Can cargo be released without collection of destination charges..??

Question from a reader from Turkey.. Please feel free to comment..

Ask your question here..: Dear Hariesh

Hope doing well. I need your opinion to clarify a big doubt. Some cnee´s at Turkey received imports goods and original BL full set, with some pending charges payable at Turkey.

Shipping line release the cargo without charges collection because they insist that they can´t hold goods no matter that collect charges were pending to pay.

It is true ?? I mean shipping agent is obligated to check if cargo can be released with no pending charges no matter that shipper claims goods delivery with the Original BL ?? far as I know, if shipper sent some charges collect, cnee is forced to paid to request formal release of his cargo.

Waiting for your good clarification.
Brgds

Answer

Daniel, if this has been done, then it would be TOTALLY due to the IGNORANCE of the person and company that released the cargo to the consignee without collecting the relevant charges.. Especially as you mention that the shipper has sent some charges as collect from consignee.. Either the shipping line (or agent) at load port failed to manifest this clearly or the shipping line (or agent) at destination didn’t take note of the charges in the cargo manifest and released without collecting it.. risk - Can cargo be released without collection of destination charges..??

Since you mentioned that the shipping line insisted that they cannot hold release of the cargo in lieu of collection of charges, it could also suggest that the destination agent might have been too lazy to check with the load port if any charges were pending (in case the load port failed to manifest it)..

The charges for any shipment from Point A to Point B must be paid either at Point A (Prepaid) or Point B (Collect or in some cases at Point C (Collect Elsewhere) which could be anywhere in the world where the shipping line has accounting facilities) with the manifest and bill of lading showing the info of where the freight and other charges are being paid, clearly..

Overall, in this case, the destination port agent/shipping line failed to follow the guidelines for releasing import cargo some of which i have clearly outlined as below :

  • https://shippingandfreightresource.com/2011/08/17/who-pays-what-charges-for-a-shipment/
  • https://shippingandfreightresource.com/2009/02/08/documents-required-by-shipping-lines-for-release-of-cargo/
  • https://shippingandfreightresource.com/2008/11/17/duly-discharged-bills-of-lading-the-great-debate/
  • https://shippingandfreightresource.com/2008/10/19/article-4-import-process/
  • https://shippingandfreightresource.com/2008/10/13/article-2-the-documents/

In conclusion, THE SHORT ANSWER TO ANSWER YOUR QUESTION = NO..

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1 comment on “Can cargo be released without collection of destination charges..??”

  1. By Prakash Nair Reply

    Hi, The following scenarious can be noted ;
    1) Import shipment with part of freight element prepaid at origin port and the one part collect at destination port
    2) Import shipment where the consideration of sale ( between seller and buyer) has not been completed and the exporter wants the shipping line to stop-delivery of the cargo at the port of discharge.

    With regard to 1) above ; It is the duty of the shipping line to collect the freight or other anicilliary charges from the consignee prior to delivery of the goods. If they have not done so, it is construed to be a failure on their part to administer the recovery. As rightly said by, it is the duty of the shipping line or its agents to ensure full recovery of all freight and anicilliary charges prior to release of the goods.While so, the release of the goods upon collection of the original BL would satisfy the terms of the contract of carriage for the carrier.

    With regard to 2) above; As long as freight is paid, and a bill of lading has been issued and further it has been surrendered to the carrier prior to delivery of the goods at destination, the carrier is under no obligation to hold the delivery for some internal issue between the seller and the buyer. I have seen in some cases where the seller has not received the full proceeds of the transaction, and would therefore ask the carrier to stop-delivery of the goods at the destination so that the buyer is coerced to fulfill the contract. There is a certain risk that carriers take in doing so.

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