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contact those parties named on the master bill of lading who it believes can be identified as a ‘merchant’. If the forwarder has booked the shipment ‘as agents’ of the shipper and this was advised to the carrier via its booking form, email or similar, then the forwarder is likely to have limited or no liability. In such cases, if required, liability insurance


cover can be invoked to cover the associated costs. However, if the forwarder has contracted directly with the carrier and is shown as shipper on the master bill of lading, it has done so as principal not as agent and the shipping line will be within its rights to place a claim on the forwarder. Also, it is important in both scenarios for the


Member to have incorporated the BIFA STC into any contracts with its customer because this will give it the legal basis, if correct procedures are followed, for exercising a lien and selling goods to recover costs. At the very start of the process it is important to obtain a letter of abandonment from either the shipper and/or consignee. Also, establish the whereabouts of and collect together all relevant documents relating to the shipment. Having reviewed some of the situations that


How to deal with abandoned cargoes


The costs surrounding abandoned cargo can run into many tens of thousands of pounds or more. Increasingly, it is a problem being faced by BIFA Members – who should act quickly


BIFA has noted an increase in the number of questions from Members regarding shipments being abandoned. This usually happens at destination, although we have noted a small increase in the UK due to increased Customs inspections looking for under-valued and misdeclared goods. Dealing with abandoned cargoes can be both


difficult and time consuming; carriers have whole departments dealing with such situations. The issues usually resolve around who is responsible for the quay rent and demurrage costs and the disposal of the cargo. The reasons for cargo being abandoned are varied and include the importer ceasing to trade,


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commercial disputes, documentation-related issues plus regulatory interventions including customs seizures.


Frequent questions One of the most frequent questions we receive is who is responsible for the quay rent and demurrage charges should the freight not be collected from the destination port? BIFA has long advised its Members for FCL consignments to have processes in place to monitor the arrival, clearance and removal of containers from the quay. Using the Merchant Clause incorporated within their conditions of carriage, carriers will


we have heard of, the costs surrounding abandoned cargo can run into many tens of thousands of pounds and, in at least one case we heard of, into over £100,000. Our best advice in this situation is to act quickly and contact the carrier, as often it is willing to come to a more commercially viable settlement. At the same time, contact insurers to see the extent of the cover provided.


Frequent questions It is also worth remembering that it might be possible to remove the goods to a cheaper storage area than the dockside, so this option should be explored. Faced with an abandonment, the three most common options are to re-export the goods (which may include selling them to the original shipper), sell the goods to another party, or destroy them. It is important to identify a party who has local knowledge to assist in dealing with abandoned goods. It will know about the correct procedures to be followed and have local knowledge regarding potential buyers for the goods. Although we work in a global industry, and the


rules in every country are different, BIFA has been made aware that the UK P&I Club has released a guide which can be searched by country to see how abandoned cargoes are dealt with. The guide can be found at www.ukpandi.com/knowledge-publications /publications/cover-service/abandoned-cargo- advice/


June 2018


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