Manitowoc Mayor Justin Nickels announced today that the city of Ludington Michigan has filed a notice of force majeure on work being done on their car ferry dock due to the federal government shutdown—specifically the United States Department of Transportation—that jeopardizes the start of the S.S. Badger car ferry season.
Force majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond both parties control prevents either party from fulfilling their obligations under the current contract. Both cities received a FASTLANE grant of $5 million from the Federal Government last year for repairs of the car ferry dock. Nickels says the concern is that nearly 80 percent of Ludington’s costs are to be met by the FASTLANE grant.
Nickels adds the economic impact would be “severely impacted.”
The partial federal government shutdown is approaching one month with no end in sight.
The S.S. Badger’s initial 2019 arrival in Manitowoc is scheduled for May 17th.
