Video Courtesy of United Grain Corporation
In the aftermath of Hurricane Ida we want to extend our support to all impacted.
IMPORTANTLY, we have been informed that Clause 20 of the NAEGA 2 FOB Model Contract has been invoked by several sellers.
Clause 20 applies when delivery of a commodity, or any part thereof, is prevented at an elevator or port, or the forwarding of the commodity to the elevator or port is prevented by the following:
NAEGA considers certifying the validity and duration of cause under Clause 20 when an application is submitted by the seller. Guidelines found here provide for further details on the Clause 20 process.
The multiple circumstances related to Hurricane Ida, including navigation, facility condition and electric power, are often integral to consideration of certification.
In addition to Clause 20 considerations, we remind users that the standard provisions of the NAEGA 2 provide that any disputes are governed by New York law and subject to arbitration under the rules and procedures of the American Arbitration Association’s International Center for Dispute Resolution.
Please contact NAEGA staff if you have any questions or concerns.
NAEGA’s success is based on information sharing and actions of people engaged in a network led by our membership and staff in coordination with colleagues around the world from both the private and public sector. The unique and successful collaboration that is NAEGA focuses on the common aspects of the global logistics systems for the trade of grains and oilseeds. We work to foster an inclusive and sustainable grain and oilseed export industry that provides predictability and efficiency for all stakeholders – from producer to consumer.
NAEGA is Member-Driven. We pursue our goals with a reliance on member action. The support and investment of the dedicated people and resources our members provide is critical to our success. In 2020 over 1100 hours of member volunteer time were dedicated to leadership and committees, providing experts for arbitration, responding to requests for certifications, supporting our efforts to build sound commercial practices and forming and advocating policy in North America and around the world. NAEGA member personnel are the backbone of our Association.
The North American grain export system is part of a large, diverse, and evolving global industry including public, private and cooperatively owned and managed facilities and trading entities. The industry must constantly innovate to seek added efficiencies, mitigate the enormous risks associated with international trade in a politically charged and highly competitive environment. The result is a contribution to global food security that is sustainable, reliable, responsible, and resilient.
As much as 30 percent of all grain and oilseeds and their associated products produced globally move into international trade. Trade that is critically important to farmers, ranchers, food processors and exporters and consumers across the globe. For example, in 2020 over $100 billion worth of grains and oilseeds were exported from North America and in the United States, exports of the goods produced by NAEGA members generate over 8,000 jobs for every billion dollars’ worth of grains and oilseeds exported.
Efficient and competitive markets are best to provide for affordable and sustainable food, feed and energy. Innovation within the industry and communication across the entire value chain are critical as well as minimizing or eliminating tariff and non-tariff barriers to trade and investment are essential to providing for the food security, political stability and economic well-being resulting from our Member’s businesses.
Member Spotlight – Degesch America
Learn more at www.degeschamerica.com
NAEGA is a trade association with membership made up of exporting grain and oilseed companies and cooperatives. If you are interested in doing business with a NAEGA member, click below for our trade lead form.