CME Wednesday lifted Force Majeure provisions that were invoked April 25 due to inability to load barges at full daily rates caused by flooding on the Illinois River.
Though Force Majeure has been lifted, CME said some flooding conditions still exist on the Illinois River, further preventing loading. Special provisions are in effect for those stations, detailed in accordance to CBOT rule 703. C. G.(8).
Those provisions note that "the shipper shall load water conveyance at the shipping station designated in the shipping certificate. If it becomes impossible to load at the designated shipping station for three consecutive business days as a result of Force Majeure, the shipper will arrange for water conveyance to be loaded at another regular shipping station in conformance with the shipping certificate and will compensate the owner for any transportation loss resulting from the change in the location of the shipping station.
"If the aforementioned condition of impossibility prevails at a majority of regular shipping stations, then shipment may be delayed for the number of days that such impossibility prevails at a majority of regular shipping stations."
River navigation resumed Saturday on portions of the Illinois River, including near the Marseilles Dam. The Dam was closed April 18 as a result of rising water levels and a subsequent tow accident involving seven barges.
According to the Rock Island District Army Corps of Engineers, the Marseilles Dam has been undergoing salvage and repair operations requiring restricted navigation in the areas upstream of the dam. Repair operations will continue, however the Corps deemed the lock safe and will allow navigation to resume with safety restrictions. More information regarding the Marseilles clean-up and repair can be found here.
More details of the Force Majeure provisions are found in CBOT Rule 701. The complete CME announcement can be downloaded below.
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