What are the impacts?
Air Freight
Currently, there are little to no flights to most of the Middle East. Flights between Europe and the Far East are being diverted to avoid the area, adding distance and cost to the flight.
Shipping Lines
Shipping lines are currently diverting vessels to avoid the Middle East. Transits are avoiding the Red Sea, with concerns that the Houthis will take action against vessels using that route.
As expected, sailing times have been impacted and largely extended.
What can Members do?
During this time, it is crucial that members keep communication with all stakeholders.
- Carriers: Understand what services they are offering, expected timelines, route changes, and costs
- Clients: Keep them updated throughout the process, be their conduit of information
- Insurers: Possible withdrawal of War & Strikes cover, check their latest position
BIFA Standard Trading Conditions
Below are the clauses to refer to in line with the 2025 BIFA STC:
- Clause 24 (B) – Force Majeure clause: The Company shall be relieved of liability for any loss or damage if, and to the extent that, such loss or damage is caused by any cause or event which the Company, by the exercise of reasonable diligence, is unable to avoid and the consequences of which it is unable to prevent
- Clause 25 – Delivery not guaranteed: Unless it is expressly agreed in writing that the provisions of this clause 25 shall not apply, the Company has no liability for a failure to adhere to agreed departure or arrival dates of Goods, regardless of the cause.
- Clauses 20 (A) & (B) – Indemnity clauses
PLEASE NOTE: This is a developing situation; all information was correct at the time of publishing.
More Information
PLEASE NOTE: The guidance provided in this episode was correct at the time of recording (Monday 2nd March PM).
The post BIFA Member Guidance on the Current Events in the Middle East appeared first on British International Freight Association.
