Policy & Compliance
all of which tend to be low value. The question of high quay rent has attracted the attention of regulators during the recent pandemic. The Federal Maritime Commission (FMC) in the USA has been particularly active looking into such matters. This leads us onto an important piece of guidance: when advised by a shipping line of an unwelcome and probably large invoice, it is important to treat the matter seriously and to endeavour to reach a commercial settlement with the carrier. The line will probably quote the wide-ranging ‘Merchant Clause’ as the contractual clause for the basis for invoicing the charges to the export freight forwarder. Where the shipper is still contactable, it is important for the BIFA Member to advise it of the nature of the costs and its liability. Everything should be confirmed in writing. Whether the BIFA Member is acting as principal or agent, the client, by accepting the STC, expressly authorises the freight forwarder to enter into the relevant contracts to facilitate the
movement of the client’s cargo. Although Clauses 5 and 6 of the BIFA STC have different wording, they clearly express the sentiment that the forwarder can enter into relevant contracts with carriers, etc, “on any terms whatever”. Whilst trying to resolve the financial situation it is essential to consider what to do with the consignment to prevent further accrual of charges or cargo deterioration. Usually, the options are to abandon the cargo, return it to the shipper or to find a new buyer for the consignment, whether it be in the country of destination or elsewhere. Dif fi cult position In these situations, the freight forwarder is often in a difficult position facing a large invoice from a carrier which it has to pay but with little anticipation of being able to recover. The other sound piece of advice to follow is to speak to a suitably qualified solicitor to obtain advice
Member Renewal 2024 – Have you completed your online Renewal Declaration? During early November, Full Trading BIFA Members were emailed a reminder to complete the 2024 Renewal Declaration. In order to ensure that renewal invoices are correct and that the contact details on the website remain up to date, it is essential that the Renewal Declaration is completed as soon as possible. The completed form should be sent by email to Sarah Milton s.milton@bifa.org Changes of address, new offices or office closures should be notified to BIFA when they happen. Contact Sarah Milton with any changes that will affect your 2024 Renewal Invoice, including changes to the Finance contact details.
“ Whilst in general terms anyone who undertakes a task for another agent, in law it is not what you say you are, but could be called an what you do that de fi nes the role that you perform
on the legal position and to minimise any costs that the forwarder may be liable for.
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December 2023 | 17
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