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Breakbulk July 2020

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Contract inoculation COVID‑19 resets contracting norms for project logistics sector By Janet Nodar MANUFACTURING AND TRANSPORT delays, travel lockdowns, port restrictions, upended carrier schedules, and other shutdown-driven snarls have upset the normal flow of project logistics transport since February, and these new realities of the COVID-19 pandemic are forcing the supply chain to reappraise contracting norms. A wide array of logistics service providers (LSPs) contracts to move cargo around the globe for project owners — e.g., oil and gas companies, petrochemical companies, or developers of energy projects — and the engineering, procurement, and construction (EPC) companies that build their projects for them. Owner concerns flow "from the top down," said Utsav Mathur, a senior associate with international law firm Norton Rose Fulbright who specializes in shipping, offshore energy, and global disputes. These concerns shape the contracting decisions that link owners to EPCs and,

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