GlossaryEN1 min readUpdated: Jun 13, 2026
Termination in case of insolvency
When a business partner becomes insolvent or an insolvency proceeding is initiated, freight forwarders or shippers may terminate the contract invoking an insolvency termination clause.
Quick Answer
Last updated: Published:
Source: https://de.wikipedia.org/wiki/Insolvenz
Category
Logistics Concept
Reading time
1 min
Words
75
Mentioned in
–
Definition & Explanation
When a business partner becomes insolvent or an insolvency proceeding is initiated, freight forwarders or shippers may terminate the contract invoking an insolvency termination clause. This protects the remaining party from further performance obligations and credit default risk. Claims are treated as general unsecured debts in insolvency distribution; early termination reduces the terminated party's stake in the distribution pool. Such clauses are standard in international trade and logistics to strengthen financial security and reduce exposure.
Next steps
Tools that match this term
Related Terms
You might also be interested in these terms
Related News
Logistics knowledge straight to your inbox
Weekly: Top news, industry facts and insights from the world of logistics – free.