Eastern Railroad Discussion > Threshold for CSX / NS invoking "Force Majeure"?

What factors go into a Class I like CSX or NS invoking Force Majeure? Is simply frozen switches over a large area? Or does roadway impassibility also play into it?

If I understand it, the term applies to a section in a shipping contract that relieves the shipper of delay penalties when events beyond the railroads' ability to control prevent it from operating trains normally.

Corrections appreciated if my premise is inaccurate or incomplete.

Thanks,

* JB *

In my experience It will depend on the contract. On bulk commodities such as coal Force Majure will often forgive a portion of a promise to ship a certain volume in a certain amount of time. Commodities such as set up autos, intermodal FAK. etc. may be quite different. This is not done lightly and only after discussions between the carriers and the customer.

Bob Wilcox
Charlottesville, VA
My Flickr Shots

Devils lie in the details. http://www.bakerdonelson.com/baker_bricks/blog.aspx?entry=489

That was a very interesting read--thanks for that. we hear the term bandied about at the railroad, and now I can explain what it actually means.