Or at least discussions are taking place. In an article covering this topic, Greek shipping and trade executive, Victor Restis, indicates that although there were strains to the supply chain, it held strong.
One of the most significant issues was the risk to human resources in the many ports around the world. There are morethan two million seafarers traversing the seas and oceans aboard large cargo vessels and the virus was a direct threat to this segment of the industry. As these vessels travel from port to port, so do the workers and interaction with others ensues, and the risk of spreading the virus increases. As the virus shut down borders and related ports, ships were unable to unload cargo, and a domino effect occurred. The question raised in the article is when disruptions like this happen, which entity bears responsibility?
It doesn’t seem very cut and dry, given that the reason for the disruption is a worldwide pandemic that is hindering everything. But Restis points out that there are contracts between companies for nearly every touchpoint of the supply chain and the responsibilities may contractually dead even between the two parties. In the end, how can one company be liable for another with disruptions due to a global pandemic?
Interestingly, there is a law called Force Majeure that provides protections between contract parties and maybe what is used to sort through the legal madness caused by COVID-19. Force Majeure bears the burden of proof to translate what the pandemic caused and how maritime/international/contractual law all play together.
With an industry as gigantic and strong as international shipping and trade, I am sure there are teams of thousands of people working these problems and re-directing vessels to other ports that are deemed safe in the event of other potential calamities, as Mr. Restis points out. I did not experience any mass shortages of food or supplies because of the coronavirus (not counting toilet paper and hand sanitizer, which was more of a manufacturing and hoarding issue that supply chain) and was thankful to the millions of people on the frontlines who keep this vital supply chain going strong.
