Global supply chains have been subjected to unprecedented pressure in recent years, driven by geopolitical instability, regional conflicts, inflationary pressures, energy market volatility, tariffs, sanctions, labour shortages and disruptions to key shipping routes. The result has been a significant increase in disputes arising from cost escalation, delayed delivery, material shortages and the allocation of unforeseen commercial risks.
This session will explore how arbitral tribunals are addressing claims arising from rapidly changing economic conditions and the extent to which parties can obtain relief when performance becomes substantially more expensive or commercially challenging. The discussion will examine recurring issues across construction, infrastructure, energy and long-term supply agreements, including force majeure, hardship and change in law provisions, price adjustment mechanisms, disruption and prolongation claims, and the evidential challenges associated with proving causation and quantum.
The panel will also consider the different approaches adopted by civil law and common law systems to unforeseen economic events, and whether existing contractual frameworks remain fit for purpose in an era of continuing market volatility. Drawing on recent disputes and practical experience, the session will provide guidance on risk allocation, contract drafting and dispute avoidance strategies, while considering how parties, tribunals and counsel can navigate the growing tension between contractual certainty and commercial reality.