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The S.S. Christos and the Suez Crisis The Transatlantic Financing Corporation operated the S.S. Christos, acargo ship carrying wheat from Texas to Iran, for the
The S.S. Christos and the Suez Crisis The Transatlantic Financing Corporation operated the S.S. Christos, acargo ship carrying wheat from Texas to Iran, for the United States government. While the S.S. Christos was en route to Iran, Israel invaded Egypt. Two days later, France and Great Britain invaded the Suez Canal Zone. The invasion and subsequent closing of the Suez Canal made it i m possible for the S.S. Christos to use the canal. A 3,000-mile detour around the southern coast of Africa cost Transatlantic an unexpected $44,000 above the original estimated cost of $305,842.92. When the United States government refused to pay the additional amount, the company brought a lawsuit. Although the United States and Transatlantic were not directly involved in the Suez hostilities, their contract had been affected by the conflict. Nevertheless, the federal court did not allow Transatlantic to recover the additional payment from the government of the United States. The courts decision was based on a traditional rule of co n tract law in the United States. The court declared, While it may be an overstatement to say that increased cost and difficulty of performance never constitute impracticability, to justify relief there must be more of a variation between the expected costs and the cost of performing by an available alternative than is present in this case.
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