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

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10 comments on “What happens when containers are abandoned by Consignee”

  1. By v. suresh Reply

    Our importer have filed bill of entry with customs, duty paid and after completion of customs inspection obtained out of charge. The cargo came in to container and landed four months back to CFS . In mean time their technical team advised that the item imported cannot be used since the life span has expired. Importer advised to abandon the cargo. OBL submitted to the liner and obtained D.O.(delivery order)
    1. Do we need to pay Container detention and demur-rage to the shipping lines to abandon the cargo
    2. If not paid what is the implecations

    • By Hariesh Manaadiar

      Hi Suresh, irrespective of the contents of the container or whether the product was in a usable condition to the customer or not, if there are any demurrage or detention charges applicable to the shipping line, that needs to be paid and they will ensure that they collect it.. Cargo abandonment happens all the time and such charges are part of this process and will be applicable..

  2. By Alex Rhondo Reply

    The liability for the abandoned cargo should lie on the shipping line, because the consignee cannot ship without the knowledge and acceptance of the consignee. If the payment for the goods has been made to the shipper, the shipping line needs to recover their costs from the local customs auction after a stipulated (legislated) reasonable time when the cargo has been discharged.

  3. By Hariesh Manaadiar Reply

    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..

  4. By roberto Reply

    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

  5. By roberto Reply

    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

  6. By santosh Reply

    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

  7. By Jober Reply

    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.

    • By Ms Laura

      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.

    • By sachin

      hi , this is sachin , if buyer at destination port is not clearing the cargo , and if we shipper inform to liner to auction the goods , but shipping company without following auction process and without informing shipper can they export the cargo to third country on their own keeping the original shipper in blind ? and after following ship co for continueous 2 months then they inform us the same that ship co exported it to third country and there the cargo could not be sold and there it is decided to destroy and charges will be on shipper now . please give proper guidance all knowledgables . thanx . sachin . shreesachin9323298738@gmail.com