It could happen to you – abandoned cargo costs freight forwarders dearly
With COVID related port closures, business shut downs and delays in shipments, more cargos are being abandoned at destination by shippers and consignees, who seem to disappear into the ether when called upon to settle large container demurrage and storage accounts. The freight forwarder is often then left in the firing line to pick up the expenses, if they are named as the shipper or consignee on the ocean carriers bill of lading, as the shipping line will claim against the freight forwarder for demurrage, detention and any other charges for uncollected cargo.
Forwarders should pay particular attention to:
• Any container overdue and incurring charges
• Keeping a good audit trail of communications
• Responding as soon as possible, most cases are able to be resolved quickly before costs escalate
Above all, avoid doing nothing. Whilst tempting, the longer you leave it, the more costly, difficult and time consuming dealing with abandoned cargo can be. It also pays to ensure liability insurance is up to date.
This article by the TT Club provides further detail, outlining the problems that can be encountered and provides some useful tips on how to minimise exposure to such events. Read the full article
Contact AlphaXO’s cargo and logistics insurance specialists if you have any questions or concerns regarding abandoned cargo.