As the human cost of the novel coronavirus (2019-nCOV) continues
to escalate, so too does the commercial and economic impact.
The economic effects are not confined to mainland
China. Supply chain disruption is being felt worldwide,
including in the construction industry as China plays a major role
in parts manufacturing. We are having an increasing number of
enquiries from clients as to how to manage force majeure risk, both
in terms of whether they should claim force majeure protection and
in anticipation of receiving force majeure notices up the
chain.
At the time of writing, it has been widely reported that
CNOOC's force majeure notices to seek relief from taking
delivery of some LNG cargoes have been rejected by Shell and Total,
leaving CNOOC to consider whether to go ahead and cancel the
contracts in any event. With many construction projects
around the world reliant on Chinese contractors and suppliers, we
anticipate that similar disputes as to the
