How to deal with the problem of no one picking up goods at the destination port caused by the epidemic?
During the epidemic, cases of no one picking up goods at the destination port may become more frequent, and handling such incidents during special periods will also be more difficult. But we can achieve the goal of reducing losses by understanding who to claim rights from, on what grounds to claim rights, and when to make requests when there is no one picking up the goods. Below are five suggestions provided by Wuxi Wanhang International Freight Forwarding Co., Ltd. for your reference!
1. Notification obligation and abandonment declaration
Once a member learns that the consignee has confirmed abandonment of the goods (requires a declaration of abandonment) or that no one has picked up the goods as reported by the destination port agent, they should inform the shipper or their freight agent of the situation, alert them of the risks of demurrage fees and increased demurrage fees, and request the shipper to make a statement on how to dispose of the goods. If the shipper indicates abandonment of the goods, it is recommended that the member request a declaration of abandonment and dispose of the goods within a reasonable time in accordance with the laws and policies of the destination port. If the shipper ignores it, they can inform and leave evidence in the form of a lawyer's letter.
2. Identify the responsible party based on the circulation of the bill of lading
When the bill of lading has not been transferred and the shipper holds the full set of original bills of lading, the shipper, as a party to the transportation contract, shall bear the responsibility of no one picking up the goods at the destination port. Members, as carriers, shall also handle the goods according to the shipper's instructions, such as reselling, returning or abandoning the goods. When the bill of lading has been transferred, although the carrier may choose not to dispose of the goods according to the shipper's instructions, under Chinese law, the carrier still has the right to claim compensation from the shipper.
3. Pay attention to policies and legal regulations related to the destination port
It is recommended to obtain information on the prescribed procedures for handling goods during the epidemic period at the destination port, as well as the policies for reducing terminal storage fees, through various channels such as agents and general agents. The association currently understands that the customs of ports such as Chittagong and the Philippines will auction off unclaimed goods within a certain period of time (45 days) to solve port congestion problems, and the demurrage fees of shipping companies can be prioritized in the auction proceeds (shipping agents need to apply to the port authorities).
4. Pay attention to the carrier's obligation to reduce losses
Taking domestic litigation as an example, when the shipper defends the carrier's claim for loss of unclaimed goods at the destination port, they usually argue that the carrier has not fulfilled its obligation to reduce the loss. For example, the carrier did not move the goods involved to a warehouse with lower storage costs, and did not auction the overdue goods to the court within a reasonable period of time.
5. Pay attention to the issue of statute of limitations in litigation
If a member chooses to exercise their litigation rights due to unsuccessful recovery from the responsible party or ignoring the responsible party, they should pay attention to the issue of statute of limitations in litigation. Due to different legal systems and countries having different regulations on the statute of limitations and starting standards for litigation, local representatives or lawyers can be consulted for detailed information when encountering cases. Taking domestic litigation as an example, the judgment of Case No. 119 may have more reference significance, as it determines that the litigation effect of container demurrage fees starts from the expiration of the free trial period of the container involved, and the statute of limitations is one year.
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