Why “Act of God” clauses fail in armed conflicts?
In this alert, we examine the allocation of risk in commercial contracts and marine insurance frameworks in the context of armed conflict affecting Gulf trade routes. Disruptions to shipping, port operations, and cargo transit during periods of hostilities expose structural weaknesses in force majeure clauses, war risk cover, and liability regimes that are often drafted for peacetime conditions. These issues arise across shipping and logistics arrangements, terminal operations, freight forwarding structures, and cross-border trade contracts, where parties rely on standard form provisions and insurance clauses that may not adequately respond to conflict-driven losses.