Uncollected or abandoned cargo –
an outdated problem of modern logistics
Got in trouble with unclaimed cargo? SeaRates will help. If they only knew how often and in what quantities recipients do not
pick up their cargoes, how we know. Read on.
Uncollected
or abandoned cargoes
Abandoned shipment is a typical problem for exporters and freight forwarders. Sometimes the cargo is not picked up by the recipient due to problems at customs, sometimes due to commercial disputes with the sender or recipient of the cargo, and sometimes even due to an unscrupulous shipper who sent cargo of dubious origin.
Display your cargo
Who is responsible for abandoned cargoes or uncollected shipment?
If you are booking cargo and/or show yourself on the master bill of lading then you can be fully responsible for demurrage, storage, destruction and other charges of any uncollected cargo.
Do not assume the master carrier will not have course against you because you do not own the uncollected cargo or because you have been given reassurances by the shipper/consignee the cargo will be cleared and that they will cover these costs. Whilst the cargo owner is ultimately liable, you are responsible for these charges in the first instance in the same way you are responsible for your clients’ cargo whilst under your care.
In any case, not taking any action is a common mistake of freight forwarders. Do not ignore notifications from carriers and merchants. Such behavior can lead to serious losses and legal damages. The sooner you start to solve the problem of handling unclaimed cargo, the better for all parties involved in this situation.
Find buyer
for your problematic cargo
Regardless of the reason, master carriers have become increasingly determined, investing a lot of time and money to ensure they recover their costs and have broadened their terms and conditions to make it much easier to collect from the booking parties. Freight forwarders are often caught up in this situation, not realizing the seriousness until it is too late.
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Act fast
while cargo retrieval process
The majority of all abandoned cargo cases would only be a fraction of what is eventually paid if handled correctly. A common mistake of freight forwarders is to not take immediate action.
Ignoring carriers’ notices and/or accepting merchants’ reassurances will leave you exposed to some of the biggest claims you will find on your books. Time is crucial in these situations and each day that passes makes the cargo less collectable.
How to minimize your chance of being a victim
Add your productPay close attention to any container overdue and incurring charges. If you ignore this problem, after some time it will become your problem.
Do not delay. Most cases can be resolved quickly before costs escalate with pressure on the shipper/consignee. Remember that merchants rarely cooperate once costs mount and exceed the value of the goods. Best practices for abandoned shipment handling must be used.
Whilst booking a cargo can still place you in a vulnerable position, do take the precaution to avoid being named as the shipper/consignee on the MBL.
The majority of abandoned cargo are of low value or freehand shipments, so pay more attention or avoid low value shipments altogether. If you are not comfortable with the type of cargo or the shipper, then you should think twice whether the revenue for the shipment is worth the risk of potential claims.
Try to have the uncollected shipment unstuffed and placed in a bonded warehouse to save costs.
Make the shipper/consignee aware they cannot abandon the cargo without any recourse against them. In so many cases Freight Forwarders sign Letters of Abandonment without knowing the implications against them and forgo any chance of recovery from the cargo owners.
Don't forget about abandoned cargoes. Solve this problem
Take it seriously, follow the recommendations above and you will be fine. If any problems arise, you can contact us for help.
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