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What should I do if I encounter abandonment? CNS Logistics

by:CNS     2021-04-02
What should I do if I encounter abandonment? :2016-05-10 13:30:00 Almost all shipping companies’ agreements have added such a clause (abandonment clause): Party A: Forwarding Party B: Shipping company Party A should guarantee the delivery of goods to the port of destination, receiving the goods People will follow the normal local customs declaration and collection procedures, promptly change orders to the carrier or the carrier’s agent to pick up the goods, and bear the relevant local lifting and unloading and storage costs: if there is a delay in picking up/refusing to pick up/or abandoning the goods, A The party must be responsible for returning, destroying, auctioning or disposing of the goods by other methods in accordance with local laws and regulations, and returning them to the container. Party A agrees to pay Party B in advance the expenses incurred (including but not limited to lifting, storage, return, destruction, etc.) based on Party B’s reasonable estimate. Party A agrees that if there is a delay in delivery/refusal of delivery/or abandonment at the port of destination resulting in demurrage, and the consignee refuses to bear the demurrage, Party A shall pay or compensate the demurrage in accordance with the standard of Party B’s port of destination. The calculation time of the demurrage fee at the port of destination is: from the end of the free use of the container to the actual return date. The freight forwarder feels wronged, but what can be done? The problem of abandoning goods, and start from the source, and then look at the solution. 1. Why traders abandon the goods: 1. The consignee refuses to pick up the goods due to the quality of the goods, market price fluctuations, unfavorable sales of the imported goods, etc.; no one picks up the goods because the receiving company has closed down or disappeared. 2. The consignor refuses to deliver the bill of lading to the consignee because it has not received the payment, so that the consignee cannot pick up the goods. 3. Due to incomplete customs clearance information at the port of destination, customs clearance problems occur, and the goods cannot be picked up normally. 4. Due to special conditions, the arrival time of the goods far exceeds expectations, and the consignee refuses to pick up the goods. 5. Other trade disputes. 2. How to deal with the abandonment of goods 1. The news of abandonment is generally confirmed from the shipping company (because the goods have been stacked for too long in the destination port). Once the consignee confirms the abandonment, the shipping company needs to provide the local abandonment operation requirements and procedures at the destination port, so that both parties to the trade can deal with related abandonment matters. Because different countries, the disposal methods and requirements of different products are different. 2. The consignee abandons the goods, and the consignor has to find other buyers at the destination. Finding other buyers locally can minimize the processing cost, which is more cost-effective than directly abandoning or returning the goods. 3. If you can't find a suitable replacement buyer, you can only choose whether to return it or destroy it locally and auction it according to the value of the goods. It should be noted that even if the consignee abandons the goods in some regions and countries, if the consignor requests a return, the consignee’s written authorization is required, which is more difficult to handle. 3. Expenses incurred after the abandonment of the goods 1. Storage fees and related operating expenses at the port of destination. 2. Shipping company overdue container charges and related surcharges at the port of destination. 3. If the goods need to be destroyed, destruction fees and related expenses will be incurred. 4. If the goods need to be returned, in addition to the above (1) (2) costs, all relevant costs and freight for re-export at the destination port will be incurred. 5. In case of local customs auction after abandoned goods, the auction proceeds may not be enough to deduct the balance of the above (1) (2) expenses. 4. Isn't the attribution of responsibility after the abandonment of the goods the attribution of expenses? In the case of delayed delivery, refusal to pick up, or abandonment of the goods at the port of destination, and the consignee refuses to bear it, the consignor shall bear all relevant expenses.
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