Policy & Compliance
In port at Jebel Ali
‘on the water’ at the time that the conflict commenced. What steps should Members consider when resolving the issues stemming from the carrier ending the voyage at a destination other than that named on the original bill of lading? The customer’s first step is to look at the sales contracts and in particular the Incoterms used between buyers and sellers. This will help establish who bears risks and the responsibilities for resolving issues stemming from the line offloading the freight prior to the original port. These solutions will vary dependent on which party is entitled to make the relevant decision. However, Members should consider the potential impact of the Merchant Clause and whether they could be held liable for additional costs. Consideration should be given to what assistance is available to assist moving cargo from where it has been offloaded to another location from which final customs
consignment from the place of unloading on a chargeable basis. If the Member has a local office/agent, it is undertaking this activity. Concurrently, consideration will be needed to surrendering and obtaining new documents where appropriate from the carrier. For consolidators, a similar process may have to be undertaken for documents included within a mixed groupage load. Contact should be made with insurers/brokers to establish whether cover on the offloaded goods needs to be extended where the original contract of carriage has been ended short of final destination. Where goods have been shipped under a letter of credit (L/C), it is important that the banks are contacted and consideration be given to seeking an extension to the dates originally included in the L/C. Accurate records Our final piece of guidance is to advise Members that they maintain and retain accurate records of all communications and
conversations relating to this subject. These will be an important point of reference should there be enquiries and potentially legal action at a later date. At the moment all parties are trying to resolve operational problems stemming from the current disruption. This is the first time that such a clause has been used in such a broad manner by carriers – they will argue to protect crew, vessels and cargo. The question remains: have they exceeded the bounds of acting in a reasonable and balanced manner? There is no international maritime convention nor legislation covering this matter, and legal opinion is that the arguments are finely balanced and litigation may be needed for courts to clarify matters. Please note that this article is general industry information and not legal advice, which can only be provided by a suitably qualified legal expert.
“ There is no international maritime convention nor legislation covering this matter, and legal opinion is that the arguments are finely balanced and litigation may be needed for courts to clarify matters
clearance and delivery can arranged. Some carriers are offering to onforward the
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