Because of corona virus – outbreak will NSS hereby inform about the possible consequences virus can lead to auction / insider trading one . The following general guidelines will apply ;
If a situation arises where production has to be shut down due to a corona virus then we consider this to be a Force Majeure event in accordance with clause 12.2 of the Norwegian Herring Sale Team’s Business Rules.
In such Force Majeure cases, our practice has been that we bid on the next real bid in the auction that the vessel in question has been on and reconciling whether the buyer in question can take over the catch. If none of the buyers who participated in the auction in question have the capacity to receive the catch, one will have to auction the catch again. And then with the possibility of a changed supply area.
If unloading methods 1 and 2 are selected, cf. Circular 04/20, and the factory cannot fulfill this due to the corona virus, the vessel should be contacted for choice of other unloading method, or the opportunity to take the catch out at a new auction is given.
We hope this is clarified in relation to the very serious situation that the coronavirus outbreak entails
Author: Camilla Klævold/ NORGES SILDESALGSLAG (Norwegian)