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Who pays for the abandonment of cargo at the port of destination of LCL?
Nov 14, 2024|
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In the case of abandonment of cargo in a bulk LCL (LCL) shipment, the responsibility for the costs involved will usually be divided according to the specific circumstances and the terms of the contract. The following is an analysis of the costs that may be incurred and the responsibility for payment after abandonment of cargo:
Costs at the port of destination
If the goods are abandoned at the port of destination, the costs associated with the port of destination (e.g., port storage fees, demurrage, customs clearance fees, etc.) are usually borne by the owner of the goods (consignor or consignee). Even if the consignee abandons the goods, the consignor, as the consignor, may still be liable for these costs if not agreed in advance.
Cargo handling costs
The costs of disposing of the goods after abandonment may also be borne by the consignor, especially if the consignee refuses to accept the goods. Disposal costs include costs associated with destruction, auctioning, return to origin, etc., and these are usually paid by the party responsible under the contract of carriage. These costs may be payable by the consignor if the responsibility is not clarified between the consignor and the freight forwarder or carrier.
Return shipment costs
If the goods need to be returned to the country of dispatch, the consignor is usually responsible for the cost of return shipment. The consignee has abandoned the shipment and is no longer responsible for it, and the consignor must make the charges according to the contract or insurance.
Freight
Freight issues will usually depend on the terms of carriage. Depending on the FOB or CIF terms, the consignor may have already borne part of the freight charges. If the freight charges have not been paid after the shipment has been abandoned, the carrier will first seek to recover the charges from the consignee. If the consignee refuses to pay, the ultimate responsibility may shift to the consignor.
Other Miscellaneous Charges
If the goods remain in the port for an extended period of time, there may be other miscellaneous charges, such as storage charges, tax charges, etc., the liability for which varies from contract to contract. If the consignee abandons the goods and is unable to find a new buyer, the consignor is usually responsible for these costs.
If the responsible party is not specified in the contract, the consignor is usually ultimately responsible for the costs, including destination charges, return costs and handling costs.
If the consignee abandons the shipment and does not pay the charges in advance, the carrier may be able to recover all unpaid charges from the consignor.
If the consignee abandons the goods and does not pay the charges in advance, the carrier may issue an indemnity to the consignor.
