Reefer Cargo Total Loss Due To Late Release From The Port

Cargo total loss due to delayed-release from the port.

There are many reasons why the receiver is late to clear out cargo at the destination. However, there are cargo claims when the shipping line is liable for delayed release and cargo total loss.

Keep reading…

A shipper of cargo fresh yams from Ghana to the UK recently lost an entire shipment due to a freight invoice being issued and sent to an incorrect party by the ocean carrier. As a matter of fact, the container was delayed from gating out at the port of discharge by more than 2 months.

How did that happen?

The shipper is a volume customer to the carrier and freight invoices were always sent timely by the carrier.

To make it very clear, freight invoice was never sent to the shipper, the shipper was never informed about cargo arrival and rightfully expected some delays in delivery as it is a common practice these days.

To make things more confusing, after two months of reefer container sitting at the port the ocean carrier sent a freight invoice to the importer’s customs agent. The importer never asked the carrier to notify the customs agent instead of him.

Excessive delay to gate out the container from the port led to the entire cargo total loss requiring disposal, as well as incurring major demurrage and detention charges, both from the port authority as well as the shipping line who issued the erroneous invoice.

Recoupex is pursuing ocean carrier to recover cargo value loss and collateral expenses importer suffered.

I hope this article was helpful and provided some perspective on how human error can lead to cargo total loss. Of course, as a shipper, be sure to have documents collected, the evidence available to prove the carrier’s negligence. Regardless of long-lasting business relationship with the ocean carrier also check ETAs yourself.

Never assume anything.