Emergency Contact Sara Assi and Rob Shearer: UK Supreme Court decision on the reliance of Force Majeure clause in the face of international sanctions Home Latest updates News Sara Assi and Rob Shearer: UK Supreme Court decision on the reliance of Force Majeure clause in the face of international sanctions 3 Jul 2024 View PDF Sign up for alerts Following on from the Club’s article, Paul Smit: Relying on Force Majeure Clause in the Face of International Sanctions , set out below is an update reflecting the landmark decision of 15 May 2024, where the UK Supreme Court delivered its judgment in the case of RTI Shipping Ltd v MUR Shipping BV [1] . As discussed below, this judgment provides useful clarity on the application of force majeure clauses in the context of international sanctions and alternative payment methods. Background As a brief summary of the background to the case, the dispute arose out of a Contract of Affreightment (COA) concluded in 2016 between MUR Shipping BV (the Shipowner) and RTI Shipping Ltd (the Charterer) for the carriage of bauxite between Guinea and Ukraine. Payment of freight due under the COA was to be made by the Charterer in U.S. Dollars. However, in 2018, as a result of U.S. OFAC sanctions imposed on the parent company of the Charterer, the Shipowner invoked the COA’s Force Majeure (FM) Clause. The FM Clause required that for an event to fall within the ambit of the FM Clause, it must not be capable of being “overcome by reasonable endeavours” from the affected party.  The Charterer sought to argue that the imposition of sanctions was not an FM event as it could be overcome by reasonable endeavours, through the payment of freight in Euros. The Charterer then commenced arbitration; and their claim was successful as it was found by the arbitrators that the acceptance of payment in Euros constitute reasonable endeavours to overcome the event of the US Sanctions. The Shipowner appealed the decision to the Commercial Court. The Commercial