What happens when containers are abandoned by Consignee

This was a question asked by Roberto – Email: inzainfo@bigpond.com..

Ask your question here..: What happens when the containers are abandoned by Cnee ? Is the Shipper liable for all detention charges incurred at Port ? is the jurisdiction at Loading Port or Discharge Port

Any comments..??

*** END OF POST ***

6 thoughts on “What happens when containers are abandoned by Consignee

Be part of the discussion and share your views about the article here..

  1. Hi Roberto, there is no one answer to this question as it is quite a complicated question covering various possibilities and combinations like :

    1) What type of bill of lading was issued (original or seaway bill)
    2) Who the bill of lading was consigned to (direct, to order)
    3) Freight payments
    4) Value of the cargo

    Jurisdiction will come into play only if there is an arbitration or a legal case.. Till such time, in the absence of anyone to take responsibility of the cargo and costs at the port of destination, the shipping line will naturally try to hold the shipper responsible for all costs..

    Shipping lines generally do not make any money out of a cargo abandonment and it is a big headache for them as well..

    I will write a detailed post about longstaying,uncleared and abandoned cargo shortly, so watch out for that..

  2. santosh
    cargo is ln chennai port and till this date they have never bothered to auction
    liner has tried or not we have no answers all they want is demurrage /detention charges
    is indian customs and liner bound by any law that with in three months of uncleared cargo to auction the goods and claim the proceeds accordingly ?
    agreed that proceeds of auction is that first payment isto customs and the bal to liner with shipper getting nothing but a double whammy of abandoned cargo cost and demurrage/detention charges etc ?
    i am not sure how many shippers and cargo agents have faced this problem but sincerely want your comments

  3. hi all
    thanks for your comments
    shipper has to be notified at all stages not go after shipper after one and half years and then stop all communications
    cnee is at fault for sure but in third world countries there is no law
    i am not sure if liner bothers to inform anyone and profits from the auction
    and does not bother to inform cnee or shipper
    Hariesh i wanted your opinion and i am still waiting

  4. It depeneds on the terms of shipment agreed b/n parties and ultimate shipper will be held responsible for the UAC cargo(Unabonded and uncleared cargo).If at POD cargo been uncleared then stipulated period by port/Liner then the cargo will be held as UAC cargo and new legal file is opened and will be updated with all demurrage/detention on daily basis.The final result will be either for new sale to consignee or re-import to POD on shipper account / Auction is final decision which is taken by shipper if the POD costs incurred is more than cargo value.
    Regards : Santosh,MSC VIZAG

  5. As far as I know, when a company book a freight, he needs to identify, shipper, consigee and notify, sometimes there is freight forward involded too, who all together are named as merchant, which are direct liable for freight and charges before shipping line, both at origin and destination.

    • Hi all,
      It;s not simple for a Freight Forwarder (F/F) to handle abandonments / Long staying shipments
      For sure that the Cnee refused the cargoes, it’s a must to get a Cargo Reject Letter from such Cnee so that the shipment now belongs to the shipper /exporter at origin port. This causes many troubles for the carrier (F/F) to claim the extra charges occured due to a long pending/staying time at destination.
      Then, Shipper has to decide what will be the next step for this case : cancel/ auction/ salvage or return.
      And next procedure will be done accordingly then.