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ARTICLE · 18 FEBRUARY 2020

COVID-19 – Issues Affecting Shipbuilding Contracts

The rapid spread of COVID-19, a novel coronavirus originating from the Chinese city of Wuhan, is causing significant disruption to a wide range of industries

ChinaTransport

The rapid spread of COVID-19, a novel coronavirus originating from the Chinese city of Wuhan, is causing significant disruption to a wide range of industries, both in China and internationally. This disruption caused by COVID-19 has been felt particularly acutely in respect of shipbuilding, as an industry dependent on the employment of significant numbers of workers and the supply of materials required for construction.

A number of shipyards have issued force majeure declarations following the spread of COVID-19, in order to seek extensions to the delivery date under their contracts. This article considers the main legal issues concerning force majeure affecting both shipyards and buyers in light of the rapid spread of COVID -19.

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