TT Talk - Recovery of container detention charges by delivery agents
AIison Cook of the Club's Sydney office helpfully draws readers' attention to a problem faced by the local transport operators relating to recovery of container detention charges: liabilities arising from the customer's use of the container. This then gives the member a contractual basis upon which to pursue a recovery if charges are incurred through the customer's delay.
"We have noticed a recent increase in the number of instances of container detention charges from shipping lines being incurred by our Australian forwarding members. This is where containers are being detained by consignee customers for longer than the free period allowed by the lines. A number of members have expressed an interest in how they might better protect their businesses from incurring these charges when really they have no control over the boxes once they are delivered to their customers.
The problem often encountered is that the member is named as consignee on the ocean bill of lading and so becomes contractually liable for charges to the shipping line under that bill. However, as far as the contract of carriage with the cargo interests is concerned the member acts as an agent only for his (foreign) principal who issues the house bill of lading. Not being a party to the house bill of lading contract means that the member will not be able to rely upon the contractual rights available in it, such as, - and typically stated in most bills of lading - the right to recover container detention charges.
We recommend that members insert a clause into the arrival documentation to the effect that the container is released into the customer's care on the basis that the customer agrees to indemnify the member for any fees, charges and other
The Club's members who are interested may like to contact our Sydney office for a full version of the recommended wording for the arrival notice."
Tags
You may also be interested in:
Recent case law from the NSW Court of Appeal in Australia acts as a reminder to freight forwarders to consider carefully the question of ‘whether to issue a house bill of lading?’ for a consignment. When doing so, there are clear steps to take to protect the rights of all stakeholders and avoid unforeseen exposures.
The target of 50% of all bills of lading to be electronic within the next decade has been set by the Digital Container Shipping Association (DCSA) in an announcement made last week. The international freight transport insurer, TT Club welcomes the commitment by the group of container shipping lines that together operate nearly 70% of the world's capacity.
Russian cargo theft trends 2020
13/04/2021
Russian cargo theft report highlights key trends in cargo theft and supply chain security throughout 2020.
Uncollected cargo has long been a challenge for stakeholders in the supply chain. Notwithstanding the attention, debate and advice around the topic, it remains at the forefront of logistics operators' minds. Every year the delay or failure of the consignee to collect cargo results in substantial storage, demurrage and detention costs. Such issues are invariably complex and require expensive management time to resolve.