Also known as: strike · strikes · lockout · lockouts · industrial action · work stoppage
Written by attorneys · grounded in primary & secondary sources — see below
A statutory exception that exempts a carrier from liability for loss or damage to cargo caused by labor disputes or work stoppages, provided the carrier bears no responsibility for its own acts.
Select any source to read its text and confirm it supports the definition.
Southland Foods ships perishable goods on a vessel that encounters a sudden longshoremen's strike at the destination port. The carrier cannot unload the cargo for ten days and the goods spoil. Because the loss stems directly from the labor stoppage and the carrier took no part in causing the strike, the exception shields the carrier from the shipper's damage claim.
Skyline Construction charters a ship to transport steel beams needed for a project. At the loading port a management lockout halts all stevedoring work for two weeks. The beams arrive late, triggering penalty clauses. The carrier invokes the exception because the delay arose solely from the lockout and the carrier committed no independent fault.
Spectrum Financial arranges ocean transport of sensitive electronics. A partial strike by crane operators leaves containers exposed on the pier during a storm. The carrier proves the damage resulted from the labor action and that it exercised reasonable care in protecting the goods, so the exception applies.
Sterling Manufacturing's cargo of machinery sits aboard a vessel when a nationwide port strike begins. The carrier cannot obtain labor to discharge the goods, and the machinery rusts. The exception protects the carrier because the harm traces directly to the general work stoppage without carrier misconduct.
Steven Silva's firm books a vessel to carry agricultural products. After a collective-bargaining impasse, terminal operators impose a lockout that prevents loading. The carrier shows the resulting spoilage occurred because of the lockout and that it had no role in the underlying labor conflict, triggering the defense.
Sydney Santos ships frozen seafood that requires constant power. A crew strike disables the vessel's generators at sea for several days. The carrier establishes that the spoilage resulted solely from the labor action and that it took all reasonable steps to mitigate harm, so the exception bars the claim.
No. The statute expressly provides that the carrier remains responsible for its own acts, so any negligence or fault by the carrier defeats the defense.
Yes. The exception protects the carrier only when the loss or damage arises from the strike or lockout. Concurrent causes traceable to the carrier will remove the protection.
Yes. The statute expressly includes stoppages or restraints of labor whether partial or general, so both limited and industry-wide actions qualify.
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